The Local Authority Home Loan is a Government-backed mortgage for those 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.
The following categories of persons are eligible to apply for the Local Authority Home Loan under the Fresh Start principle :
• Applicant(s) who previously purchased or built a dwelling, together with a spouse, a civil partner or a person with whom he or she was in an intimate and committed relationship are eligible under the Fresh Start principle where this relationship has ended, and they have divested themselves of their interest in the previous property.
• Applicant(s) that previously purchased or built a residential property, but has been divested of this property through insolvency or bankruptcy proceedings, are eligible to apply. However, a separate assessment of creditworthiness will be conducted by the underwriters. This applies when the applicant has exited the insolvency/bankruptcy proceedings
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 lending local authority.
The final decision on Local Authority Home Loan applications is a matter for the relevant local authority.
Further information can be found on the dedicated website https://localauthorityhomeloan.ie/
