Government Housing schemes

Hey Everybody

I just have a quick question. I am looking to get a house and i have been pretty much told by the banks that they are not giving out mortgages.

I have about 15 grand saved and i am looking at a government scheme . Thing is i know that i might sound choosey but i dont want to live in an apartment .

I dont know but somebody explained to me that there is a scheme were i can choose a house up to a certain value 300 thousand i think and the government will pay half of that?

Is that correct ?

Any advice would be great .

Dre

dollydrops

Have you gone to a mortgage broker?
Just wondering because my myself and my partner went to a mortgage broker a couple of months ago and we got pre approved the broker only rang me the other day asking me are we ready to go ahead but we're not.

Anyway have a look at this website is this what you are talking about
www.homechoiceloan.ie

I went to one yes. But i am buying alone and there is nothing i can do about it .

spockety

Deleted User wrote: »

I went to one yes. But i am buying alone and there is nothing i can do about it .

Banks are giving out mortgages, they are just being more prudent about it.

If a bank refuses you a mortgage, it's because they believe you do not have the capacity to repay it, or you represent a high risk.

How much do you earn, and how much are you hoping to borrow?

The Home Choice Loan scheme is essentially a sub prime mortgage (i.e. they are giving mortgages to people who the banks don't think can afford one).

I would strongly urge you to consider whether or not you can really afford to take on a huge mortgage. Property prices are falling, and large drops are forecast for this year in many areas, so if you wait another 12 months there is a good chance a mortgage on the kind of property you are looking for will become affordable enough for you that a normal bank will lend you the money.

I was told by the banks that i would have to be a "doctor or a lawyer" to get a mortgage. If i were to get a mortgage on my own, i wont actually be able to afford anything .

So i need to look at the government schemes .

mrgaa1

Deleted User wrote: »

I was told by the banks that i would have to be a "doctor or a lawyer" to get a mortgage. If i were to get a mortgage on my own, i wont actually be able to afford anything .

So i need to look at the government schemes .

Well this type of "insult" needs to be brought to the governments attention. Contact your local councillor, TD, senator and raise hell. Contact your local newspaper, TV station and lets get this out into the open. Is Ireland open for business for everyone or closed to the elite? I know of one guy who has went to banks and was told no, went to the government scheme and its full so where does he go now? People are trying to move on and are hitting a block wall all the time. Lets get this going.

SkepticOne

mrgaa1 wrote: »

I know of one guy who has went to banks and was told no, went to the government scheme and its full so where does he go now?

Easy: he waits for the prices to come down further as they must.

gurramok

Deleted User wrote: »

Thing is i know that i might sound choosey but i dont want to live in an apartment .

I dont know but somebody explained to me that there is a scheme were i can choose a house up to a certain value 300 thousand i think and the government will pay half of that?

What you're talking about is the Affordable Housing Initiative where you can get a house thats advertised by the council but buy it straight from developers. (this is being replaced by Homechoice(sub-prime) & Equity schemes

Regarding apts, its pretty much a case of no choice. DCC are offering 85% apts with a slightly lower percentage for the other urban authorities so to get a house, its extremely difficult on your own under a govt scheme and my view is that lots of money counts if you throw it at them(big savings), its called persuading them

spockety

Deleted User wrote: »

I was told by the banks that i would have to be a "doctor or a lawyer" to get a mortgage. If i were to get a mortgage on my own, i wont actually be able to afford anything .

So i need to look at the government schemes .

Hmm. I'm sorry, I just don't buy it. I'm tired of people throwing out blanket statements like "the banks just aren't lending!". I know for a fact they are.

What are your personal circumstances..
i.e. How long are you in your present job?
Have you got a 100% clean credit record?
How much do you earn?
How much are you looking to borrow?

AIB are giving 92% LTV on houses, which means the max you can expect to borrow if you have 15 grand deposit in place is 172k. Are you looking for more than that? If so, you won't get it unless you save up more of a deposit. To borrow 172k, you probably need to be earning in the order of at least 45k a year.

The only reason you were given the 'doctor or lawyer' line is because you are probably attempting to borrow more than you can actually afford, and unless you're a professional as above with expected significant increases in salary over the next few years, you are not worth betting on for the banks.

I would say though, that even forgetting your earnings, you will not be able to borrow more than 172 grand for a house if you only have 15k in place as a deposit.

I went to the bank who said i would get a mortgage but it wouldnt be enough to afford a house.

so i went to Rea mortgages who also confirmed there is no point getting into it as i wouldnt get anything.

i went to another broker on a friends advice. He took my details and he said there is no point trying as i wouldnt get anything .

My credit is good

pathway33

Deleted User wrote: »

I was told by the banks that i would have to be a "doctor or a lawyer" to get a mortgage. If i were to get a mortgage on my own, i wont actually be able to afford anything .

So i need to look at the government schemes .

you should be able to easily afford a 1 bed apartment in balbriggan or ongar dublin 15. lots of sellers there i'm sure would take €150,000.

what is it they say? cut your cloth to meet your ...something

Agent J

dollydrops wrote: »

Anyway have a look at this website is this what you are talking about
www.homechoiceloan.ie

Ah! No!

The governments attempted entry in the subprime market.