Can we afford to build a house without equity?

Thank you very much for the many tips. It’s not easy to understand all this when you have never had to deal with these topics before. How is it actually if I get comparison offers from other banks – doesn’t my score with Schufa decrease? Do you only get a repayment-free year with a KFW loan? Does everyone have a claim to such a loan or how does that work? Otherwise, you start paying the installments as soon as the first payment has been made by the bank, right? But then I would have a double burden (rent + installment), which you can manage for 2-3 months but it’s hardly feasible for a longer period. However, a solid house is built over a longer period. Sorry for the many questions but I’m pretty much at the beginning..... Regards to everyone and have a nice weekend

What happens if I get comparison offers from other banks – doesn’t my SCHUFA score drop then?

Only if you make genuine credit inquiries, just getting an offer doesn’t affect anything.

Do you only get a repayment-free year with a KfW loan? Does everyone have a claim to such a loan or how does that work?

KfW is a bit of a thing, they check your income, it must not be too high or too low. I didn’t take one and wouldn’t have gotten one either.

Otherwise, you start paying the installments as soon as the first payment from the bank has been made, right? But then I have a double burden (rent + installment), which you can bridge for 2-3 months but hardly manageable over a longer period. A solid house is built over a longer period.

Not quite, you don’t pay any repayment until full disbursement, only interest proportionally. But that’s the point with building without equity. Normally, you don’t even get the property tax and notary fees covered by the bank. My loan is paid out only from the top edge of the basement; before that, you already pay quite a bit (land, tax, notary, and the first installment for the house).
So you need interim financing (or family?)! That costs extra again.

Hello Mia

With an income of about 3000.00 and a rent of 880.00, you should be able to bridge a few months. If you consider building today, a few more euros can still be saved. If you want, you can also get more repayment-free years. Up to 5 are probably possible. You don't have to use them all. You have to repay everything eventually anyway. But if you can only bridge 2-3 months, I might rather wait and save equity. Interest and repayment rates should not exceed 40% of the available income, at least that's what one occasionally hears from banks. With the additional house costs, you will eventually be close to "50% for a roof over your head". You surely know your own ability to contribute best. For me, 40 or 50 are definitely too much.

Regards Ille1975