Combine KfW 261/461 with 124 - experiences?

Hello,

we are currently determining the financial framework for our construction project (single-family house on the field at my grandma’s).

For this, we are examining all possible financing and funding instruments to put together the financing mix that suits us best.

The KfW 261/461 or now BEG WG (we are aiming for an efficiency house 40 of the EE class) seems to us to be a very good component for financing because of the (repayment) grant.

Combinable with this is also the KfW 124 (home ownership program). A loan without further grants.

In addition, we already have the land and some equity. A bank loan will also be added on top.

I am now wondering: Is the KfW home ownership program useful here or is it better to simply take 100,000 euros more from the bank instead? The interest rates are not much cheaper than the bank loan; in return, the loan is relatively inflexible (no special repayments, no change of the repayment rate, etc.).

Has anyone here from the forum used this combination or consciously decided against it? It would be great if you could share your experiences with me.

Best regards Micha

Hello, we are currently determining the financial framework for our construction project (single-family house on the field near my grandma’s). For this, we are reviewing all suitable financing and funding instruments in order to put together the right financing mix for us. The KfW 261/461 or now BEG WG (we are aiming for an Efficiency House 40 of the EE class) seems to us a very good component for the financing because of the (repayment) grant. Combinable with this is also the KfW 124 (homeownership program). A loan without additional grants. Furthermore, we already have the land and some equity. A bank loan will also be added on top. I am now wondering: Is the KfW homeownership program sensible here, or would it be better to take out 100,000 euros more from the bank instead? The interest is not much cheaper than the bank loan, but the loan is relatively inflexible (no special repayments, no change of the repayment rate, etc.). Has anyone here from the forum used this combination or consciously decided against it? It would be great if you share your experiences with me. Many greetings Micha

First, you should be clear whether you are choosing a grant variant with 461 or taking out a loan, whereby the amount is deducted there. If you choose a grant variant, you must not deduct it from the construction financing sum since the money comes only after the construction. So you have to front all costs first. You can then use the grant, for example, for outdoor facilities or special repayments. I personally find KfW 124 very bad because, as you already said, it is very rigid. You are not allowed to make special repayments, etc. Therefore, I would almost always tend towards a bank loan.