Bridging the Gap to Your Dream Home
Intro: Owning your first home in the Republic of Ireland is now more attainable than ever, thanks to the Shared Equity Scheme introduced by the Government of Ireland in collaboration with Participating Lenders. Whether you’re a first-time buyer, self-builder embarking on your first project, or meet other eligibility criteria, this initiative is designed to help you bridge the financial divide between your deposit, mortgage, and the cost of your new home. In this blog post, we’ll delve into the details of the First Home Scheme (FHS) and how it can make homeownership a reality for you.
What is the First Home Scheme (FHS)?
The First Home Scheme (FHS) is a groundbreaking initiative aimed at assisting first-time buyers, self-builders (first time), and other eligible applicants in securing their dream home anywhere in the Republic of Ireland. This scheme is a collaborative effort between the Government of Ireland’s Department of Housing, Local Government, and Heritage and Participating Lenders.
How Does the FHS Work?
The FHS essentially acts as a financial bridge, closing the gap between your initial deposit, mortgage, and the total price of your new home. It offers eligible applicants a unique opportunity to step onto the property ladder without the usual financial burdens. Here’s a brief overview of how it operates:
- Participating Lenders do not provide advice or consultation on the terms and conditions of the FHS. The administration of the scheme is independently and exclusively managed by the FHS. Any queries or concerns regarding the scheme should be directed to the FHS.
- To check your eligibility for the FHS, you can utilize our convenient eligibility calculator, which can be found on our website.
- Ready to take the next step? You can apply for the First Home Scheme and embark on your journey toward homeownership.
FHS FAQs: Your Questions Answered
We understand that you may have questions about the First Home Scheme. To provide clarity and transparency, we’ve compiled answers to the most commonly asked questions in our FHS FAQs section. Feel free to explore these FAQs to gain a better understanding of the scheme’s nuances.
Important Warnings
While the First Home Scheme offers a fantastic opportunity for aspiring homeowners, we strongly recommend seeking advice from independent financial and legal advisers before applying for this product. Property prices can fluctuate, which may impact the equity facility linked to your home’s value. To illustrate potential scenarios, here are two examples:
Example 1: Home Purchase in a Private Development Suppose you purchase a property for €250,000 and avail of €25,000 from the First Home Scheme (FHS), resulting in a 10% FHS equity share in your home. If, in the future, you decide to buy out the FHS equity share, and your home is now valued at €350,000, you will need €35,000, plus any accrued service charges payable, to redeem the FHS equity share in the home.
Example 2: Self-Build on Your Own Site Imagine you own a site valued at €100,000 and construct a house on that site at a cost of €300,000. You avail of €30,000 from the First Home Scheme (FHS), giving the FHS a 10% equity share in your house built on the site. If, in the future, you decide to buy out the FHS equity share, and the property, including both the house and the original site, is now valued at €500,000, you will need €37,500, plus any accrued service charges payable, to redeem the FHS equity share in the home.
The FHS equity share remains unchanged, but any fluctuations in property prices may affect the amount you need to redeem. Therefore, it’s crucial to be aware of these factors when considering the First Home Scheme.
In conclusion, the First Home Scheme opens doors to homeownership for those who dream of having a place to call their own in the Republic of Ireland. With careful consideration and expert advice, this scheme can help turn your homeownership aspirations into reality.