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Housing Schemes

Dáil Éireann Debate, Thursday - 27 January 2022

Thursday, 27 January 2022

Questions (205, 206)

Pa Daly

Question:

205. Deputy Pa Daly asked the Minister for Housing, Local Government and Heritage if he will report on the detailed eligibility criteria for fresh start applicants under the local authority home loan scheme; and if he will make a statement on the matter. [4131/22]

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Pa Daly

Question:

206. Deputy Pa Daly asked the Minister for Housing, Local Government and Heritage if persons who had to sell their home resulting in a mortgage in negative equity will qualify as a fresh start applicant under the local authority home loan scheme; and if he will make a statement on the matter. [4132/22]

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Written answers

I propose to take Questions Nos. 205 and 206 together.

The 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. A ‘Fresh Start’ principle applies for applications to State loan schemes such the Local Authority Home Loan. The following categories of persons are eligible to apply for the Local Authority Home Loan under the Fresh Start principle:

- Applicant(s) that previously purchased or built a residential property, but is divorced and has left the property and divested themselves of their interest in the property are eligible.

- Applicant(s) that previously purchased a residential property, but have been divested of this through insolvency or bankruptcy proceedings, are eligible to apply. The applicant must be discharged from bankruptcy proceedings. It should be noted that a return to solvency should not be interpreted as a return to creditworthiness, which is a separate assessment.

In recognition of such instances, an exemption to the First Time Buyer eligibility criteria can be applied under the Fresh Start Principle.

The final decision regarding the Local Authority Home Loan application is made by the relevant Local Authority Credit Committee on a case by case basis.

Further details can be found on localauthorityhomeloan.ie/.

Question No. 206 answered with Question No. 205.
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