Q buying affordable house on open market with 2k deposit???

yellowroses

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I have just received a brochure from cork county council with all the houses that were previously affordable housing & are now being sold on the open market. The information on the front of the brochure says if you would like to buy you only need a 2000 euro deposit & then you will also receive 5k moving in allowance. However you must obtain your mortgage from a bank yourself.
How would this work? If the house is 160k & i am only paying 2k where does the rest of the deposit come from? The bank i presume will only give a 90% mortgage as the house is being sold on the open market. I cant figure it out, do the councils have a deal with the banks that you get a higher % mortgage??? Its very appealing as we could manage the 2k but not something like 16k. This info is highlighted & underlined on the brochure as a selling point to buying one of these houses ... ideas please? Thanks
 
I presume the 2K is a holding fee that will count towards your deposit right? Not the full deposit. The banks will require you have at least the remainder of the 8% (if its a 92% mortgage).
 
Then its no different really to buying any other house? The council have highlighted this as an attractive selling point?
 
Well, you get the 5k moving in allowance, that wouldnt be the norm in a regular sale. And some of the houses are very competitively priced too.
 
Hi Emma28,

When did Cork CoCo send you out that brochure re the moving in allowance ?
Am having a bit of a kufuffle with them at the moment re when the moving in allowance was first introduced. I think it was introduced when the houses were first offered on the open market, but they are telling me it wasnt ???

Thanks....
 
I could be wrong but I assumed the moving in allowence was only applicable to houses that were sold before the end of June 2010.
 
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