Housing, Local Government and Heritage | To ask the Minister for Housing; Local Government and Heritage the extent to which Rebuilding Ireland loans or their equivalent can be made available readily to first-time house buyers or to first-time buyers in a new relationship
To ask the Minister for Housing; Local Government and Heritage the extent to which Rebuilding Ireland loans or their equivalent can be made available readily to first-time house buyers or to first-time buyers in a new relationship; and if he will make a statement on the matter.
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. The Local Authority Home Loan is the successor to the Rebuilding Ireland Home Loan. 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.
Single applicants for properties in counties Cork, Dublin, Galway, Kildare, Louth, Meath or Wicklow must not be earning greater than €65,000 annual gross income or €50,000 annual gross income for properties in all other counties in the Republic of Ireland. Joint applicants must not be earning greater than €75,000 combined for properties in all counties in the Republic of Ireland.
Aside from first-time buyers, a ‘Fresh Start’ principle applies for applications to 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/separated or otherwise 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 https://localauthorityhomeloan.ie/
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