Dáil Éireann Debate, Tuesday - 25 January 2022
98. Deputy Louise O'Reilly asked the Minister for Housing, Local Government and Heritage if his attention has been drawn to the fact that county councils will not approve mortgages for persons who have been offered affordable housing; and if he will make a statement on the matter. [3352/22]
View answerThe Local Authority Home Loan is a Government backed mortgage scheme for those on modest or low incomes who cannot get sufficient funding from commercial banks to purchase or build a home. It has been available nationwide from local authorities since 4 January 2022 for first-time buyers and fresh start applicants. The loan can be used both for new and second-hand properties, or to self-build. It is a successor to the Rebuilding Ireland Home Loan (RIHL), and the response below also applies to the RIHL.The Minister has no role in individual applications for the Local Authority Home Loan and cannot comment on individual cases. The final decision on Local Authority Home Loan applications is a matter for the relevant local authority. Decisions on all housing loan applications must be made in accordance with the Regulations establishing the scheme and the credit policy that underpins the scheme, in order to ensure prudence and consistency in approaches in the best interests of both borrowers and the lending local authorities.
The Local Authority Home Loan can be used for the purchase of homes through State schemes such as the Tenant Purchase Scheme and Affordable Housing Schemes, with the exception of the First Home Scheme. However, it should be noted that there is a creditworthiness assessment as part of the Local Authority Home Loan application process. Therefore it is possible that a person may be eligible for affordable housing but may not have the income or appropriate creditworthiness to obtain sufficient financing from the Local Authority Home Loan.
Further details can be found on localauthorityhomeloan.ie/
