An expanded Local Authority Housing Loan Scheme, which aims to make it easier for single people to access state-backed mortgages, has been launched by Housing Minister Darragh O’Brien.
The system, which comes into force on January 4, is open to all first-time buyers and “new start” candidates with low or modest incomes.
Houses purchased under the scheme cannot be worth more than €320,000 in Dublin, Cork, Galway, Meath, Kildare, Louth or Kildare and €250,000 elsewhere.
Income limits also apply. Single applicants cannot have an income above €65,000 if they are looking to buy a house in the €320,000 house price zones; the income ceiling is €50,000 otherwise. The resource ceiling for co-applicants is €75,000 nationwide.
Mr O’Brien said supporting home ownership was a ‘key objective’ for the Government, with this scheme being a step towards achieving that.
“The new regulations will make it easier for single people to qualify for a state-backed mortgage for a new, used or self-built home,” he said.
“A ‘fresh start’ principle also applies, which means that people who are divorced or separated and have no interest in the family home, or who have been subject to insolvency proceedings, will also be able to to apply.”
The program will work in the same way as previous local authority loan products, helping borrowers secure an affordable, long-term fixed rate mortgage to buy their own home.
Applicants for the Local Authority Housing Loan must have been unable to obtain sufficient funding from a commercial lender to be eligible.