# Credit Union loan for mortgage?



## Kai123 (28 Dec 2010)

Hey,

I know this was doable in the past. Me and my long term partner are  saving for a mortgage. We are both on 20k a year. We do not drink or  smoke, have a very small tiny carbon footprint so our bills are tiny,  and we are secure in our jobs. We can save 800 euro a month and have  money left over for eating out, shopping, bills, car insurance and  everything else.

We could finance a 240k mortgage. The problem is we do not have the  deposit. A house in the countryside is on sell for 240k which has an  insane amount of land attached to it. It is a bargain and someone will  snap it up sooner or later. I could finance a loan of 19,200 Euro from  my local CU., borrowing money from family to get the secured loan. 

In a nutshell, is it still possible to get a credit union loan to use as a deposit for a house?

Any help or advice. would be appriciated.

Kai


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## Guest110 (28 Dec 2010)

When I went for my mortgage with PTSB I had to prove too them that I saved my deposit up. They wanted to see the monthly statements with the savings increasing every month. 

They also wanted all loans cleared before they would issue the cheque.

It all depends on whether both your salaries are sufficent enough to support the mortgage approval and the loan approval.


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## Kai123 (28 Dec 2010)

So, if the loan repayment was fairly small I could delcare that I have that loan, and still afford the mortgage and everything else on top of the stress test?

Kai.


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## wbbs (28 Dec 2010)

Before you go any further, unlikely you will get 240k on joint income of 40k not to mind pay back credit union loan as well.


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## PaddyBloggit (28 Dec 2010)

You won't get a mortgage for €240k (if the house costs €240k .... most you could get is 92% depending on which bank you'd approach .... 92% works out at €220800.)

BOI mortgage calculator says that the max they'll give you on a joint €40k income is €180k.

You can't afford  a €240k property.

Credit Union won't give it to you either.


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## Kai123 (29 Dec 2010)

Thanks for the input. It's my partners dream house so It was worth a try

I think we will end up buying a one bedroom apartment to get on the ladder. We could realistically achieve the deposit in less then a year and thats also if the price of the apartment stays the same (unlikely).

Thanks again!

Kai.


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## Lee Enfield (29 Dec 2010)

Kai

You are new to this game, just stop for a minute

the property is asking 240k, that doesn't mean it will sell for anywhere near 240k,
a property I looked at last week, is asking 700k, they have an offer of 490k, for example.
I would not recommend buying a one bed apartment, in your circumstances, as a means of getting onto the so called "ladder",


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## millieforbes (29 Dec 2010)

Kai123 said:


> I think we will end up buying a one bedroom apartment to get on the ladder. We could realistically achieve the deposit in less then a year and thats also if the price of the apartment stays the same (unlikely).
> .


 

+1 to Lee's comments 

Also the price of the apartment may well stay the same, I wouldn't let this be the basis to a decision to rush to buy


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## NorfBank (29 Dec 2010)

Kai123 said:


> In a nutshell, is it still possible to get a credit union loan to use as a deposit for a house?



If you do not have the deposit from an unborrowed source then you will struggle to get a mortgage.

www.moneybackmortgages.ie


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## fizzelina (30 Dec 2010)

Also it is harder to get a mortgage for a 1 bed property since I was under the impression banks weren't as willing to lend for them anymore (or at least for one outside Dublin). Personally I think on earning 20k each you are being too optimistic looking for even 180k which is 4.5 times the income. And what if someone loses their job? You need to save and be patient and seriously reconsider getting into such a huge decision as a mortgage until you are financially better off. With regard to the dream house, there is always another dream house waiting.


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## lionstour (30 Dec 2010)

Kai123 said:


> Thanks for the input. It's my partners dream house so It was worth a try
> 
> I think we will end up buying a one bedroom apartment to get on the ladder.(unlikely).
> 
> ...


 
With thinking like this it is absolutly vital you do not buy a house now. Educate yourself a little first. In fact educate yourself a lot first. In three years you will have 28000 saved. House pices will have fallen and you will have a proven record of savings and hopefully employment. In the meantime rent.  Remember to factor in stamp duty and fees which come to around 5 grand even now.


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## PaddyBloggit (30 Dec 2010)

I'd echo what *lionstour* is saying ... forget about 'getting on the ladder' especially with a one bed apt.

Save your cash .... keep looking.

It's a buyer's market and a bargain could well come your way!


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## lionstour (30 Dec 2010)

PaddyBloggit said:


> forget about 'getting on the ladder' especially with a one bed apt!


 
The ladder analogy only works in a rising market.  Certainly not with one bed apartments.


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## Kai123 (30 Dec 2010)

We resigned the idea of the house in the country.

 There are new two bedroom apartments in the village we live in going for 165k, which we can realistically save for in the next two years. 

My girlfriend is concerned that people will snap everything up so she is thinking of buying somewhere in 6 months time, which I know wont happen. Either way, once we start saving in the new year everything is set in motion!

Thanks for the advice 

Kai.


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## PaddyBloggit (30 Dec 2010)

lionstour said:


> The ladder analogy only works in a rising market.  Certainly not with one bed apartments.



 .... that's what I'm saying.

The 'ladder' refers to the fact that the OP was going to use a one bed apt purchase as a ladder.

and I used the word 'especially' in the context that one bed apts were the wrong way to go.

Anyways .... back to OP.

Savew as much as you can, keep looking ... and something will come up that will be affordable and that will suit your purposes.

Good luck with it!


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