More homebuyers in Mayo now eligible for local authority home loan
THE Minister for Housing, Local Government and Heritage, Darragh O’Brien, has announced significant improvements to the local authority home loan that will result in more people in Mayo being eligible to apply for the State-backed mortgage.
The prices of homes eligible for a local authority home loan and income limits of those eligible to apply for a loan are being increased.
From March 1, house price limits for homes in Mayo that are eligible for the loan will increase by €25,000 from €250,000 to €275,000. Income limits for joint applicants will increase to €85,000 and the income limit for a single applicant in Mayo will increase to €70,000.
The local authority home loan was launched in January 2022 as part of Housing for All. It supports creditworthy borrowers who are unable to get finance from commercial banks to buy a home. It can be used for new, second hand or self-build homes.
It means those on more moderate incomes are helped by the State to achieve homeownership.
Said Minister O’Brien: “I am delighted to announce these improvements to the local authority home loan, which will take effect from March 1. Supporting home ownership is a key objective for this government and the increase in eligible house prices coupled with the increase in income limits will mean more people in Mayo can access the loan.
"Importantly, building on changes made this time last year we are again increasing the income limit for single applicants so that those earning up to €70,000 who wish to purchase a home can avail of the State backed loan.
“The ‘fresh start principle’ also applies whereby people who are divorced or separated and have no interest in the family home, or who have undergone insolvency proceedings, can also avail of the loan.
“The changes reflect the reality of today’s housing market and we will continue to keep the local authority home loan under review to ensure it remains a genuine and relevant support for people in Mayo who want to own their own home.”
Since February 2018, over 3,300 people have got on the property ladder through the loan and its predecessor, the Rebuilding Ireland home loan.
More information on the local authority home loan can be found at https://localauthorityhomeloan.ie/.