Building a house without equity - is that possible?

Dear community,

After finding a rough starting point through another thread, we are now wondering how to approach financing.

We are both (currently 19 & 20 years old), married, have a positive credit record, no ongoing loans, and earn a combined net income of €3800. We have permanent contracts with an automobile manufacturer.
Our current monthly expenses:
- 2 cars: €800
- Apartment: total €625 (including electricity, DSL)
- All existing insurance: €191
- [GEZ]
- Subscriptions: €9.99
- Mobile phone contracts: €55

The rest remains for fuel and food.

Since we are so young, we have no equity. We are aware that the repayment will be more expensive than normal.

But do we have a chance to finance WITHOUT equity (land and house approx. €450,000)?

Has anyone financed without equity, if so, with whom?

Thank you!

May I ask why?

Sure, save €1500/month for 10 years and you will have €180,000 in equity.

Sure, save 1500€/month for 10 years and you have 180,000 equity.

I know that, but we plan, if possible, to pay a higher rate instead of using equity.

I know that, but we plan, if possible, to pay a higher rate instead of using equity.

Basically, that’s possible. 100% financing. That covers the costs of building the house and the land. But there are costs that you don’t get covered by the mortgage loan. These are incidental acquisition costs and furnishings like kitchen, lamps, other furniture. Also, you need a buffer (cash) for unforeseen expenses. If you really have basically €0 on hand, the answer is no. With €30,000 cash, you can start to consider it. For €450,000 tied up over 20 years, 2% repayment, you pay €1,400-1,500 per month. Besides the financial aspect, I can only advise against the plan. You’re still so young, have money in your pocket for the first time. You’ve already splurged a bit with the cars, so enjoy that first and take a nice trip. Then maybe look for a 3-room apartment, but not a house right away. Also keep in mind, if you go to a new development area, everyone there is 35+ and in a different life phase. You’d be the odd ones out. I wouldn’t do that.

Why now? At that age, most people are still trying things out, wanting to see the country and its people, enjoy life, maybe change jobs a few times,...

A house is called property because it makes you immobile. It's a decision for life (unless you have enough money for a second and third house). Usually, one also plans a house with their children in mind, how does that look?

Completely independent of finances. Sure, you could have thought all this through, but there is too little input for this in the original post.