SUPPORT for first time buyers by the Government in the October 2008 Budget was indicated in the introduction of the Home Choice Loan scheme.
When he announced the new measures, Minister for Urban Renewal and Housing Michael Finneran pointed out that the “credit crunch” was creating a situation whereby people who had ready access to a mortgage from one of the financial institutions, were now unable to secure sufficient loan finance. In consequence, the Home Choice Loan was rolled out.
“To address this situation”, said the Minister, “the Government has decided to extend a temporary line of credit to first time buyers who wish to buy now but who have been affected by the credit squeeze. The new Home Choice Loan will be available to first time buyers of new properties subject to a maximum loan of 285,000euro, and a maximum loan to value ratio of 92 per cent”.
Regional basis
The Home Choice Loan scheme is operated on a regional basis by a small number of local authorities, with support from the Affordable Homes Partnership.
“This arrangement is designed to respond to a very specific set of circumstances in the housing market, fully in line with the Government’s policy of only intervening in a targeted way, to achieve specific outcomes. It is about facilitating, rather than incentivising, first time buyers who wish to purchase a home”.
A website – www.homechoiceloan.ie – and phone line providing preliminary details and prospective applicants can register their interest.
To qualify for a Home Choice Loan
applicants must:
* be a first time buyer (some exceptions may apply);
* earn more than 40,000euro as a single applicant and over 50,000euro combined income as joint applicants;
* be in permanent employment for two years; If self-employed be able to submit two years certified accounts;
* provide evidence via a broker that they could not obtain sufficient finance from two banks or building societies.
Refer to www.homechoiceloan.ie for a list of city and county brokers and valuers authorised by the scheme in Limerick. The scheme has a national Lo Call number in 1890 252842 to respond to general enquiries.
