Paul Kehoe (Wexford, Fine Gael)
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Question 391: To ask the Minister for the Environment, Heritage and Local Government the position regarding the €40,000 income (details supplied); if the ordinary county council loan being administered by county councils has increased; and if he will make a statement on the matter. [38206/08]

Michael Finneran (Roscommon-South Leitrim, Fianna Fail)
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The Home Choice loan scheme 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 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.

A minimum income of €40,000 will be required for single applicants. A minimum income requirement will also apply for joint applicants. This and other outstanding details of the formal credit policy which will govern the scheme are currently being finalised. The maximum income limit for the pre-existing local authority loans remains at €40,000 for a single applicant. However, the income and loan limits for the existing scheme are currently under review.