Construction Financing Offer - Combination Financing

Hello everyone,

we want to finance a house and unfortunately have not saved any equity.

The total requirement is €237,000 (house, modernization, incidental costs).

We have received an offer from a financing advisor and need to decide whether we can do it.

The financing proposal consists of the following components:

- Annuity loan €164,000, effective interest rate 2.94%, repayment 1.5%
- KFW loan €50,000, effective interest rate 2.17%, repayment 2%
- Private loan €23,000, effective interest rate 8.5%, repayment 3.5%

The private loan is necessary because we have no equity (statement financing advisor)

What is your opinion on this? Are these fair conditions?

Best regards, gostar22

How is anyone supposed to judge that? What do you earn, what do you spend, how long are you tied up, what is the cabin worth?

And the private loan is an outrage. If you earn well, definitely, if you earn poorly it is super cheeky.

I actually just wanted to know if anyone knows such combinations of 3 loans - [Annuitätendarlehen] + Kfw + private loan. Such combinations were offered to me by several independent financial advisors, with different conditions.

As I said, my problem is that we have no equity. 100% financing is not enough - therefore a private loan is being offered to us. Without a private loan, no one has been able to offer us a loan so far.

The house costs €218,000 + additional costs.
Net income is currently €3,200 per month.

That was also offered to us by the VR-Bank as an alternative to the home savings contract. One more reason to leave.

Under certain circumstances, even small personal loans can work if they result in better conditions on the annuity loan. But €23,000 is a significant amount. What I don’t understand at all is that if you repay only 1% on the annuity loan instead of 1.5%, you could repay 7% on the expensive personal loan.

Given the interest rates, I would rather ask relatives and friends if they want to invest money at 3-4%. Maybe they would even be happy to get more than 1.5% on their balance interest.