Dáil Éireann Debate, Wednesday - 20 March 2024
603. Deputy Seán Canney asked the Minister for Housing, Local Government and Heritage if an applicant for the local authority home loan will be considered as a second chance applicant if they are divorced but still retain a legal interest in the family home; and if he will make a statement on the matter. [11689/24]
View answerThe Local Authority Home Loan is a Government backed mortgage scheme for creditworthy applicants 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 Fresh Start principle applies for applications to affordable housing schemes and the Local Authority Home Loan, for applicants who are divorced, legally separated/separated or the relationship has ended and have no financial interest in the family home. In recognition of such instances an exemption to the First Time Buyer eligibility criteria can be applied under the Fresh Start Principle for the following category of persons to apply for the Local Authority Home Loan:
• Applicant(s) that previously purchased or built a residential property, but is legally separated or divorced and has left the property and divested themselves of their interest in the property; and
• Applicant(s) that previously purchased or built a residential property but has been divested of this through insolvency or bankruptcy proceedings, are eligible to apply. However, a separate assessment of creditworthiness will be conducted by the underwriters.
To be eligible for a Local Authority Home loan, Fresh Start applicant(s) must have divested their interest in the previous property.
Further details on the Fresh Start eligibility can be found on the dedicated website localauthorityhomeloan.ie/information/faq/eligibility/#question-4.
