People who have been trying to buy a home but who have had difficulty getting mortgage approval have been urged to apply for the Local Authority Home Loan scheme by Housing Minister Darragh O’Brien.
The Minister launched an advertising campaign this week aimed at encouraging take-up of the Government-backed mortgage scheme which enables first-time buyers to borrow up to 90% of the value of their home.
Minister O’Brien said the initiative – which was originally launched as the Rebuilding Ireland home loan scheme - offers “tangible financial assistance to those looking to purchase their own home.”
Unlike the help to buy and shared equity schemes, the local authority home loan can be used to purchase a second-hand home as well as new homes and for self-builds.
The income limit for single applicants stands at €70,000 and €85,000 for a couple. In Dublin, Kildare, and Wicklow, the maximum value of the property on the scheme is €360,000. This drops to €330,000 in Cork, Galway, Louth, and Meath, and drops further for other counties.
The scheme operates on the fresh start principle, meaning that applicants who are divorced or separated and have no interest in the family home can apply for the loan.
“To date, over 3,350 households have successfully applied to the scheme, have been provided with a State-backed mortgage, and have purchased their own home,” said Mr O’Brien.
“I’m encouraging anyone who is seeking to get on the property ladder but who have received insufficient offers of finance to look into the option of applying for a local authority home loan.”
You can find out more about the scheme here.
