What is Affordable Housing?
- The Affordable Dwelling Purchase Arrangement is set out in legislation and regulation.
- An affordable housing scheme is a program where the Local Authority assists a member of the public to purchase a housing unit by purchasing a percentage of the house.
- This scheme seeks to address the affordability gap that exists when acquiring a home. Households which, using their combined deposit and their approved maximum mortgage, cannot afford the home at its open market value.
- The percentage of equity bought by the Local Authority will vary depending on the purchasing power of the applicant.
Who is the scheme for?
- This scheme is aimed towards first-time buyers. It also incorporates ‘fresh start’ applicants:
- You are now divorced, separated or your relationship has ended
- You have gone through personal insolvency or bankruptcy
- The scheme applies to new-build houses and apartments.
- Each applicant is assessed and must meet certain criteria’s which will be outlined prior to application.
- The support provided by the local authority takes the form of an equity share of the home, where the equity share required will not be less than 5% and not greater than 40%.
- Applicants will be required to maximise their mortgage drawdown capacity (4 times a household income, from a participating bank, according to the Central Bank’s macro-prudential rules).
Applicants may be able to avail of the following assistance:
Local Authority Home Loan: https://localauthorityhomeloan.ie/
Help to buy: Help to Buy Scheme
For further information and income calculations, please visit the Housing Agency Website https://www.housingagency.ie/