House Purchase Loan Scheme

davet82

I rang fingal county council yesterday and they told me the affordable housing scheme is finished there.

The person I was talking to informed me of the House Purchase Loan Scheme. You basically apply for a mortgage from a bank, (which will turn you down) and then you go back to the council who will then give you the loan.

Sounds a little too good to be true? Has anybody here availed of this scheme? Is there some kind of waiting list?

Let me know, thanks

irlrobins

There are details on Fingal's website.

I imagine it's not as simple as granting you a loan if you've been refused by two banks. The council will apply their own assessment and might still turn you down. Probably more so considering the funding pressures they are under.

foxy06

The story I got from them was that you must be able to afford the mortgage but they are not as strict about length of time in employment. As in if one applicant has been working for 5 years but other is only working for 1 then they will be more inclined than a regular bank to lend to you. Also minor problems with credit history may be overlooked. You still need the 8% deposit and be able to afford it though.

Treehouse72

davet82 wrote: »

I rang fingal county council yesterday and they told me the affordable housing scheme is finished there.

The person I was talking to informed me of the House Purchase Loan Scheme. You basically apply for a mortgage from a bank, (which will turn you down) and then you go back to the council who will then give you the loan.

Erm, no. You need to prove that you have been turned down by 2 lenders in a "normal" mortgage application process. After that has happened, you can go to the council and ask them to facilitate you instead, and they will then judge the application using their own criteria

Sounds a little too good to be true?

Not sure how you come to that conclusion. First, because the mortgage limit is €220,000, which still won't buy you much in Dublin.

Second, there used to be a name for mortgages given to people who couldn't get them in the normal open market: sub-prime. That's what this scheme in essence is.

Third, property prices are still falling like a stone. 3.8% in Dublin last month alone. That's about about €7,000 pm on a €220,000 mortgage. €7k a month!! Jumping at a hair-brained lending scheme at such a time would be a poor, poor decision.

davet82

I meant that it sounds too good to be true that somebody would actually lend you money for a house seeing that 8 of 10 applicants are being shot down at the various lenders.

I'm desperate to provide a home of our own for my partner and children and i'm looking at options and this seemed like my only hope of getting the funds to do that but by the sounds of it the council are broke too and probably would only take a safe bet which would probably have been 2 of the 10 people approved by bank making the scheme pretty bloody useless lol ah well

Treehouse72

davet82 wrote: »

I'm desperate to provide a home of our own for my partner and children

Just think about that 3.8% drop in Dublin prices for August. You have just saved your family about €6,000 (allowing for rent you had to pay instead) in the last month alone. PLUS, it will mean a smaller mortgage when you eventually do buy.

You are looking after your family (financially) to the absolute maximum degree you possibly could be by not buying now. Good job. Now don't blow it by doing something silly.

nevaeh-2die-4

this sounds good.

has anyone been aproved of this?

its very hard to get a loan from a bank these days,

im waiting for boi to get back to me but i know deep down that i will be turned down.

Wondering1

I am wondering does any1 have any idea about Cavn Co. Council home purchase Loan?? Has anyone being approved? Or recently applied for it? And how long does it take before you get an answer from them??

cavanmum

hi, don't want to put you off but my partner and i applied for a house purchase loan with cavan county council recently, it took 17 weeks for them to reply to us and when they did we were told we don't earn enough to get a house purchase loan from them. I still feel very angry about this as i make €350 a week from work and my partner earns €400 so how is that not enough as well as this we pay rent of €600 a month. Cavan council is a joke, its all about who you know.

ShadowHearth

cavanmum wrote: »

hi, don't want to put you off but my partner and i applied for a house purchase loan with cavan county council recently, it took 17 weeks for them to reply to us and when they did we were told we don't earn enough to get a house purchase loan from them. I still feel very angry about this as i make €350 a week from work and my partner earns €400 so how is that not enough as well as this we pay rent of €600 a month. Cavan council is a joke, its all about who you know.

How much you applied for? Because me and misses are indentical to your situation and we got easily approved for 90k

cavanmum

HI, WE APPLIED FOR 80K. WOULD LIKE TO COMPLAIN BUT HAVENT A CLUE WHERE TO AS WE WERE FULLY SURE WE WOULD GET THE LOAN SO DON'T REALLY KNOW WHAT THERE PROBLEM IS.

Treehouse72

cavanmum wrote: »

HI, WE APPLIED FOR 80K. WOULD LIKE TO COMPLAIN BUT HAVENT A CLUE WHERE TO AS WE WERE FULLY SURE WE WOULD GET THE LOAN SO DON'T REALLY KNOW WHAT THERE PROBLEM IS.

I'm guessing you're in the capital?

cavanmum

WE LIVE IN COUNTY CAVAN. DIDNT THINK WE WOULD HAVE ANY PROBLEM GETTING THE LOAN FROM THE COUNCIL AS THE BANK SAID OUR INCOME IS FINE FOR A MORTGAGE ONLY WE FOUND IT VERY HARD TO PAY RENT AND LIVE AND COULDNT REALLY SAVE UP €10000 FOR DEPOSIT SO SOON. IF ANYONE HAS ANY ADVICE OR SIMILAR STORIES I WOULD LOVE TO HEAR BOUT IT.

D3PO

Seems to be a good decision by Cavan co council if you ask me.

You earn very little and dont seem to have the min 6400k deposit required to apply for 80k anyway

cavanmum

HI, ACTUALLY IN REGARDS TO COUNCIL HOUSE PURCHASE LOANS YOU ONLY NEED TO HAVE 3% OF THE HOUSE PRICE WHICH IS THE REASON WHY MANY PEOPLE GO THIS ROUTE AND WE HAD THAT AND THE EXTRA FOR STAMP DUTY AND SOLICITORS FEES. WE EARN €37000 A YEAR A LOT MORE THAN MOST I WOULD SAY. THANK YOU FOR UR REPLY THOUGH.

THE PHOTOGRAPHER

I wonder if any person can advise me?
I am looking for a very small mortgage about 25,000. I currently earn 20,000 per year plus another allowance of 5,000. I have saved 15.000 and the purchase price has been reduced to 35,ooo. I would love to buy this house as its great value
I am paying 4,000 rent per year.I would love to know where I might get a loan as many banks do not want to deal with a small mortgage.
I have been in this job for over three years and I no longer have a car loan
THE PHOTOGRAPHER

foxy06

THE PHOTOGRAPHER wrote: »

I wonder if any person can advise me?
I am looking for a very small mortgage about 25,000. I currently earn 20,000 per year plus another allowance of 5,000. I have saved 15.000 and the purchase price has been reduced to 35,ooo. I would love to buy this house as its great value
I am paying 4,000 rent per year.I would love to know where I might get a loan as many banks do not want to deal with a small mortgage.
I have been in this job for over three years and I no longer have a car loan
THE PHOTOGRAPHER

Would u try credit union if u cant get a loan from bank? Is only small amount not really mortgage. Or EBS?

THE PHOTOGRAPHER

Thanks for your reply I am currently talking with Credit Union but a mortgage is better. Happy Christmas

gaius c

So banks won't lend to you but the state will.
Can somebody please tell me when I (as a taxpayer) agreed to become a sub-prime mortgage lender?

Ella73

I rang around today about this loan. You have be turned down by 2 banks to apply for the loan. The only problem is that you can not apply for a loan with a bank unless you have the 10 percent deposit in your account and you meet the lending criteria, the mortage application can not be processed otherwise therefore you can not apply to even be refused in the first place. Is it just me or does this make sense to anyone, surely if you are applying for this loan you can not afford the 10 % deposit hence the 3 % on the house purchase loan and you also can not meet the bank criteria otherwise you would not be applying for the house purchase loan in the first place :mad:

davet82 wrote: »

I rang fingal county council yesterday and they told me the affordable housing scheme is finished there.

The person I was talking to informed me of the House Purchase Loan Scheme. You basically apply for a mortgage from a bank, (which will turn you down) and then you go back to the council who will then give you the loan.

Sounds a little too good to be true? Has anybody here availed of this scheme? Is there some kind of waiting list?

Let me know, thanks

davet82

Ella73 wrote: »

I rang around today about this loan. You have be turned down by 2 banks to apply for the loan. The only problem is that you can not apply for a loan with a bank unless you have the 10 percent deposit in your account and you meet the lending criteria, the mortage application can not be processed otherwise therefore you can not apply to even be refused in the first place. Is it just me or does this make sense to anyone, surely if you are applying for this loan you can not afford the 10 % deposit hence the 3 % on the house purchase loan and you also can not meet the bank criteria otherwise you would not be applying for the house purchase loan in the first place :mad:

its for lets say you messed up with a credit card a few years ago and you are making the bank nervous but you are PS worker with the deposit, the council will give it to you (wouldn't hold my breath in todays climate) but its only a money collecting exersice that will take about 2 years for your application to be proccess and for them to write back and tell you no.

If you meet the criteria for a mortgage a bank should give it to you anyways, if they refuse you its probably with good reason i reckon.

D3PO

Ella73 wrote: »

I rang around today about this loan. You have be turned down by 2 banks to apply for the loan. The only problem is that you can not apply for a loan with a bank unless you have the 10 percent deposit in your account and you meet the lending criteria, the mortage application can not be processed otherwise therefore you can not apply to even be refused in the first place. Is it just me or does this make sense to anyone, surely if you are applying for this loan you can not afford the 10 % deposit hence the 3 % on the house purchase loan and you also can not meet the bank criteria otherwise you would not be applying for the house purchase loan in the first place :mad:

if you cant save 10% of the purchase price you cant afford to buy simple as that. Why people try and fit a square peg in a round hoel is beyond me.

Oh id advise you throw that 2004 calandar out aswell, were in 2013 now things are different thankfully.

Ella73

Anyone can state the obvious but you missed the point. You are applying for a loan which requires a 3 % deposit why would you be applying for that loan if you need 10 % to do it. I am well aware its 2013 and the country is in a mess due to a number of small minded black and white non thinkers like yourself, with no soloutions for anything.ps Did you ever here the saying no one likes a smart a..

D3PO wrote: »

if you cant save 10% of the purchase price you cant afford to buy simple as that. Why people try and fit a square peg in a round hoel is beyond me.

Oh id advise you throw that 2004 calandar out aswell, were in 2013 now things are different thankfully.

davet82

Ella73 wrote: »

Anyone can state the obvious but you missed the point. You are applying for a loan which requires a 3 % deposit why would you be applying for that loan if you need 10 % to do it. I am well aware its 2013 and the country is in a mess due to a number of small minded black and white non thinkers like yourself, with no soloutions for anything.ps Did you ever here the saying no one likes a smart a..

soloution is to apply with an insuffienct deposit, you'll get get two refusals very quickly just ask for them in writing?

i dont know anybody getting approved for one of these loans btw

cocoa123

I know bank calculates mortgage limit = 3 x annual income amount, what limit coco applies on the annual earnings? Can an applicant get higher mortgage from coco than from banks?

Sparkles:)

cocoa123 wrote: »

I know bank calculates mortgage limit = 3 x annual income amount

That's not strictly speaking true, AIB said they could only pre approve me for 31,000 while I'm on 27,000 with one child.

AIB base their criteria on

Income less tax per month, less 1,300€ for living expences (this is the amount they are using at present had the meeting wednesday), less 250€ per child.

The remainder less loans, credit cards etc is what you have left to reasonably pay a mortgage.

For me, because that worked out at less than 200 euro, it meant that the mortgage I could have was quite small.

They don't take into account your ability to pay rent, (which I've been paying, 700 a month for 3 years).

I'm just trying the COCO because they do take into account your rent paying ability etc.so I hope they will approve me and approve me for higher than the bank did.

---

To anyone that filled the form, there's a section about the property to be mortgaged requesting the house value and address etc.

Excuse my ignorance, but am I meant to begin the process prior to getting a mortgage or is there a list of council properties that you select from or how does it work...

It'd be easier to get blood from a stone than info from the council.

cocoa123

Sparkles:), are you applying to coco schema with this AIB 31K mortgage approval as evidence of refused bank application?

Sparkles:)

It was pre-approval, when I met with the mortgage rep she said that Dublin would say I didn't meet the criteria so she's going to give me the letter stating I don't meet their criteria.

cocoa123

Sparkles:) don't meet their criteria for higher amount? May I ask what amount did you ask from them? I asked 180K from AIB and they could offer 60K only and wanted give a letter on this. But my broker said I'll need a formal mortgage refusal from the bank and letter won't be sufficient for coco. Was it wrong?

Sparkles:)

I couldn't say yes, because to be honest I'm just going by what the woman in the bank said. However she did say that her sister had gotten a mortgage from the scheme, so I'd imagine she knew her stuff.

Sparkles:)

Oh also I was chancing my arm and just went in to see if they could give me anything, ball park figure was 95k when she asked.

cocoa123

Thanks

allabella

Is this scheme running in cork at all? Either city or county councils?

Sparkles:)

allabella wrote: »

Is this scheme running in cork at all? Either city or county councils?

Yup I'm located in Cork can only be used for houses outside the city bounds.

I used the contact us feature on the cork coco website and got my forms etc within 24 hours

allabella

thanks Sparkles, does the house have to be a newly built home?

Sparkles:)

allabella wrote: »

thanks Sparkles, does the house have to be a newly built home?

As far asi can make out it applies to homes built after 2002 - but I'm open to correction

there's also an option to apply for a mortgage to build on land you own.

loki7777

@Sparkles did You get after all the loan from council - I am in pretty much same situation - looking for a house and i was refused mortgage from 2 banks. But looking on council form You have to by very specific to house You wanna buy - but what if that house will be gone before we get any answer from council?
Pay deposit and than lose it if it all fails?

allabella

Hi loki7777 I applied for a Council loan about 5 weeks ago, it was rejected as basically i asked for too much money - The AHP (Affordable Homes Partnership) in Dublin wrote to my City Council and said that 'The net income to loan ratio is incompatable'. So i reapplied again with a lesser amount request and am now waiting on a response. Im crossing everything that the application is approved this time! BTW i had to go back to the 2 banks and get 2 new refusal letters in the new amount and have newly up to date bank statements etc, its like a new application all over again. Oh when i applied the first time it took 4 weeks to hear that i was refused

loki7777

But what about a house did You have to have a specific house to buy or how does it looked like(just the money You were going to get).
And second thing - did You had in the letter from bank the amount of money You were going to loan? My is just simple that we didn't meet the requirements(explaining which one exactly) and that we were refused mortgage.
Waiting for second letter from BOI and will se how it will looks like.

allabella

i needed to have 2 refusal letters from 2 banks or building societies with the exact amount of the mortgage that i was refused. The first time i applied to the Council i had 2 refusal letters both detailing the amount of €150000. The second time i applied to the Council i had 2 refusal letters both detailing the amount of €127000. And i did not have to write a specific house on the COuncil application form, but i did print out details from DAFT of some of the houses that i am interested in, i will let you know how my new application goes. im not holding out much hope as as far as i know my local Council only approved 4 loans in total this year.

Sparkles:)

Hi loki7777 I haven't applied yet. I'm waiting for the new year. The new mortgage requirements will allow me all for more and I'm due a pay increase.

Regards which house you any, I emailed my local authority and they said that it's fine to look for approval in principle but once approved you must find the house within 3 months

Sono

Hi folks just having a look at this myself at the moment, just curious if the calculator the banks use for calculating your mortgage amount differs from the council? If anyone could help that would be great, looking to apply for approx €210k with joint annual income of around €55k just not sure how it works, thanks for any help.

loki7777

Just a small question.
How long does it take to move in from getting the provisional approval from council(we get the letter after 8 weeks from Dublin decision)?
We have valuation done, now just survey and should be done(my job, home insurance quotation also done) but my solicitor told me it can take another 4 months(!!), other one said 4 weeks(but we couldn't take him as he works from council).

stac

@Loki7777 Can i get some information off you im after starting the process of applying for this loan can you tell me how long the process took, any help would be appreciated

allabella

Hi stac. from start to finish the process took about 2 years for me. Going the Council route is a lot slower than the bank route but the interest rate is a lot better - 2.5% I think worth the wait

LauraAaron

Hi just wondering if anyone has been approved for a home purchase loan recently? I am in Donegal and about to start the process and was wondering if anyone has an information about it that isn't on their site? Thanks 😊