Construction financing - Your experiences and tips?

Thank you for the answers, especially pleasing when they come from an industry expert. In my initial post, I still had a question - admittedly poorly formulated. If I apply for the kfw-40 loan (Loan No. 124), it will be granted by the kfw Bank. This bank is independent. For the remainder of the external capital, I need another construction loan, whose conditions will naturally have to worsen significantly because I can offer fewer securities since I am already in debt with the kfw Bank, right? So I MUST find a bank that cooperates with the kfw, correct?

Side question: At this moment, the homepage of the kfw shows 3.56% interest for the above-mentioned loan number. There is no longer any subsidy visible?

The rest of the debt capital is another construction loan, whose conditions, however, must of course deteriorate significantly because I can offer fewer securities since I am already in debt with the kfw bank? So I MUST find a bank that cooperates with kfw, right?

?

In my initial post I still had a question - admittedly poorly formulated.

But you were also asked well-formulated questions that you do not answer at all.

I would say: with your own estimate of managing €1600, you hardly achieve any significant repayment over 10 years with construction costs of €600,000. Haven't you been to a financing advisor yet? That's how it is, it puzzles me that you make an estimate but a building permit is already in place. What does the expert say about the construction costs? . . Usually, it's not enough. They often come in higher than calculated. so far? Quotes in the wrong order: You have a high standard of living that you want to maintain?!

Only "max." €430k need to be repaid, but no, we haven't been yet. I thought it was better to do this when a concrete offer is available. That should be the case by the end of September. I don't understand, how else should one make an estimate? With an unauthorized project, there are quite a few question marks. The plot is elongated in shape; there is actually no other way to arrange it, or rather the one with the least filling (=cheapest) has already been chosen. It was important that it be approved this way because it looks good and fits best into the existing structure. The top floor tenant basically disregarded the BB plan, which is why strict adherence would have looked ridiculous. But this is all off-topic. Well, if the offer prices get out of hand, I consider reducing them to be approvable. Earthworks are hard to estimate; I have broken down my estimated prices as well as possible. If I have estimated any position ridiculously here, feel free to correct me. Yes, as of now, I do not want children; my partner feels the same. Whether these views will change, I cannot say yet.

Only a maximum of €430k needs to be repaid, but no, we were not there yet. I thought it was better to do this when a concrete offer is available. That should be the case by the end of September.

For me, a calculation approved by a professional is the basis for a request and comparison at a financing bank. Once things become clear, the planning becomes more detailed, especially the house planning, which then adjusts to the size of the calculation. Only then does it get serious and the building application is submitted.
You cannot simply reduce a 160 sqm house to a 130 sqm house, unless the 30 sqm to be cut are separately located in an extension or basement and can be removed without replacement.

When I apply for the kfw-40 loan (loan no. 124) it is granted by the kfw bank. This bank is independent.

No, the loan is given by the Sparkasse or Volksbank or ING. Full risk for this bank. It only obtains earmarked funds from the KfW and is paid a margin for that.

I need another construction loan for the remaining external capital, whose conditions must of course deteriorate significantly because I can offer fewer securities since I am already in debt with the kfw bank? So I MUST find a bank that cooperates with the kfw, right?

No, the KfW loan is usually considered subordinate by the bank. And almost every bank actually cooperates with the KfW.

Side question: At this moment, the kfw homepage shows me 3.56% interest for the above loan number. There is no longer any subsidy visible?

That is only the homeownership program. You mean the climate-friendly new construction with number 297.

It was important that it be approved this way because it looks good and fits best into the existing stock.

I actually don’t plan a house based on how “good it looks,” but according to my room program and the conditions of the plot. Then combined with my budget. I have to live in it, and in the end I don’t care how well it fits into the existing stock. If it fits, I’m happy. If it doesn’t fit, I don’t care either.

Well, if the offer prices run out of control, I consider shrinking (the size) to be approvable.

Approachable, yes. But I had also already written that almost always the houses are no longer reasonably usable if you just make them smaller.

Why should a civil servant in their early 30s necessarily have paid off a new building after 30 years? I don't really see this necessity now. You can just as well aim for closer to 40 years and optionally make special repayments or alternatively save equity in stocks. It's better to work with a lower installment that also leaves room to breathe if, in the mid to late 30s, a sudden desire to have children arises. But: It is of course smart to cut out any frills in order to keep the loan amount as manageable as possible from the start.