Ciarán Lynch (Cork South Central, Labour)
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Question 205: To ask the Minister for the Environment, Heritage and Local Government how members will be appointed to the home choice loan boards; the criteria that will apply; to whom will the boards report, that is, the local authority or to him; will the positions be advertised for public competition; by whom and the scale on which board members will be remunerated; and if he will make a statement on the matter. [36740/08]

Bernard Durkan (Kildare North, Fine Gael)
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Question 216: To ask the Minister for the Environment, Heritage and Local Government the details of his house purchase proposals for first-time buyers; and if he will make a statement on the matter. [36783/08]

Leo Varadkar (Dublin West, Fine Gael)
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Question 219: To ask the Minister for the Environment, Heritage and Local Government the reason first-time buyers who secure a mortgage under the home choice scheme must buy a newly built home and cannot buy a pre-owned property; and if he will make a statement on the matter. [36825/08]

Michael Finneran (Roscommon-South Leitrim, Fianna Fail)
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I propose to take Questions Nos. 205, 216 and 219 together.

Home Choice will be available to first time buyers of new houses, subject to a maximum loan of €285,000, depending on income, and a maximum loan to value ratio of 92%. The loan term will be up to 30 years. A minimum income of €40,000 will be required and a detailed credit policy is now being finalised. A single standard variable interest rate product, related to the prevailing rates available from commercial institutions will be applicable. All applications will be rigorously assessed having regard to an applicant's ability to pay, credit history and all other aspects of the formal lending policy. An applicant's ability to pay will also be stress-tested to assess their ability to repay at current rates and in the event of significant interest rate rises.

No new formal institutional structures are being established for the purpose of administering the scheme. Four local authorities will be designated as lending authorities acting on a regional basis. The four designated local authorities are Cork City Council, Dublin City Council, Galway County Council and Kilkenny County Council.

The four designated local authorities will be supported by a Central Processing Unit, staffed by appropriately skilled personnel, including qualified underwriters, and operated with administrative assistance from the Affordable Homes Partnership. The Central Processing Unit will handle enquiries, process all Home Choice Loan applications from all local authority areas, and issue a determination to designated local authorities on each application in accordance with a formalised credit policy. The Unit will also carry out credit checks, with access to Irish Credit Bureau data.

It is envisaged that applications will be accepted from early November. Prospective purchasers can register their interest at this stage on the www.homechoiceloan.ie website or through the dedicated lo-call number and they will be contacted with further information in relation to the application process.

The scheme applies to new houses because a significant majority of first time buyers purchase new houses. The average new house price is almost 14% lower than the average second hand house price, so it was considered appropriate to target the scheme towards properties which are more affordable for First Time Buyers.