source:
  type: guide
  id: fnma-sel-b3-4.2-03
  authority: Fannie Mae Selling Guide B3-4.2-03 — Individual Development Accounts
  description: Fannie Mae Selling Guide B3-4.2-03 — Individual Development Accounts.
  coverage_tier: operative
obligations:
- id: fnma-sel-b3-4.2-03-full
  canonical_id: fnma-sel-b3-4.2-03-full
  section: Fannie Mae Selling Guide B3-4.2-03 — Individual Development Accounts
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide B3-4.2-03 — Individual Development Accounts
    source_class: fnma-guide
    source_url: https://singlefamily.fanniemae.com/media/document/pdf/selling-guide
    snapshot_id: 5f7b8b79da595d76
    fetched_at: '2026-05-25T14:09:57Z'
    content_hash: sha256:98cf85a02861bbe84914a0e339b327c8fc131869a8a573882007bbeea60c5701
    paragraph_quote: 'B3-4.2-03, Individual Development Accounts (02/06/2019) Introduction
      This topic contains information on individual development accounts, including:
      Individual Development Accounts Use of IDA Funds to Meet Borrower Minimum Contribution
      Requirements Lender Checklist for IDAs Individual Development Accounts Published
      May 6, 2026 418 Some nonproﬁt agencies will match the funds a borrower regularly
      deposits into a savings account that has been designated as an account that
      is used solely for the accumulation of funds to purchase a home. Such accounts
      are referred to as individual development accounts, or IDAs. Nonproﬁt agencies
      that oﬀer IDA programs have options with respect to accumulating and holding
      the matching funds, which include: the use of a parallel “savings” account that
      is separate from the homebuyer’s savings account; separately designated matching
      funds within a single agency account via accounting processes to allocate matching
      funds to a particular homebuyer; and the use of a trustee account that contains
      both the homebuyer’s funds and the agency’s matching funds. When a homebuyer
      reaches the target amount and is ready to complete the home purchase, the funds
      are disbursed from the nonproﬁt agency account to the closing agent via a single
      check or multiple checks. If the agency’s matching funds are held in an account
      that is separate from the homebuyer’s account, the matching funds need not be
      commingled with the homebuyer’s funds prior to disbursement to the closing agent.
      It is acceptable to allow the separate disbursement of funds from the agency
      and from the homebuyer, as long as the terms of the IDA program are met. Funds
      that the borrower deposited into an IDA may be used for either closing costs
      or the down payment. Use of IDA Funds to Meet Borrower Minimum Contribution
      Requirements Funds that the borrower deposited into an IDA may be used for either
      the closing costs or the down payment. Depending on the repayment terms of the
      IDA program, the borrower may or may not be required to meet the minimum down
      payment requirements from their own funds, as outlined below: Published May
      6, 2026 419 IDA Repayment Terms Allowable Use of Matching Funds The nonproﬁt
      agency • requires repayment of the matching funds, • agrees to defer or forgive
      repayment provided that certain conditions are met, or • ﬁles a lien against
      the property. The borrower may use the matching funds to supplement the down
      payment provided they have met the minimum borrower contribution requirements.
      The minimum borrower contribution must come from the borrower''s own funds unless:
      • the LTV or CLTV ratio is less than or equal to 80%; or • the borrower is purchasing
      a one-unit principal residence and meets the requirements to use gifts, donated
      grant funds, or funds received from an employer to pay for some or all of the
      borrower''s minimum contributions. See B3-4.3-04, Personal Gifts; B3-4.3-06,
      Grants and Lender Contributions; and B3-4.3-08, Employer Assistance, for additional
      information. The nonproﬁt agency • does not require repayment of the matching
      funds and • does not ﬁle a lien against the property. The borrower may use the
      matching funds for some or all of the down payment without ﬁrst being required
      to meet the minimum borrower contribution requirement from their own funds.
      Lender Checklist for IDAs The lender must ensure that all of the following requirements
      for an IDA are satisﬁed: ✓ Lender Checklist for IDAs Document how the nonproﬁt
      agency’s IDA program operates. Verify the rate at which the agency matches borrower
      deposits into the account. Determine that the borrower satisﬁed the program’s
      vesting requirements. Document the borrower’s regular payments into the account
      and the agency’s regular deposits of matching funds into the account. Recent
      Related Announcements Published May 6, 2026 420 The table below provides references
      to recently issued Announcements that are related to this topic. Announcements
      Issue Date Announcement SEL-2019-01 February 06, 2019 B3-4.2-04, Pooled Savings
      (Community Savings Funds) (04/01/2009) Introduction This topic contains information
      on pooled savings (community savings funds). Pooled Savings (Community Savings
      Funds) Pooled Savings (Community Savings Funds) Funds from a community savings
      account or any other type of pooled savings may be used for the down payment
      if the borrower can document regular contributions to the fund. Acceptable documentation
      includes written conﬁrmation from the party managing the pooled savings fund
      and documentation of regular borrower contributions. The borrower’s obligation
      to continue making contributions to the fund must be considered as part of the
      borrower’s debt when calculating the total debt-to-income ratio. Recent Related
      Announcements There are no recently issued Announcements related to this topic.'
  judgment: false
