Credit Checks for Affordable Housing

J

jenben1982

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Is your application sent to a bank or lender such as IIB Homeloans or PTSB does anyone know?

Also Are there credit checks done.

I have two large loans, amounting to 16k, will this go against me when applying??
 
EBS and IIB are the only 2 Lenders I'm aware of that give affordable housing loans. Whether you actually apply through them or not is another thing.

Yes a credit check will be run on you.

Yes existing loans will affect your borrowing potential.
 
Will they then advise the council to put you on the list??
Click to expand...

It works the other way round , once you have been approved for an affordable house with the council, then you can apply directly to either IIB, BOI or EBS for a mortgage.

Any other loans you have will show on a credit bureau check and will effect the total amount you qualify for.
 
I have an application in with Fingal for 3 months now.
When I went for my interview I had a loan that I owed 600 euro on, they said it was no problem because it was a small amount.

They then called me last week and asked me to pay it off and give them a zero balance statement on it, so Kevin is right. Whether the mortgage is with a lender or the council themselves, any borrowings will affect your application.

C.
 
As far as I know, this is the case:

There are 2 different schemes that the councils run (in the case of Fingal and South Dublin CC anyway)

1 is the standard Affordable Housing where the council either a), build properties on their own properties or b) where they get properties handed over by the "20% Rule". For this scheme, you take your mortgage out directly from the local authority. You don’t have any choice in the matter.

The second scheme is the Affordable Housing Initiative where a developer hands over a number of properties in a "land swap" with the government (for example Durkans handed over several hundred properties in West Dublin in exchange for some prime state-owned land in the city centre). in these cases you get your mortgage from an "Approved Lender", for example Bank of Ireland. You first get approved to buy an affordable home from the county council, then you need to go to the bank and beg/convince them to give you a mortgage like any other house-buyer

so, in other words, whether or not you get your mortgage from the council depends on which scheme you fall under.

Incidentally, I found that both councils looked very deeply into my finances - I don’t think they are any more lenient than the banks. I dont know if they did a credit bureau check on me, but I presume they did.

I don’t have any loans, so I don’t know what effect loans have on your application. I know that both don’t like over-drafts or large credit card debts - SDCC even asked me to write to my bank and cancel my over-draft.
 
though how come car loans don't seem to be an issue? i had applied for a normal mortgage some while back and was told that with my car loan i'd only qualify for 193k, but now i've been approved by council for affordable home in marlfield.
went up other day paid booking deposit and am 'provisionally' approved through EBS for 97% of my purchase price which is 220k. (i think the 97% rule is correct anyway) the council have been so laid back, have not checked any of my finances in depth whasoever, have barely asked any questions, did not interview us or anything?
 
i have 13k loan and 13k savings, i also have my name down on the affordable scheme which you need 7k in savings, should i offset 6k into the car loan? anyone got any advice?
 
If an applicant has a substantial savings amount (>100,000), will that disqualify him from applying for the affordable home scheme?
Or during the application interview/process do you have to show how much savings you have, or just that you have a reasonable deposit and good
monthly income but below the 55,000 yearly income?
I was just wondering if the council can tell you to go away and buy a house yourself without asking for their help.
 
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