Building in Baden-Württemberg - Funding Opportunities

Hello house building community,

after being told countless stories about Lakra and KfW and so on, I wanted to ask here in the forum if anyone is familiar with funding opportunities in BW? We have not yet been to the L-Bank.

Two adults and three children want to build a new house, solid construction, preferably or probably inevitably also KfW 55 or something along those lines.

Does anyone have tips for me?

I am grateful for everything!

L-Bank essentially offers the KFW Energy-Efficient Building Program and the Home Ownership Program with slightly better conditions. You can finance up to 50,000 each at an interest rate of approximately +-1% over 10 years.

The Z15 loan can be interesting. If you meet certain conditions, you get a very favorable loan over 15 years. Among other things, your income is decisive. Depending on the number of family members (2 adults + 3 children in your case), you are not allowed to earn too much, but also not too little... For 2 children, the limit is, in my opinion, about 63,000 annual gross family income, so a bit higher for 3 children... If you together earn more than ~70k, you can forget about it, otherwise just check the exact conditions and terms on the L-Bank website.

I just quickly calculated it in my head with Z15... it should just about work. However, there are some things that still need to be clarified. I believe you're only allowed to build exactly as they say, e.g. size, size of the children's rooms, energy saving regulations, and so on. And it’s supposed to be an insane bureaucratic process... but I don’t know anyone who has ever received such a loan.

I know someone from the circle of acquaintances who received such a loan, so it is possible. The problem for them was initially the minimum required personal contribution or the minimum required equity. They then borrowed 10,000 from their parents to qualify for the loan. Yes, it is a bureaucratic effort, but the interest rate is temptingly low... IF you can meet all the conditions without great contortions, it can be worthwhile... I myself unfortunately had to give up on the topic with my financing...

Yes, dear equity ... we will probably get stuck on that first as well ... but the thing with parents doesn’t sound dumb, when you do the math, it is the best solution. Provided Mommy and Daddy can come up with the 10,000.

We will see ... many thanks so far for your information!

Hi,

the Z15 was discussed here in another topic. "Disadvantages" in my opinion: max. 2% repayment and no special repayments. The first 10 years with the low interest rate are of course not to be underestimated, but what happens when the fixed interest period ends after 15 years?! In the other topic, the remaining balance was still around 70-75%. One option would be to secure it with a building savings contract/loan.