Affordable Housing with Help to Buy

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Ryanod

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I am in the fortunate position to have been offered an affordable housing unit. I have applied for the help to buy scheme but I have been told I have to get a mortgage of 70% of the market value of the affordable housing unit rather than 70% of the purchase price. This seems crazy as the reason I applied for the affordable housing is because I cannot qualify for 70% of the market value of the unit. I can qualify for 70% of the purchase price of the unit but I'm told this is not enough to get the help to buy.
The schemes don't seem to work together in this instance, has anybody else come across this or found a solution? Thanks!
 
Thank you, I have an application in which will hopefully be approved. my understanding is that the mortgage qualification rules are broadly similar to the banks, and that the 70% rule will still apply.
 
Citizens Information said they think its an anomaly and I should make the case with Revenue. Anyone know how to get to get to someone in Revenue with the power to make such a call/exception?
 

Who can claim HTB?

This page outlines who can claim relief through the Help to Buy scheme
www.revenue.ie www.revenue.ie
Who can claim HTB?

To claim HTB, you must:
  • be a first-time purchaser at the time of the claim
  • purchase, or self-build, a qualifying property between 1 January 2017 and 31 December 2024
  • live in the property as your main home for five years after you purchase or self-build it
  • be tax compliant. If you are self-assessed, you must also have tax clearance
  • take out a mortgage on the property with a qualifying lender. The mortgage must be at least 70% of the:
    • purchase value of the property
    • or
    • approved valuation, in the case of a self-build.
Click to expand...
 
it sounds like your applying for help to buy and affordable housing at the same time ? I would have thought you could only be approved for one and not both but open to correction
 
ClubMan said:

Who can claim HTB?

This page outlines who can claim relief through the Help to Buy scheme
www.revenue.ie www.revenue.ie
Click to expand...
Thanks for this, as its an affordable housing unit, things are a bit more complicated.

The terms "purchase price" and "property value" are using interchangeably when it comes to revenue, which works for a standard purchase but not for an affordable housing unit as the value is significantly higher than the purchase price. In fact, on revenues website they say that the purchase price "cannot be less that the value" and yet in other areas they say the Help to Buy can be used to purchase affordable housing which by its very nature has a purchase price that is less than the property value.

In my case in order to qualify for 70% of the value (205k), I would need to have the maximum salary (67k) allowed by the Affordable housing scheme in question.

It seems crazy that someone with a larger salary would get an advantage in the form of the Help to Buy. When someone whose salary falls just short of qualifying for 70% of the value will be denied the Help to Buy on a technicality.
 
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