Obtaining a mortgage before moving back to Ireland

Does anyone know if it is possible to obtain a mortgage to either build or buy a house in Ireland while still living oversees? My husband and I are both Irish but have been living in the USA for over 10 years. We would like to return to Ireland around the end of 2007 but with house and land prices going up it appears by the month, we would like to buy before we move back. Our first choice would be to buy a site and build our own house as my husband is a builder so would be much cheaper. I am aware of how difficult planning permission is but that is another topic! Is it possible to get a loan for a site and self build based on our US income? If not would it be possible to obtain a mortgage to buy a house also based on our US income? Any information or advice would be greatly appreciated.

Should be. While we were based in the U.S. we were able to obtain a mortgage on a property in Ireland. We however owned one property in Ireland but I don't think that this impacted getting the loan - I think it was more in relation to the ability to repay and LTV. For someone not based in Ireland you would be considered an investor . I think most companies would give 75% of the mortgage . Bear in mind that you would have to pay stamp duty also , though I don't know what would happen if you were to return in the meantime and become resident. We dealt with REA in merrion street, Dublin and they were excellent . Particular being outside of Ireland we found that it made things much easier being able to deal with someone via email and fax or mail information to one destination. I don't have any experience of the self-build type of effort that you are considering so can't really help with that . If you need any other info you can send me a private message if you prefer or post it here .

Hello Colorado,

To obtain a mortgage on income outside the state, that banks will allow a mortgage of 75% of the value of the property, however say you chose a property that is not ready till next year, you could get loan approval based on 75%, and if you are home before the cheque issued you could resubmit your case based on a higher amount. Some of the banks here would take your USA income into account for assessment, and you could qualify for 100% finance, if you are a first time buyer.

I hope this helps,
Best of Luck

Some lenders will go to 80% as long as the mortgage fits their standard criteria. If you are intending moving back to occupy the house as your main residence you will need to prove that you have permanent income sufficient to cover the mortgage here and you would have had to complete any probationary period prior to closing.

Sarah

www.rea.ie

Thanks for all the infomation. I am a little confused on the last response ("If you are intending moving back to occupy the house as your main residence you will need to prove that you have permanent income sufficient to cover the mortgage here and you would have had to complete any probationary period prior to closing."). Are you talking about our income from the USA being sufficient to cover the Irish mortgage? And the probationary period completed prior to closing, again is that in relation to our USA income? Our intention is to try and build/buy in Ireland several months, maybe even a year, before returning to Ireland to live and obtain work. Once again thanks for all the helpful advice, I really appreciate it.

If you are buying a property here from the US the lenders will look at your income and outgoings in America and will assume the property here is to be let so will also factor in rental income. If you intend buying here with a view to moving into the house as an owner occupier you would need to show income in Ireland to cover the mortgage. Given your intention to buy/build her and then move back it will be your US income (as evidenced on your bank statements, payslips and W2 forms) that will determine how much you can borrow (up to a max of 80%).

Kind regards,

Sarah

www.rea.ie