Steady uptake of programs that help bridge the gap for pressured homebuyers

There is a steady uptake by homebuyers of a program that funds people to buy their own homes.

About 750 new buyers have been admitted to the state’s First Home program since it started six months ago.

It comes as property prices have been increased for the program to ensure more people qualify.

The €400 million fund will help first-time buyers bridge the gap between mortgage, security deposit and new home price.

As part of the program, the state provides an interest-free share of up to 30 percent in the house.

In an update, Housing Secretary Darragh O’Brien said 750 buyers in 23 boroughs have been approved by the program and have received certificates of eligibility. A joint application is counted as one buyer, not two.

A further 254 applications are currently being processed, with approvals expected in many of these cases shortly.

A total of 2,433 potential buyers have expressed interest in the program. This is made up of 1,089 individual buyers and 1,344 couples.

The average purchase price for completed purchases is €370,000.

And the average support that First Home provides in these cases is €71,000. This corresponds to 19 percent of the average purchase price.

Most of the certificates issued were for buyers in Dublin, Kildare, Meath and Wicklow, with the remaining third spread across 19 counties across Ireland.

Mr O’Brien said: “The First Home Scheme is becoming increasingly successful and I am pleased to see that over 1,000 applications have already been approved or are in progress.”

He said he’s confident the program will see heavy take-up this year.

It is expected to cover the purchase of 8,000 new homes over the next four years, Mr O’Brien said.

The First Home program aims to fill the gap for those whose incomes are too low to get a mortgage large enough to buy their first home.

The shared equity program was launched last July and was funded by the government with 400 million euros.

The three main banks have joined the program, which envisages the state providing an interest-free share of up to 30 percent in the house.

Under the program, the purchase of new housing will be funded jointly by the state and participating mortgage lenders.

AIB, Bank of Ireland and Permanent TSB are involved in the scheme and other lenders are expected to sign up.

The flagship ‘First Homes’ program under the Government’s ‘Housing for All’ strategy will have no income limits on those who apply.

However, there are restrictions on the value of properties that qualify for the program in each local government area.

Last month, Mr O’Brien released the results of the first of his scheduled semi-annual reviews of the price caps applied to qualifying homes.

Its first review will result in increases of up to €75,000 in 30 of Ireland’s 31 parishes.

The changes mean thousands of first-time buyers will now qualify for the program.

Depending on the location, the new upper price limits will include houses with prices of up to 475,000 euros in the regulation.

The verification also means that any new home valued at €325.00 or less is eligible for the scheme, regardless of its location in Ireland.

The new price caps have been in effect since the beginning of this month.

The program caters to the squeezed middle, those who get caught paying sky-high rents.

These people are making too much to qualify for public housing, but too little to qualify for a mortgage in a housing market where values ​​are once again near Celtic Tiger highs.