Bank does not accept own contribution

Hello first of all.

My partner and I are in our mid-30s. We want to build a small house and do a lot of it ourselves. Friends and family are helping us. My partner's parents are civil engineers (abroad) and in my family everyone has done a lot of work on their own house. We work in commercial professions and can take flexible time off for the construction. A long break of 2-3 months is possible for me.

We thought that were good conditions. My house bank told me today in an initial conversation about a possible financing that they recognize no more than a maximum of 15% as own contribution and might not finance if we don't assign to real craftsmen. That was a shock. The house (without land), as we imagine it, would surely cost over 400,000 EUR if all trades are contracted out. With the planned own contribution, it should remain under 280,000 EUR. A big difference.

Has anyone here had the same problem? Is it the bank? Are there banks that are better suited for this?

One idea is to specifically look for an architect who supports own contribution and get some kind of confirmation from him for the bank. That is just a thought.

Many thanks if someone shares their experience

In my opinion, it is the bank's right to recognize only part of the personal contribution. They want to have your house as collateral. If they now have no proof of your qualification, the risk of shoddy workmanship (whether intentional or unintentional) is very high. (I had to prove my engineering degree and the experience of my bricklayer father-in-law to the bank.)

Much more important, in my opinion, is the construction management. It is difficult to outsource that to someone external with so much personal contribution. How is he supposed to organize that if you tell him you will lay the tiles yourselves? What time frame do you need? Are you so knowledgeable about the topic as to consider how many waterproofing measures, etc., are necessary? And the architect will not do that for free either.

How reliable and accommodating are your construction companies? Who prepares the tenders and evaluates them?

And how do you imagine a saving of that magnitude? Do you get all materials for free? Don’t you need to provide food and insurance for your construction helpers?

Conclusion:
Under the circumstances you described, I strongly advise against carrying out so much personal contribution.

Tip:
Go to potential construction companies and get a quote. When awarding trades (which is also not recommended for laymen), get the major offers (shell construction, sanitary, electrician, roof), and then you will be much closer to the costs that it will ultimately amount to.

PS:
You write "small house" according to your wishes 400,000 €...
How small is small and in which region?

I understand that you want to do so much EL to reduce costs. The problem is the value retention and completion. The bank always has to assume that EL will not work and then possibly refinance. For refinancing, you apparently lack the financial means.

I can only agree with . The risk for new construction lies with the bank. In case the self-performed work plan does not work out, the bank must ensure that the building is completed, as a half-finished shell is very difficult to utilize. Therefore, the amount of self-performed work should always be in a healthy proportion to the total costs.

Save over €120,000 through EL? 30% of the construction costs? That is 2,500 to 3,000 professional craftsman hours. You want to save that, but you yourselves are not craftsmen, and neither are your parents. So does that mean family and friends work with you and cost nothing? If you take two steps back, you should realize why the bank is shaking its head, unfortunately. If you want to have a chance, you have to do it with a solid plan and proof of skills, and even then some banks will not do it on principle.

Save over €120,000 through [EL]? 30% of the construction costs? That amounts to 2,500 to 3,000 professional craftsman hours.
You want to save that, but you yourselves are not craftsmen, nor are your parents. Does that also mean family and friends work along and cost nothing?
So if you take a step back, you should recognize why the bank is shaking its head, unfortunately.

If you want to have a chance, you have to do it with a well-founded plan and proof of skills, and even then some banks will refuse on principle.

that we hardly function with 2 merchants....