Changes to mortgage scheme to benefit Donegal applicants

MORE people in Donegal will be eligible to apply for a State-backed mortgage scheme for people who cannot get loans to buy homes from banks after the government announced changes to the scheme.

From March 1 the prices of homes eligible for the Local Authority Home Loan scheme and income limits of those applying for a loan are being increased.

Price limits for homes in Donegal that are eligible will increase by €25,000 from €250,000 to €275,000. Income limits for joint applicants will increase to €85,000 and the income limit for a single applicant in Donegal will increase to €70,000.


The Local Authority Home Loan was launched in January of last year as part of the Government’s Housing for All strategy.

The loans can be used for new, second-hand or self-build homes.

The scheme supports creditworthy borrowers who are unable to get finance from commercial banks to buy a home. It means those on more moderate incomes are helped by the State to achieve homeownership.

Speaking after the announcement, Housing Minister, Darragh O’Brien said: “Supporting home ownership is a key objective for this Government and the increase in eligible house prices coupled with the increase in income limits will mean more people in Donegal can access the loan.

“Importantly, building on changes made this time last year we are again increasing the income limit for single applicants so that those earning up to €70,000 who wish to purchase a home can avail of the State backed loan. The ‘Fresh Start Principle’ also applies whereby people who are divorced or separated and have no interest in the family home, or who have undergone insolvency proceedings, can also avail of the loan.

“The changes reflect the reality of today’s housing market and we will continue to keep the Local Authority Home Loan under review to ensure it remains a genuine and relevant support for people in Donegal who want to own their own home.”

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