State scheme now available to buyers of second-hand homes

From the Irish Independent, Charlie Weston writes that the Home Choice scheme is to be opened to first-time buyers of second-hand homes.
If it works correctly, this should be a boon to qualified would-be buyers, who like many others, have been unable to secure funding for a purchase, due to the crazy restrictions being put on lending by our cash-starved banks. Article underneath:

A State mortgage scheme for those who cannot get a home loan from the banks, and which has been criticised as sub-prime lending by the Government, is to be extended to second-hand homes. Originally, the Home Choice scheme only applied to new homes.

It will still only apply to first-time buyers, but they will no longer have to buy a new home.

Housing Minister Michael Finneran said the scheme was being changed to reflect the fact that most first-time buyers were buying second-hand houses. He insisted the change would have no implications for the Exchequer.

Under the Home Choice Loan scheme, the Government will lend up to 92pc of the value of a home to an individual buying a new house, provided they are a first-time buyer and earn in excess of €40,000 a year.

They must be in permanent employment for at least two years, and be able to prove that they have been unable to secure a sufficient mortgage from a bank or building society.

The loan will be at the commercial variable lending rate and the risk of each loan will be assessed using the same grounds that banks use.

However, there has been a poor take-up of the scheme. The minister said this week that half of all first-time buyers were buying second-hand houses.

Hopefully this might help sellers and buyers in what is a very stagnant market.

www.pfq.ie