The Local Authority Affordable Purchase Scheme helps people on moderate incomes to buy new homes at reduced prices. New homes under this scheme are located in areas with the greatest housing need and where affordability is an issue. The local authority takes a percentage stake in your home that covers the reduction in price. So, if you buy the home at a 20% discount, the local authority will have a 20% stake in your home.
You must buy back the local authority’s stake after 40 years or if you sell your home, but you can repay it any time before this. This scheme is aimed at first-time buyers, but there are some exceptions.
There is also the First Home Scheme, where the State and participating banks pay up to 30% of the cost of your new home in return for a stake in your home
Your income must be below a certain level. This is calculated by multiplying your gross annual income by 3.5. This figure is known as your ‘purchasing power’ and it must then be less than 85.5% of the market value of the affordable home.
You must have proof from a bank or financial institution that you cannot get a mortgage for 85.5% of the market value of the home. The applicant may not be able to get a mortgage for a number of reasons, for example, because of their age.
You must be a first-time buyer or ‘fresh start’ applicant.
For more Information please visit Local Authority Affordable Purchase Scheme as CitizensInformation.ie