Can I use the Local Authority Home Loan to carry out refurbishments on the property I wish to purchase/already own?

No. The Local Authority Home Loan can be used to purchase new or second-hand properties, or to self-build only. It is not available for refurbishment or renovation projects. Property purchased or self-built must be in a habitable condition acceptable to your local authority.

What evidence of insufficient mortgage offers do I need?

You must have received insufficient mortgage offers from two regulated mortgage providers to be eligible to apply for the Local Authority Home Loan. Evidence must be dated within twelve months of your application, and the amount you have been offered must be equal to or less than the Local Authority Home Loan amount sought.

Examples of acceptable evidence are:

• A letter from a regulated mortgage provider showing the amount you requested and were offered, and/or
• A letter from a regulated mortgage provider stating that your application is outside their lending criteria, and/or
• An on-line calculator output sheet from a regulated mortgage provider website, showing that you have insufficient borrowing capacity for the amount sought under your Local Authority Home Loan application.
• A letter from a mortgage broker firm confirming that you have been unable to secure sufficient mortgage finance from two regulated mortgage providers, with supporting screenshots or print outs of the attempts made.

A regulated mortgage provider is a company that is regulated and permitted by the Central Bank of Ireland to provide monies to borrowers who wish to purchase a property, such as banks, building societies and credit unions.

Insufficient Offers of Finance for the Local Authority Purchase and Renovation Loan

• If the loan offer from the commercial lenders is below the Local Authority Purchase and Renovation Loan required, then you  meet the insufficient offers of finance criteria.
• If the Local Authority Purchase and Renovation Loan required is within your borrowing capacity  based on your stated income, you are required to show two specific loan rejections from commercial lenders for this renovation project.
• If evidence of insufficient offers of finance are not provided, you are  ineligible to apply . 

What is the Fresh Start principle?

The Fresh Start principle allows people who have previously previously purchased or built a dwelling/dwellings  to be eligible to apply for a Local Authority Home Loan.

You are eligible to apply for a Local Authority Home Loan under the Fresh Start principle if you:

• Previously purchased or self-built a residential dwelling/dwellings, and
• Are divorced/separated or otherwise no longer in a relationship with your co-owning partner, and
• Have left the family home and divested yourself of your interest in the property

or

• Previously purchased or self-built a residential dwelling/dwellings, and
• Have been divested of this through insolvency or bankruptcy proceedings

The Fresh Start principle does not allow a Local Authority Home Loan to be used to buy out a former partner’s share of a family home.

Note: If you are eligible under Fresh Start and you previously owned more than one dwelling you can still apply once you meet all the other eligibility criteria.

Where do I send my application for a Local Authority Home Loan?

You send your completed application form to the local authority in which you intend to purchase.

What is continuous employment?

Continuous employment does not need to be permanent, but continuous in nature. This means you may be in the same employment or in more than one employment for that period, where a break in employment has lasted no more than 4 weeks.

Multiple casual employments will not be considered eligible.