Building a house despite credit and Schufa

Hello,

First, I want to describe the general situation.
I am in my early 30s, like my wife, and together we earn between 4500 and 5000 €.
We have 2 children from a previous relationship of my wife, and one is currently on the way.
I have a loan that has been rescheduled several times with high (9.5%) interest. It came about due to a master craftsman certificate, housing, job changes. My wife has a small remaining loan of 2000€ and unfortunately a negative Schufa entry from earlier. Together, it is around 30000€.
Currently, we pay around 1000€ monthly and repay about 600€... so it’s bad.

We also pay 500€ cold rent.

Additionally, we have costs like car insurances, food, etc. of about 2000€.

That makes about 3500€ expenses.

There must be a way with an income of 4500€ for a family with 2 secure jobs to be able to build a house and pay off the loan of 30000€ with a construction loan and thus build a home.

Costs for house + land about 300000€.

Possible rate 1500€.

What do I have to consider..

Would like to switch banks..

All loans are with Sparkasse, like our two accounts...

A joint account would also be okay.

Maybe someone has tips..

Thank you already.

Of the €4,500, nothing remains at the end of the month because you still have to repay the loan. There is no equity available. Living expenses are very high and will probably increase with the next child.

Chance of building a house = 0, because no bank will finance you with the current situation.

Tips: Keep a household budget and see where you can save. Repay the remaining loan as quickly as possible and then save equity. Get rid of the negative Schufa entry quickly.

Sorry, I cannot give you any positive information from a banker’s perspective at the moment.

The existing loan is to be completely paid off at once with the construction loan. Then we would combine rent and loan now under one roof (construction loan).

Negative entries in the Schufa expire. 9.5% interest?! I would assume that a first step could be to refinance this with another installment loan... with lower interest - that should be possible. Once the loan is gone (with some effort in 1.5 years), you can think about saving and then about a house... for all I care, even with 100% financing. This won't work... you take out €300,000 - from that, notary, land registry, etc. will consume more, plus an additional €30,000. The house will then only be worth €260,000... you won’t find a bank that will do that.

The existing loan is to be paid off completely at once with the construction loan. Then we would bring rent and loan together now (construction loan)

This is all nonsense and no bank will finance it that way. First, sort out your financial situation properly and then slowly think about how to build up sufficient equity for financing home ownership.

You are currently building castles in the air, which have no prospect of being realized. Waking up and facing the actual circumstances is definitely better than financially running laughingly into a circular saw.

Okay....closed

Thank you