Personal Vehicle Purchase (FAIM)

Personal Vehicle Purchase (FAIM) is sponsored by Family Assets For Independence in MN (FAIM). This program helps Minnesota residents without a reliable vehicle to purchase a reasonable used vehicle from a Minnesota dealership.

* Frequently Asked Questions * Post-secondary Education * Frequently Asked Questions * Post-secondary Education * Frequently Asked Questions * Post-secondary Education * Frequently Asked Questions * Post-secondary Education # Personal Vehicle Purchase The FAIM personal vehicle purchase asset track is meant for someone without a reliable vehicle in their household or whose current vehicle is unreliable and required ongoing repairs that have become a drain on their finances or is beyond reasonable repair.

The program is intended for someone who does not have the means or resources to obtain a reasonable used vehicle on their own and needs transportation to retain employment. To prepare the participant for vehicle purchase/ownership, a 10-hour car care/buying training is required in addition to 12-hours of financial management training.

The reasonable used vehicle must be purchased from a dealership in Minnesota and meet parameters of the program. The title must be transferred into the name of the FAIM participant only – funds cannot be used to purchase a vehicle for someone else. Participant is limited to their savings/match earned when purchasing a used vehicle that meets basic needs.

Other parameters and limitations may apply. * Be at least 18 years of age. * Be and remain a resident of Minnesota with valid MN driver’s license or MN photo ID card.

* Have earned income (wages from employment or self-employment). * Have total household net assets of less than $10,000. * Have combined household annual gross income at or below 200% of the current federal poverty guideline.

* Have the ability to reach their saving goal in 24 months or less. * Have the ability to complete the program and purchase a vehicle within a maximum of 30 months. * Have a valid Minnesota driver’s license * Follow program parameters for the used vehicle purchase.

* ### Additional Resources **A Handbook And Many Resources Are Available In The Cars Section Of The Minnesota Attorney General’s Website** * ### Frequently Asked Questions Can I use the FAIM account to obtain my asset in another state? No. The home or vehicle being purchased with FAIM funds must be located within Minnesota. Similarly, the business start-up or expansion must be done within Minnesota.

FAIM funds for education may be used for courses taken in-person or online at an accredited college in another state, however, the FAIM participant must remain a Minnesota resident. Can I save for my child’s post-secondary education? Post-secondary Education is the only asset track that allows the participant to use funds for their own education or the education of their spouse, child, or tax dependent.

Keep in mind that FAIM has a minimum enrollment period of 6 months + 1-day, and maximum enrollment is 30 months or grant end (whichever comes first) so the student will need to register for courses within that timeframe. New pilot track in 2024 – FAIM is offering a 529 College Savings asset track for parents of young children (babies through elementary grades, or possibly junior high) who want to save for future education expenses.

If enrolled in this asset track: you will be required to open a MNSaves account, and you must be a legal parent of the child you list as beneficiary of the account. Do I have to pay taxes on FAIM money? Your deposits to the FAIM (IDA) account must be made from earned income which was already taxed.

The funds used to match FAIM savings comes from grants and is held in a separate escrow account by the program’s fiscal administrator. If the matched payout for your chosen asset is made payable to a third-party vendor the FAIM participant is not responsible to claim the match as income or be taxed on those dollars.

If a matched payout for an Emergency Savings asset track is not paid to a third-party vendor, the match may be considered income which could impact the FAIM participant’s eligibility for and/or benefits received from other programs (MFIP, SSI, etc.) and may also have tax implications. BEFORE considering enrollment in this track – check with your caseworker to determine how it may affect your benefits.

If a matched payout for the 529 College Savings asset track is sent to MNSaves and is deposited into the account the FAIM participant opened, it may affect their eligibility for and/or benefits received from other programs (MFIP, SSI, etc.) and may also have tax implications. BEFORE considering enrollment in this track – check with your caseworker to determine how it may affect your benefits. ### Could FAIM be right for you?

Looking for guidance on your journey to become financially independent? **Get in touch with your local FAIM Agency** and be connected with a coach in your area who can help you achieve your financial goals. Looking for guidance on your journey to become financially independent?

Get in touch with your local FAIM Agency and be connected with a coach in your area who can help you achieve your financial goals. * Post-secondary Education