Dáil Éireann Debate, Wednesday - 1 June 2022
93. Deputy Brendan Griffin asked the Minister for Housing, Local Government and Heritage the supports that are available to a first-time buyer who wants to build a house but does not qualify for the help-to-buy scheme; and if he will make a statement on the matter. [28252/22]
Amharc ar fhreagraThe Local Authority Home Loan is a Government backed mortgage 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 the successor to the Rebuilding Ireland Home Loan.
As part of the eligibility criteria applicant(s) of the Local Authority Home Loan must have received insufficient offers of finance from two regulated financial providers to apply for a Local Authority Home Loan. The loan enables credit worthy first time buyers and fresh start applicants to access sustainable mortgage lending to purchase new or second-hand properties or to self-build in a suitable price range.
To be eligible for a Local Authority Home Loan you must:
- be a first-time buyer;
- be aged between 18 and 70 years;
- be in continuous employment for a minimum of two years, as the primary earner or be in continuous employment for a minimum of one year, as a secondary earner
- as a single applicant have an annual gross income of not more than €65,000 if purchasing a home in counties Cork, Dublin, Galway, Kildare, Louth, Meath and Wicklow and be earning under €50,000 if purchasing a home in all other counties;
- as joint applicants have an annual gross income of not more than €75,000 combined in all counties;
- not be a current or previous owner of residential property in or outside the Republic of Ireland, unless you are a “Fresh Start” applicant;
- purchase or self-build a property situated in the Republic of Ireland;
- purchase or self-build a property which does not exceed the maximum market value applicable for the county in which it is located. The maximum house price is €320,000 in Cork, Dublin, Galway, Kildare Louth, Meath and Wicklow, and €250,000 in the rest of the country.
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 authority.
Further information on the scheme is available on the dedicated website localauthorityhomeloan.ie/.
