Building a house as a self-employed person - realistic?

Hello everyone,

I am uncertain about building a house. In the future, my wife and I want to build our own house. Unfortunately, I am a bit unsure whether we have any chance of getting a loan at all.

Starting point: I - self-employed since 2007 She - permanent employment since 2009 with about 1300 net

About my income: In the first years, I unfortunately did not earn much (starting a business is not easy). Meanwhile (last 4 months) I have made a breakthrough and earn about 2500 euros net per month. I have read on the internet that self-employed people have difficulty getting a loan and that a BWA from the last 3 years must be submitted. How is that best done? In the last 3 years, there has always been a slight increase in income but I had not earned more than 1000 euros net/month before.

We have 20,000 euros of equity available immediately for a loan. Do we need more equity? Should one have 1/4 of the purchase price/loan amount?

About the house: We want to build a duplex together with my parents. Both parents are employed and have already built a house for which they still have about 60,000 euros remaining on the loan. Could that be an advantage? We could move in immediately with my parents and would hardly have any costs during the construction period, so we could save well again.

How would you proceed?

Hello,

no, I have not created a BWA yet. Thanks for the tip to go to the financing broker. I think that will be the next goal for now. I do not live in the Rhineland [Rheinland] But thanks for that. Otherwise, I will ask around among acquaintances. Somehow, I do not dare to approach anyone with such a matter whom I or acquaintances do not know.

Hello,

...Otherwise, I will ask around in my circle of acquaintances. Somehow, I don't dare to approach anyone with such a matter whom I or my acquaintances don't know.

That might be a mistake...

Similar to football, there are countless "construction/finance experts" who are always happy to assist you with their "experience." But when it comes to verifiable/reliable statements, the waters become completely calm.

If you hire an independent finance broker—independent in the sense that they are liable for consulting errors—you cannot fail based on all experience. By the way—when I say independent, I do not mean AWD or a comparable insurance-like institution. Especially when it comes to amounts that are almost everyday in house construction, every risk should be excluded as far as possible from the outset. This risk minimization can be excluded in very few cases by acquaintances within the scope of available possibilities; sometimes the problem simply lies in the extent of factors to be considered, experience, etc.

As a self-employed person, tax aspects also come into play for you; the scope of positions to be considered is many times greater than, for example, that of an employee. Please excuse me if I insist so persistently on sound advice—but especially in financing matters, there are so many self-proclaimed professionals that all the shelves in courthouses probably should not even exist...

Please also consider that you literally have to "drop your pants" in front of your financial advisor—so carefully consider whether these sensitive data should necessarily be disclosed within your circle of acquaintances.

Kind regards

I think we didn't quite understand each other. I would never ask an acquaintance for advice in the matter. It was more about the recommendation of a financial broker. Because I would rather not take someone I know nothing about. Thanks anyway for your kind advice. The forum is really well done with all the tips.