County council housing loan

dclewis

I was looking on the kildare and fingal county council websites last night and came across information for a loan.
It says that you can get a loan of up to 220000 to buy a house or build one. There are t&c's but they are easily enough met. The main one is that you have to have been turned down a mortgage by at least 2 banks or building societies.
It is also not a housing scheme.

My question is do they still do this due to the recession as both me and the wife are in low paid jobs and this would really help us.

Thanks in advance.
David

Victor

You should check with them that the information is up to date.

Councils have issued loans in the past, but I don't know what the current situation is.

The_Conductor

dclewis wrote: »

I was looking on the kildare and fingal county council websites last night and came across information for a loan.
It says that you can get a loan of up to 220000 to buy a house or build one. There are t&c's but they are easily enough met. The main one is that you have to have been turned down a mortgage by at least 2 banks or building societies.
It is also not a housing scheme.

My question is do they still do this due to the recession as both me and the wife are in low paid jobs and this would really help us.

Thanks in advance.
David

David-

The schemes are still in existence nationwide, however availability depends entirely on the circumstances of individual councils, and indeed there has been revisions to availability rules (as per the directives from the Dept. of the Environment).

In general-

You must have a good credit record, documented proof of the ability to save on an ongoing basis and no other o/s debts
You can borrow up to EUR285k
Maximum borrowings cannot exceed 90% of the purchase price of the property
No loans are applicable for any purpose other than the initial purchase of the property (i.e. you cannot take out additional loans guaranteed on the property for any purposes whatsoever)
You must earn less than 50k as an individual or 75k as a couple
The loans (if available) are annuity loans with a repayment term of 15, 20 or 30 years
Both variable rate and fixed rate loans are available (current rates are 3% variable, 4% fixed)
You must have been refused a mortgage by at least one bank and one building society.
Repayments must be less than 35% of *net* salary
If employed- you must be in your current job for a period of greater than 2 years and provide salary certs etc
If unemployed- a specific declaration must be supplied by your local CWO documenting your ability to repay the loan
You have to live in the property as your PPR (Principle Private Residence) for the period of the loan (unless the loan is discharged before term, and only with the advance consent of the mortgator.)

There have been various revisions to the scheme since the October 2010 documents up on Fingals and Kildare's Co.Co. websites- make sure you have the most uptodate information before doing anything.

tommyh1977

Hi, we have applied to Limerick County Council for a loan, but the approval process is taking forever. We applied last week of November and are still waiting on news. The application has now to be processed by Dept of Environment & Local Government first with a recommendation made to the council who then have the final decision. The rate is good, less than 4% but as i say its a slow process.

The_Conductor

tommyh1977 wrote: »

Hi, we have applied to Limerick County Council for a loan, but the approval process is taking forever. We applied last week of November and are still waiting on news. The application has now to be processed by Dept of Environment & Local Government first with a recommendation made to the council who then have the final decision. The rate is good, less than 4% but as i say its a slow process.

Hi Tommy-

Let us know what happens- it will be helpful to others in here.

Best wishes,

Shane

snubbleste

Are these local authority loans available only for those with a housing need ie on a social housing list? Can someone provide a link.

Are these any different to the controversial HomeChoiceLoan scheme?
http://homechoiceloan.ie/Frequently-Asked-Questions.aspx

foxy06

There are two different types of loan one you can get 97% of the price of the house and the the max purchase price is 220000. This is called the Home Purchase Loan.

The other is called the Home Choice Loan and is as smcarrick said above.

Its near impossible to get any information about the first one online but if you go to your local county councils website and search home purchase loan you may get information. Otherwise ring the housing section of your local council.

http://www.westmeathcoco.ie/en/ourservices/housing/promotinghomeownership/housepuchaseconstructionloan/

Heres one from westmeath coco. Dublin one gives different info!!

L1011

smccarrick wrote: »

You must have been refused a mortgage by at least one bank and one building society.

Isn't there only one "building society" left with a brand that's likely to vanish?

tommyh1977

Well as promised here is the update on our loan application....................no update:mad::mad:. Council say file has to be processed by Department Of Environment & Local Government. We got a councillor to look into our application as we were told a decision would be reached within 3-4 weeks, however we are now going into week 13!! The lady who is handing our application told him the civil servants in the above Department are a law to themselves and are in no hurry processing applications......not much good to us when we might loose the property we can afford:mad:

What's really p***ing me off is we paid an application fee of € 50.00 and would expect a timely response in light of this fee. Bet you if we approached the council claiming to be broke and unable to support our kids we would have a nice cosy council house by now, really frustrating, we want to borrow and pay back the full amount with interest without any subsidy from anyone.

To anyone considering this route for financing your purchase be prepared for unending frustration!!!

Rant Over

Rant Over

pawnacide

Just a thought and maybe not the right place as not of much use to OP, but are these council loans a good idea ? . If you can't get a loan from a bank should you be getting one.

Aren't they a legacy from the boom years as a means of Councils getting in on the property boom and providing finance for people who can't get a mortgage elsewhere. I fail to see the difference between this and offering sub prime mortgages because regardless of the interest rate and the intention that is what these council loans are. I for one would prefer to see councils serving the communities they were set up to look after and get out of the property finance game.

I know this may seem harsh to the OP but it just seems odd to me that given the state of the public finances and the property market Councils are still offering these loans.

foxy06

I think the point of them in the beginning was to get people out of council housing that had the means to pay a mortgage but couldn't get one because of a bad credit history or not long enough in their job. Point was to free up houses for people waiting on the lists that definitely can't house themselves.

Feel sorry for you op but I seem to remember a similar thread where a person was waiting 17 weeks only to be refused. Have a look for it. Poster may be able to help.

The_Conductor

OP- whoever you were talking to in the council who is suggsting that the delay is civil servants being a law unto themselves- clearly has no cognisance of the financial mess that this little country is in. The reason why all the council loans now have to be approved by the Department are to try to target very limited funds in specific areas. Cluid and the other housing organisations have signed up to this approach. There is nothing wrong with your application- the issue is that kitty is limited, and the area you're seeking a council loan for is not Priority 1 or 2.

Regards,

SMcCarrick

tommyh1977

Hi all, I promised I would keep ye posted, in the hopes to help others. Well the saga continues and this has got to be one of the most stressful things i've ever undertaken.

End of April this year we got approval for 94K with 6 months to draw down. We found a house 8 weeks ago. An investment property in the hands of a receiver and selling for 95k, approx 50k below its current market value and 150k below its original 2007 purchase price.

We put our deposit down and started the process of getting the loan sanctioned. One of the conditions of the loan is the property needs to be approved by Council Engineer. There is some cracking to internal wall skimcoat at ceiling level, this the result of shrinkage of the first floor joists as they dried post build. I had a builder estimate 300 euro to repair same and verify the plaster was now finished cracking and peeling. When I was happy it was superficial cracking I got the council engineer to inspect the property.

Guess what, he didn't approve the property, requesting the ground floor be replastered, Wiring certified and painting and landscaping to be carried out to the house. Before this decision the council had asked me to get an independant engineer to give a structural report on the property. The house passed all his inspections with flying colours and he found no structural defects. He gave same reasons for plaster cracking and verified repairs to the plaster would have no structural consequence. The wiring I got certified and it passed with flying colours.

The engineer to me, and I am willing to be corrected, seems to have created an insurmountable obstacle for us to prevent drawing down the loan. How can we replaster and paint something that we don't own? We have explained that we have budgeted the repairs, have every intention of implementing them before moving in, and used the cracking to negotiate the best price on property. Everything else was in order including BER cert and valuation. We are currently arguing our point through a local councillor in the hopes we might get it through, but every day i'm loosing confidence.

So here we are, out of pocket about 1k with solicitors and engineers and no nearer a house. Does anyone know once a loan is approved, is that money allocated for the 6 month drawdown period, or is it a case of kitty might have dried up since approval? An honest "sorry we don't have any money for you" would be more appreciated.

The_Conductor

Tommy- Limerick council has had its budget from central government cut by 1.8 million- in recognition of the fact that just 59% of households liable to pay the 100 Euro household charge have done so. Recent council meetings have mentioned turning off street lights and delaying any possible expenditure (to pretty petty levels)- chat to your local councillors, they can fill you in.

The money is not there. Its not entirely the councils fault- they were not anticipating being held responsible for collecting the household charge in their area, or being penalised when people didn't pay.

Talk to your local councillors- don't blame the engineer, hes just doing his job.

tommyh1977

I don't blame the Engineer, he's is exactly doing his job as most likely instructed from higher up the food chain, i.e. create an issue so the loan can't be sanctioned. As I said I would have appreciated a simple explanation that they don't have the funding available, rather than putting me through the unnecessary expenses of Solicitors, Valuation, Engineer etc.

The_Conductor

Tommy- very often its not 'create an issue so the payment can't go ahead'. Its more the case that in the boom years the rules were ignored, in the rush to shovel money out the door. Now that money is tight (dash non-existent) very often its simply that the rules are being followed, full stop. Keep in mind the normal standards for Council financed property are far higher than building regulations (which is why builders had no interest in bidding for this type work, or supplying social houses, during the boom- the quality demanded would have vastly exceeded what they were currently working on).

You may have an engineer say the defects are cosmetic- sure fill them in with a bit of mortar...... Perhaps they are- but it doesn't exactly bode well for a new build for cracks to appear willy nilly.

When I thought I was moving- I had surveys done on 3 different properties in the Portlaoise area (and checked with the council for compliance certificates etc). I probably spent 3 or 4 grand- and never moved- and am so thankful that I didn't now- as the mortgage probably would kill me.

I genuinely think its time to ask the engineer to sit down, in a non-confrontational manner- and to go through things with you. What would he be willing to sign off on- and how does this differ from the current proposition in front of him. Is money available? If not- when (if ever) will this scheme be restarted. Are more people in similar situations locally? Etc. etc. etc. You don't know the lie of the land- you need a better feel for the situation- than looking purely at the house and wondering why he won't sign off. If he is unable to sign off- you are wasting your and his time by pursuing this matter.

It is sad that we are in this position- but things are going to get a hell of a lot worse, before they get one iota better.

tommyh1977

Well here's my update, loan was finally approved and we have signed contracts to buy our family home. Thanks for all the input and help.

foxy06

tommyh1977 wrote: »

Well here's my update, loan was finally approved and we have signed contracts to buy our family home. Thanks for all the input and help.

Great news for u tommy. Which loan was it the home choice or the home purchase?

tommyh1977

It's official title is Housing Annuity Loan. Basically we found our house, got it approved by the council and then drawdown the fiinance in a similar manner to a bank mortgage.

nessabeaut

Hi Tommy i am in the middle of the same process as yourselves but i am buying through the tenant purchase scheme. I originally applied for this in may and stil no closer to getting approved. At the moment its with the hsca and have been told it could take up two months before it comes back then it has to go to the credit community.

Once you got approved did it take long to finalise?

tommyh1977

I feel your pain, it took me 12 months to get to where we are today and to be honest i'm shocked we got this far, I believe it's all down to a good local councillor. We applied 12 months ago and finally got approval in April. We found a house 1st week of July and only last Friday we signed purchase contracts. It was one stumbling block after another and one of the most stressful and annoying tasks i've ever undertaken. Unfortunately I dont think a councillor would be of any benefit at this stage, but when it comes back to your local authority bombard them with representation from a local councillor. Best of luck

nessabeaut

I have seeked a councillor to look into it for me. But like you said it probably pointless until it comes back to the council. They are very very vague with information thats what is annoying me with the process. Its week after week with no updates! I hope it wont take as long as im already in the property just looking to get the mortgage for it!!

Thank you for your reply and best of luck in your new home.

foxy06

nessabeaut wrote: »

I have seeked a councillor to look into it for me. But like you said it probably pointless until it comes back to the council. They are very very vague with information thats what is annoying me with the process. Its week after week with no updates! I hope it wont take as long as im already in the property just looking to get the mortgage for it!!

Thank you for your reply and best of luck in your new home.

Nessa will u keep us informed of updates. I'm doing the same as you but applied to the bank for the loan. Have been at it for months now and would really like an answer as the tenant purchase scheme is finished at the end of the year and I may need to go to the council yet. Very frustrating not hearing anything.

nessabeaut

foxy06 wrote: »

Nessa will u keep us informed of updates. I'm doing the same as you but applied to the bank for the loan. Have been at it for months now and would really like an answer as the tenant purchase scheme is finished at the end of the year and I may need to go to the council yet. Very frustrating not hearing anything.

If you are getting the loan through the bank it shouldnt take as long... six-eight weeks i thought.

foxy06

nessabeaut wrote: »

foxy06 wrote: »

Nessa will u keep us informed of updates. I'm doing the same as you but applied to the bank for the loan. Have been at it for months now and would really like an answer as the tenant purchase scheme is finished at the end of the year and I may need to go to the council yet. Very frustrating not hearing anything.

If you are getting the loan through the bank it shouldnt take as long... six-eight weeks i thought.

Yeah it should but we are running into problems all the time and went through a broker which has slowed things dramatically from what I can tell. I just don't think we will get it from the bank so I'm preparing for council now.

nessabeaut

foxy06 wrote: »

Yeah it should but we are running into problems all the time and went through a broker which has slowed things dramatically from what I can tell. I just don't think we will get it from the bank so I'm preparing for council now.

They should could back to you with a response shortly. Maybe contact them to see what happening.. If it happens that you have to go through the council have all the information ready download form from site to see what you need.

tommyh1977

nessabeaut wrote: »

foxy06 wrote: »

Yeah it should but we are running into problems all the time and went through a broker which has slowed things dramatically from what I can tell. I just don't think we will get it from the bank so I'm preparing for council now.

They should could back to you with a response shortly. Maybe contact them to see what happening.. If it happens that you have to go through the council have all the information ready download form from site to see what you need.

I agree, the council forms take forever to complete, think it took me 3 weeks to get it all together. I had council forms filled before getting rejected by bank and building society. Bear in mind you need a refusal from both before applying to council.

foxy06

Well I kind of have refusal from ICS building society and AIB as they both said to me that they dont do council tenant purchase scheme loans. I'm doing all this through a broker and I'm contacting him all the time but it is still taking forever. I have all the stuff I need for the council but will probably be out of date now as I first got it back in August when I started all this.

flintash

Lads, what do you mean by 'refusal from banks'? In my situation It was that I asked for 110k, but ISC wouldn't give me that much, just 60k. I mean , I dont consider this as being refusal to lend, just that I dont want to buy house for 60k which means either old shoebox in bad part of town, or old house 100 miles from work ,schools, etc.

tommyh1977

The way the loan officer defined refusal to me was a point blank "NO". I think once they offer you anything then that's considered as a non-refusal.

flintash

tommyh1977 wrote: »

The way the loan officer defined refusal to me was a point blank "NO". I think once they offer you anything then that's considered as a non-refusal.

Hold on then! how the heck I buy the house then? I have good permanent job, which guarantees me some sort of mortgage (like 60k), so either go miles away for that price, I get some sort of temporary job that entitles me to council loan of upto 200k :eek: Seriously?

tommyh1977

flintash wrote: »

Hold on then! how the heck I buy the house then? I have good permanent job, which guarantees me some sort of mortgage (like 60k), so either go miles away for that price, I get some sort of temporary job that entitles me to council loan of upto 200k :eek: Seriously?

I'm only just telling you what I had to go through, councils vary from one to the other. As I see it, Banks, Building Society, Council will all try to find a way to hold onto the cash. A temporary job certainly wouldn't give you anymore entitlement to 200K than a full time job. The application is assessed in the exact same manner as a mortgage, in my case even more forensic than the mortgage process. It's still granted on the borrowers long term ability to pay. When I applied to the banks they were refusing everyone at the time, even though my local mortgage officer in branch tried to show my good banking history, and make a recommendation, it wasn't enough. I only got 95K from Council and it was hard work to get it so I doubt a temp job would get 200k.

nessabeaut

foxy06 wrote: »

Nessa will u keep us informed of updates. I'm doing the same as you but applied to the bank for the loan. Have been at it for months now and would really like an answer as the tenant purchase scheme is finished at the end of the year and I may need to go to the council yet. Very frustrating not hearing anything.

My application is with the credit committee at the moment should hear back from them in the next few days. I got a councillor involved also got email address for the hsca and ask them for updates every week. Its been slow but being in contact with them has helped with the process instead of before where i was being told nothing.

foxy06

nessabeaut wrote: »

My application is with the credit committee at the moment should hear back from them in the next few days. I got a councillor involved also got email address for the hsca and ask them for updates every week. Its been slow but being in contact with them has helped with the process instead of before where i was being told nothing.

Nessa there is a new scheme from next year it was in the independent last Saturday. They will be offering tenants between 40 and 60% off the value of the house. Just in case your interested

ladyeaston

Hi , get onto the county council web site and down load the forms and I would tell you go for an annunity loan, check with your local TD.

ladyeaston

hi do you have the shared ownership with the co co

foxy06

ladyeaston wrote: »

hi do you have the shared ownership with the co co

I don't think anyone mentioned shared ownership. That's not even available anymore.

eirewhite

Hi all, delighted to hear OP got sorted.
I am starting the same (long process) by the sounds of it.
I wonder could anyone who has been through it, or are well up on the topic tell me if I am in a good place or not as regards meeting the criterea.

I have applied for a house purchase loan off Laois county council. Basicly where im at right now is I have gathered up all documentation i.e. Payslips, bank statements, loan statements, p60, salary cert, savings statements etc etc along with complete application form and fee and im ready to post away.
My story is im in full time permenant employment for exactly 2years this month, my partner is unemployed and recieves a small jobseekers benefit payment. We have 2 kids under the age of 3 and we are currently renting in laois paying 530 p/m
I earn 32000e per year gross subject to a further rise in january and recieve bonuses also, which are garanteed yearly. I have a letter from my employer included in the application which details all of the above. Between us we have about 10k in savings, some of which was a gift from family (again documented with a signed letter) and I have a credit union loan of 2k outstanding. I also included with the application a credit report I got from the irish credit beauro which is just basicly blank (i presume this means I have no bad credit on my history)

we post everything away on friday and I am just wondering how does that sound? Anyone here been refused? Anyone been accepted?
We didnt really specify an amount or specific house on the forms as the lady in the housing department told us we could be approved in principal for an amount and then pick a house. However she did put our details through the mortgague calculator and said best case scenario we would be approved for 87k.
Also I did however include the brochure for a house for sale with a guide price of 100k

thanks all in advance,

Tom

user37

Just wondering if there is any update to how you got on as i am considering applying for this also

eirewhite

user37 wrote: »

Just wondering if there is any update to how you got on as i am considering applying for this also

no update for me, we were told we should hear back mid september. Im hopeful and just patiently waiting at the moment.

casey80

Eirewhite, any good news about progress of your application?
I'm thinking about applying for that loan as well and I see that one of the main criteria is having been refused a mortgage by two lenders. At the same time I don't quite understand how can one be approved by council and at the same time refused by the banks as lending criteria are pretty much the same according to DCC website?
http://www.dublincity.ie/Housing/HomeLoans/Pages/HomeLoan.aspx

The_Conductor

Banks and other lending institutions put all mortgage proposals to a credit control committee that meets on a weekly basis- so even an 'approval in principle' can be turned down, after the fact (as it were).

Strictly speaking- the rules governing the loans are similar- however it doesn't preclude lenders having additional rules- and/or a stricter interpretation of the rules- than do the county councils.

Put your best foot forward- you've nothing to loose- but it can be a long and arduous process- and nothing is guaranteed.