Usually an overpriced 30 year ARM (with a fixed period at beginning) and a restriction that you pay it off before retirement (so no 30 year mortgage if you're 45 for instance). Also a much tougher application process where people without "permanent" jobs are screwed. Of course, many, many people are on temporary contracts (because firing perm employees is hard). Possibly a stiff deposit req (I'd need a 20% deposit) and you can only borrow 4x your income. Having kids counts against you too.
At least this is the case in Ireland. I bought my house in cash.
> Possibly a stiff deposit req (I'd need a 20% deposit)
Note that, for Ireland, this is because you're a second-time buyer. It's 10% for first time buyers.
Today, mortgage rates in the US start at about 6% for a variable rate, or 7% for a 30 year fix. If you have <20% deposit you'll pay about 1% PMI, too. In Ireland, the age of the 2% mortgage is definitely gone, but you'll pay about 4% variable, or 4-5% for a normal 10 year fix. Avant will give you a 30 year fix for about 4%, though there is limited actual demand for such a product in Ireland.
By the way, you can get a mortgage that goes into retirement, though the bank will certainly want to see evidence of a pension... You can also get a mortgage if you're self-employed; you'll want about three years accounts and for either of these cases you'll probably need a broker.
So, really, it's swings and roundabouts to an extent; Irish mortgages are a lot cheaper than US ones. To some extent this is structural weirdness; the banks have more deposits than they know what to do with, and under ECB stress testing rules they have limited things they can feasibly _do_ with those deposits, so their cost of funds is relatively low.
Some of these aren’t that far off from the American process. It being an ARM, not being able to get a house if you’re going to retire, and the impermanent job type are a bit weird though. Usually for Americans, you need to show some years of steady income to qualify. It doesn’t entirely matter what your job is - as much as you can show with your tax returns that you’re making steady money (for years) that can afford the home. The having kids thing is weird and I don’t get why that would be against you.
I’m guessing there are much stronger tenant rights in Ireland where they have a harder time evicting the person and making it impossible for them to find housing later. (Credit score, legal records, etc.)
The 4x income and 20% deposit is very common here too. Going past 4x would require unusual circumstances. People doing lower deposits and/or higher ratio incomes are not common especially in the major cities. You might qualify for a special loan from the VA or through FHA but it has penalties like having to pay PMI and being locked to only homes of a certain price.
Interesting, thanks. I came of age in the mid-noughties (and then moved to Ireland) so my perspective on US is skewed.
Reposession in Ireland takes years. And the existence of strong protections against firing means banks only (usually) lend to people with permanent jobs, even if you have years of income on temp contracts.
At least this is the case in Ireland. I bought my house in cash.