Construction financing for house building in Brandenburg with difficulties

I just additionally noticed that you include the kitchen with 20k in the financing amount, since you currently can’t pull it from equity, right?! Usually banks don’t finance kitchens because it counts as furniture. Good luck!

Basically, we are flexible there. With the remaining equity, we would now have paid surveyors, energy consultant, construction electricity, etc., and part of the outdoor facilities. Basically, we could also cover the kitchen through that and/or borrow the amount within the family and then repay it with the Bafa subsidy.

The kitchen is only included in the financing because it was always said: No problem. But it seems it actually is.

We have now generally reviewed the numbers critically again and cut a few wishes as well as the more than generous buffer. We are now at a requirement of 520k. On the other hand, still quite a hefty sum.

To be honest, I don't understand why you have to fight so hard for the financing. You really have a solid amount of equity, and the loan amount is nothing special. Do the banks know that your wife's income will soon be significantly reduced (for a certain period)? If so, I can imagine that this is the reason for the rejection. Maybe not officially. A better situation would have been to get the construction financing first and then the pregnancy. But of course, that's easier said than done. Good luck. I still believe that you will get good financing. The equity is simply too good not to get financing.

No. That is not known. It was also not planned that both would happen in parallel, meaning house construction and/offspring. But that's how life goes. Luckily, we have set aside reserves for that and have family in the area.

What I can imagine is that the building area is not yet known as a hotspot to the direct banks, although prices there are skyrocketing.

And presumably, banks have become more restrictive because of Corona. That and, as you already said, the loan amount plus the fixed term make it more difficult.

It is probably quite simple. The house is too expensive/large for the region. There are market adjustment discounts that cause the property value to collapse. You will need a lot of luck to find a suitable bank that wants to finance at a high level (probably with an interest surcharge).

Which would mean that despite the increases in the standard land value, banks no longer see an endless boom everywhere – otherwise it wouldn’t be a problem to approach €540,000 with a plot of just under €200,000.

But maybe "property value" only referred to the situation in relation to your current circumstances, meaning that this value does not fit your household income? Without the temporary contract and upcoming parental leave (3 years?), things might look different.

Honestly, I don't understand why you have to fight so hard for the financing. You really have a solid amount of equity and the loan amount is nothing special. [...] Good luck. I still believe that you will get good financing. The equity is just too good not to get financing

But the equity is tied up in a plot of land. If the bank now values the location of the land very differently and does not fully apply the current market situation, the equity automatically "shrinks" in relation to the house. And almost 200m² is also not the typical standard 160m² family house from the general contractor, which always works. Maybe that also plays a role? How "special" is the architect-designed house?

But maybe "object value" just referred to the situation in relation to your current circumstances, meaning that this value does not correspond to your household income?

That may of course be the case, although the pregnancy/parental leave is not known (parental leave would be 12 + 2 months, followed by daycare).