As a Home Loan Arranger, it's crucial to understand the eligibility criteria and requirements for securing a Local Authority Home Loan. The good news is that if you're getting a loan to buy your local authority home under a Tenant Purchase Scheme, no deposit is required.

However, if you're eligible for the Help to Buy Scheme, you can use this towards your deposit. In general, you'll need to have a deposit of at least 10% of the property's market price or purchase price, whichever is less. Additionally, you must have a satisfactory credit record, as verified by a Central Credit Register enquiry.

To qualify for a Local Authority Home Loan, you'll also need to meet specific income and financial requirements. For single applicants, your gross annual income should be less than €70,000, while joint applicants' income should not exceed €85,000.

Furthermore, you must provide evidence of insufficient offers of finance from two regulated financial providers, such as a bank or building society. You'll also need to demonstrate that you're a first-time buyer or a 'fresh start' applicant.

It's important to note that the Local Authority Home Loan is not available for fresh start applicants looking to purchase their former partner's share of their family home. Similarly, individuals who have gone through personal insolvency or bankruptcy are not eligible.

The Local Authority Home Loan is available to first-time buyers and 'fresh start' applicants, but it cannot be used to purchase a home under the First Home Scheme. For more information on this, you can contact your local authority for specific guidance.

One crucial aspect to consider is that the purchase price of your home under these schemes will be taken into account when determining your eligibility for the loan, rather than the market price. There are also specific conditions if you're getting a loan to buy a home under one of these schemes.

To get an estimate of how much you can borrow and what your repayments will be, you can use the Home Loan Calculator on the Local Authority Home Loan website. You'll also need to demonstrate that you can afford your monthly mortgage repayments, which must be less than one-third of your household income.

If you've already received approval in principle for a loan under the previous limits but haven't yet purchased your home, you may be eligible for reassessment under the increased limits introduced on 1 March 2023. The maximum market values have also been increased, with different limits applying depending on where your home is located. In some areas, such as Carlow, Cavan, Donegal, and others, the maximum market value has been set at €275,000, while in other regions like Clare, Kilkenny, Limerick, and Waterford, it's capped at €300,000.

Overall, understanding the requirements and eligibility criteria for a Local Authority Home Loan as a Home Loan Arranger is essential to securing your dream home. By carefully reviewing these guidelines and working with your local authority, you can navigate the process successfully and achieve homeownership.

Home loan arranger