Construction financing tight / unfavorable situation

Hello dear forum members,

my wife and I have unfortunately faced several setbacks in recent months. As a ray of hope, we have now received approval for our dream plot, but unfortunately the current poor situation is playing a trick on us.

We need to purchase the plot soon and already have house plans. Currently, only I am employed and my wife is a homemaker, but that will change again. The bank is currently only approving a loan that is too low -> due to the monthly burden. However, our household budget is significantly below our actual calculation (proven and adhered to over many months).

Do you have any tips on which bank might still grant loans with lower repayments, so that the dream can come true? We understand that this is riskier, but we are currently forced into this and the situation can only get better. We are currently missing about 70,000 euros for the loan amount, with 10% equity from the loan amount.

Thank you very much..

Hello,

that is of course a difficult question. What scale are we talking about?

The problem will probably primarily be that the new credit guidelines from March 21 no longer give banks any leeway. Our advisor basically said that where there used to be discretionary leeway (personal circumstances, longtime customer, solid history), the new system says NO.

10% equity is also quite little. They are not even enough for incidental construction costs or furniture (kitchen) or moving + possible double burden.

Don't make yourselves unhappy.. if the bank already says no, that's very clear. Banks are currently basically just handing out loans because they rely on the interest (keyword: ECB and negative interest rates!).

Better do something else.. buy a small apartment, go on vacation or or or :)

Which amounts are they? What do you have available, what do you spend monthly? A few more details would be nice. Otherwise, go to other banks or Interhyp/Dr. Klein.

Hello, every bank has its household budget calculation which is almost identical everywhere. Is there no possibility to first only buy and finance the land and then start the construction afterwards? I suspect the wife's missing income is decisive here....

I wouldn’t build now if I were you.

If it is financially possible and there is NO obligation to build on the property, it makes sense to consider buying the land now and building later. Weigh this up carefully.

Many people buy a plot of land first and build (much) later. This creates a good foundation, also emotionally, and allows you to approach the rest calmly and thoughtfully.

Best regards
Thorsten