First Home Scheme Eligibility Ireland

If you are wondering about First Home Scheme eligibility Ireland, you are not alone. I have had this conversation with friends over coffee more times than I can count, and the confusion is real. Look, the First Home Scheme is essentially a shared equity initiative that helps first time buyers bridge the gap between their mortgage and the price of a new home. It is backed by the State and a handful of lenders, and it has genuinely changed things for a lot of people. But the rules around First Home Scheme eligibility Ireland can be a bit fiddly, so let us walk through them together.

What exactly is the First Home Scheme?

Right so, imagine you have saved a decent deposit, you have a mortgage approval in principle, but the property you are eyeing up is still a stretch. The First Home Scheme steps in to take a minority equity stake in the property, usually between 5% and 30% of the purchase price. You do not pay interest on that share, and you can buy it back later or when you sell. It is not a loan, it is a co ownership arrangement. The scheme is open for new builds and, as of last year, certain second hand properties that have been vacant for a while. Fair enough, it is not a free lunch, but for many it is the leg up they need.

According to the CSO, the average new home price in Dublin has climbed past €500,000 in recent years. That is a tough nut to crack on a single salary. The scheme was designed to help people who are stuck in that gap earning too much for social housing but not enough to buy without help. And to be honest, that covers a lot of us.

Who can apply? Key criteria

First Home Scheme eligibility Ireland boils down to a few core conditions. You need to be a first time buyer, or a fresh start applicant (someone who previously owned a home but no longer does, e.g. after a separation). You also need to have mortgage approval from a participating lender. And importantly, there are income and property price limits.

• Income limit: Your gross household income cannot exceed €70,000 for a single applicant or €100,000 for joint applicants. This is based on your most recent tax returns.
• Property price cap: The maximum purchase price depends on where you are buying. In Dublin and surrounding counties like Wicklow, it is €475,000. In other parts of the country it ranges from €425,000 down to €325,000.
• Minimum deposit: You still need a 10% deposit of your own. The scheme cannot cover that bit.

Anyway, there is one more twist. The combined value of your mortgage plus the scheme equity cannot exceed 90% of the property value. So if you are putting down 10%, the mortgage can be at most 80% and the scheme can cover the remaining 10%, or up to 30% if your mortgage is smaller. It is a balancing act.

How your income is assessed

When the scheme checks your eligibility, they look at your gross income from all sources, including bonuses, overtime, and rental income if you have any. The RTB (Residential Tenancies Board) publishes average rents in different areas, and if you are a landlord earning more than pocket money, that counts. But for most first time buyers, it is just your salary. If you are self employed, you need two years of accounts. Look, it is a bit like applying for a mortgage, but with an extra layer of paperwork.

I remember helping a mate who works in tech in Cork. His annual salary was €68,000, his partner earned €35,000, so combined they were well under €100,000. They were looking at a new build in a commuter town priced at €420,000. They had a 10% deposit saved, a mortgage approval for €330,000, and that left a gap of €48,000. The First Home Scheme stepped in with a 10% equity stake, and suddenly the numbers clicked. Fair enough, they had to wait a few weeks for the application to go through, but it worked out grand.

Property types that qualify

Not every house or apartment is eligible. The scheme mainly applies to new builds from approved developers. You can also use it for self builds if you already own the site, but that adds complexity. And there is a pilot for second hand homes, but only those that have been vacant for at least two years and are part of a local authority scheme. For the most part, if you are scrolling through properties for sale on Findivo.ie, look for the “First Home Scheme eligible” tag on new developments.

• New build houses and apartments from authorised builders
• Self builds on a site you already own (subject to conditions)
• Certain vacant second hand homes (check with the scheme directly)

What about apartments? Any size limits?

Apartments are fine, but there is a minimum floor area requirement. It varies by local authority, but typically a one bed must be at least 45 square metres and a two bed at least 65 square metres. This is to ensure the property is of a decent standard. To be honest, most modern apartments in Dublin meet this, but older ones in some areas might not. Always check the BER certificate and the floor plan.

How to apply step by step

Alright, so you think you meet the First Home Scheme eligibility Ireland criteria. What next? First, get mortgage approval from one of the participating lenders, which include AIB, Bank of Ireland, PTSB, and a few others. Then find a qualifying property. Once you have a signed contract or a letter of offer from the developer, you submit an application online through the First Home Scheme portal. You will need your mortgage approval letter, proof of income, deposit confirmation, and the property details.

Practical tip: Before you even start house hunting, use the online eligibility checker on the First Home Scheme website. It takes ten minutes and saves you heartache. I know a couple who fell in love with a house only to discover the scheme would not cover it because the price was €5,000 over the cap for that area. Avoid that pain.

The scheme aims to respond within ten working days, though in busy periods it can take longer. If approved, you sign a shared equity agreement, and the scheme pays its share directly to the developer or seller at closing. You then take out your mortgage for the rest, and you are a homeowner. Sort of. You own the property fully, but the scheme has an equity stake that you can buy back in chunks over time. There is no interest, but if the property value goes up, the scheme’s share increases in value too. Fair enough, that is the trade off.

If you are thinking of renting out the property, forget it. The scheme requires you to live in the home as your principal private residence. You can rent a room under the Rent a Room scheme (up to €14,000 tax free), but you cannot let the whole place. The RTB would get involved if there was a dispute, but the scheme’s terms are very clear on this.

What happens when you want to sell or buy back the equity?

You can buy back the scheme’s share at any time, either in full or in part. The price is based on the market value at the time of purchase, determined by a professional valuation. If you sell the home, the scheme automatically gets its percentage of the sale price. For example, if it owns 20% of the house and you sell for €400,000, the scheme takes €80,000, and you get the rest, minus any mortgage and fees. That is straightforward enough.

One thing to watch: there is a five year “lock in” period. If you sell in the first five years, you can only sell to another first time buyer or someone who qualifies for the scheme. That keeps the property in the affordable pool. After five years, you can sell to anyone. The CSO reported that house price growth has slowed in some areas, but if you are buying a new build in a good location, the value tends to hold up.

Alternatives to the First Home Scheme

Maybe the First Home Scheme eligibility Ireland rules do not quite suit your situation. Perhaps your income is just over the threshold, or you want an older house. There are other options. The Help to Buy scheme gives you a tax refund on your deposit for new builds up to €30,000. You can combine it with the First Home Scheme, but the total State support cannot exceed 30% of the property value. Also, local authority affordable purchase schemes operate in some areas, though they are rarer.

If you are looking for a cheaper way in, consider browsing rental properties to save up more deposit, or look at cars on Findivo.ie if you need to free up cash by selling your current ride. Every little helps. And if you need to register your interest with agents, use our registration form to get notified of new eligible developments.

Anyway, the First Home Scheme is not for everyone, but if you are stuck on the housing ladder’s first rung, it might be the push you need. Check the rules, talk to a mortgage advisor, and do not be afraid to ask questions. The worst they can say is no. To be honest, even if you are slightly above the income limit, it is worth revisiting your figures. Bonuses are sometimes excluded if they are not guaranteed, and overtime can be treated differently. The scheme has a bit of wriggle room if you have a good explanation.

Look, buying a home in Ireland these days is a journey. But with schemes like this one, the path is a bit clearer. Just make sure you have your paperwork in order and a clear idea of what First Home Scheme eligibility Ireland means for your specific circumstances. Good luck.

Frequently Asked Questions