Apply for Local Authority Home Loans to buy your home
If you are among the many people who have been finding it difficult getting mortgage approval to buy a home, did you know about the Local Authority Home Loan Scheme? Housing Minister Darragh O’Brien recently (late August) declared that people who are single, or couples with 1 or 2 incomes should apply to their local authority (county council) for the scheme.
The government-backed scheme enables first-time buyers to borrow up to 90% of the value of their home. There are some restrictions, but the option is a bright one if you have experienced hardship applying through other financial institutions.
Minister O’Brien said the initiative, which was originally launched as the Rebuilding Ireland home loan scheme can offer “tangible financial assistance to those looking to purchase their own home.” Under the scheme, the local authority home loan can be used to purchase a home that is either new or second-hand and it includes self-builds.
There is an income limit for eligibility: for single applicants this stands at €70,000 or €85,000 for a couple. In Dublin, Kildare, and Wicklow, the maximum value of the property on the scheme is €360,000. In the midlands the property value numbers are: Offaly and Laois, up to €275,000; Westmeath, up to €300,000.
The Local Authority Home Loan Scheme also operates on the “fresh start” principle for applicants who are divorced or separated and have no interest in the family home.
As of September 1st 2023, over 3,350 households successfully applied to the scheme and were provided with a state-backed mortgage to purchase their own home.
The Minister was quoted as saying “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 in your own county here: https://localauthorityhomeloan.ie/calculator/