A long-awaited affordable housing scheme is set to be rolled out in the coming weeks, after delays held the scheme back.
The scheme is designed to bridge the gap for eligible purchasers between their deposit and mortgage.
The First Home shared equity scheme is set to be rolled out from early July, with €400m funding from the Government, according to the Irish Independent.
It has reported that the three main banks have signed up to the scheme which will see the State providing an interest-free stake of up to 30pc in the home.
The scheme will be targeted at first-time buyers who are seeking to buy a new home but who cannot secure the full amount required.
Consideration will also be given to providing access to other designated groups such as those who have had a relationship breakdown and who no longer retain an interest in a previously owned family home.
The First Home Scheme is a shared-equity scheme that will be provided by the State, in partnership with participating mortgage lenders.
The support provided by the Government and the participating mortgage lenders will take the form of an equity facility, secured by a second charge on the home equal to the level of funding provided through the scheme.
Applicants will be required to maximise their mortgage drawdown capacity to participate in the scheme (3.5 times the applicants’ gross income, from a participating bank, according to the Central Bank’s macro-prudential rules).
It is anticipated that an equity stake of up to 30% (where Help-to-Buy is not available, a maximum of 20% if Help-to-Buy is used) will be available to eligible purchasers to bridge the gap between their deposit and mortgage (combined) and the price of the new home
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