There are many obstacles these days which make buying your first home seem an almost impossible task. With the advent of the credit crunch Mortgage Lenders have tightened up their qualifying criteria making it difficult to get your finance approved.
For those lucky enough to get an approval the maximum available is 92%. This leaves a shortfall of an 8% deposit which needs to be funded from an unborrowed source. If you are paying rent then it could take forever and a day to save the 8% needed. However there are a number of ways that your parents can help you.
The first and most obvious way your parents can help is to simply hand over the 8% needed. If your folks have the cash at hand and are willing to hand it over then you are in luck. However not all parents have thousands of euro lying idle on deposit.
Another option would be to ask your parents if they are willing to let you live with them rent free for a while. With no rent or bills to pay you should be able to save the 8% deposit in no time.
Thirdly if your parents have some spare land (many boggers do! no offence intended) then they could offer you a gift of a site. Most mortgage lenders are willing to lend you the full cost of construction if you have a site. The site is effectively your deposit.
Finally if your folks are unable to help then you should turn to your attention to your local council. Most local authorities have Affordable Homes available. These are basically homes that are available to you at a discounted price. It is possible to get a 100% mortgage on the discounted purchase price so a deposit is not necessarily needed.
Despite the current doom and gloom there are options available for First Time Buyers. Falling property prices can make things look scary however a lifetime of rent down the drain is a much scarier prospect. Over the medium to long term we will undoubtedly see some positive growth again in property prices.
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