Canceled / Self-employment - What will happen to the loan offer?

Hi,

following issue...

My girlfriend was laid off due to operational reasons but has been offered to continue working in the company as a freelancer.

We are about to build a house and actually wanted to finalize everything before Easter...

What are the advantages or disadvantages of being self-employed, I mean now for our plan to get a loan??

Can you help me here??? I am very grateful for any tips!!!!

I look forward to your answers!

Best regards Bacboy

Hello bacboy,

a newly started self-employment does not bring any advantages regarding the financing of your house!

For self-employed persons, banks want to see the income documents (annual financial statements / balance sheets / profit and loss statements) of the last two years during a credit check, and these are currently not available to you or your girlfriend.

Only if you can credibly demonstrate (possibly with confirmation from the employer) that the income will develop in the future at a similar level as before when employed, can financing take place considering both incomes.

By the way, for self-employed persons, the employer’s share of health and pension insurance contributions does not apply. This means the bank also assumes corresponding amounts for this. Therefore, the expected income must be higher again to net the same as before.

The whole situation then does not pose a problem for your planned financing if your sole income is sufficient to service the financing.

Best regards

M. Thiemann

Hello bacboy,

Starting a new self-employment does not bring any advantages in terms of financing your house!

For self-employed people, banks want to see the income documents (annual financial statements / balance sheets / profit and loss statements) of the last two years during a credit check, and these are currently not available to you or your girlfriend.

Only if you can credibly demonstrate (possibly with confirmation from the employer) that the income will develop in the future at a similar level as before when employed, can financing be considered taking both incomes into account.

By the way, for self-employed people, the employer's shares of health and pension insurance contributions do not apply. This means the bank also calculates corresponding amounts for this. So the expected income must again be higher in order to net the same as before.

The whole situation does not pose a problem for your planned financing if your sole income is sufficient to cover the financing.

Best regards

M. Thiemann

Hello Mr. Thiemann,

Thank you very much for the detailed response.

We had a conversation with our house bank (Postbank) yesterday evening and would have received financing for our construction project.
We calculated with my salary and a 400€ mini-job (which you can always get).

Now we just have to decide if we really want to do it.

Well, not so easy...

Regards Bacboy

Hello Bacboy..... a small tip to improve your creditworthiness would be to include a solar system. This way you would have government-mandated income through feed-in. But be careful when searching and get professional help, because there is a lot of solar junk for expensive money.

Hello Bacboy.....
a small tip to improve your creditworthiness would be to include a solar system.
This way you would have government-fixed income through feeding in. But be careful when searching and get professional help, because there is a lot of solar junk for expensive money.

Hi Bauti,

thank you very much for the tip!

I will build a Kfw85 house including solar.

That should then be fine.

Regards, Bacboy