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Reconstruction Loan

 

Loans are currently available for the reconstruction, repair and improvement of houses to applicants who satisfy the income limits as laid down by the Department of the Environment.  The Council must also be satisfied that:

 

  • After the proposed works are carried out, the house will be fit for habitation in all respects,
  • The house is suitable for reconstruction, repair and improvement as the case may be,
  • The proposed works are essential for the purpose of providing suitable housing accommodation.

 

Please note that at least one applicant must be under 55 years of age. (If you do not qualify for this reason, the Council will only consider your application if someone under 55 years of age is willing to make a joint application with you).

 

Income Limit: In the case of two income households a formula of 2½ times the principal earner, plus the other income applies. The product of this formula must not exceed €100,000.00 to qualify. A limit of €40,000.00 applies where there is only one earner.

 

Amount:

 

  1. A loan cannot exceed €38,000 (Offshore Islands €50,000) or 75% of the amount which in the opinion of the Council, the house, if sold in the open market on completion of the proposed works, might reasonably be expected to realise, whichever is the lesser.
  2. A loan cannot exceed 90% of the estimated cost of the reconstruction, repair or improvement works that is, estimated gross cost and after deducting grants payable in respect of the improvement works.

 

Interest Rate: A variable interest rate applies to all Reconstruction Loans.

 

Repayment Period: Maximum repayment period will not exceed 15 years.

 

Title: The title to the ownership of the house must be one which an ordinary mortgagee would be willing be accept, e.g. Fee simple, Fee farm, leasehold not less than 60 years unexpired.

 

How do I apply for a Reconstruction Loan?

 

A standard Application Form for Housing Loan is available for all the major loans including the Reconstruction Loan.  The Application Form contains a checklist of requirements which must be submitted with the application.  Where an application is submitted and this information is not included, it will be returned to the applicant requesting the missing information.