HBFI (Home Building Finance Ireland) is a private company formed under the Companies Act 2014 and the Home Building Finance Ireland Act 2018. HBFI is wholly owned by the Minister for Finance and has been established for the purpose of funding the construction of new homes in Ireland. It is a commercial entity, providing finance at market rates for commercially viable residential developments.
In order to apply for a funding facility from HBFI, certain minimum criteria must be met. These are:
– The minimum number of units (houses/apartments or a mix) for which funding will be provided is 10.
– The site must have planning permission, or at a minimum a planning application must be submitted.
– Funding will only be provided to corporate entities, HBFI will not lend to natural persons.
– A borrowing entity must provide a minimum of 20% equity, which can include the site value. HBFI may fund up to 80% of the LTC (Loan to Cost) of a project.
– HBFI may provide funding for site purchase subject to certain terms and conditions.
The application process is a 3-step approach with the first two steps indicating your eligibility for this funding facility.
Once a HBFI Lending Manager has been in contact with you to discuss your expression of interest, you may proceed to the final step in the application process. The lending rate will depend on the risk profile of each project, the quality of collateral, the creditworthiness of the borrower and the track record of the borrower in delivery of residential development projects. HBFI will lend on commercial, market-equivalent terms and conditions.
A borrowing entity must provide a minimum of 20% equity. HBFI will fund up to 80% of the LTC (Loan to Cost) of a project. It is also worthwhile to note an entry and exit fee on any facility provided may be applied by HBFI. Any professional fees accrued in providing a facility will be for the account of the borrower.
For more details on this finance facility, go to www.hbfi.ie