Consumer credit for land purchase?

Hello everyone,

We have received approval for a plot of land (for a semi-detached house in the new development area). Our equity is not quite enough for the land purchase (about 50k of the total 125k is missing), but we want to start building no earlier than in 2-4 years, so we need bridge financing.

A financial advisor suggested a consumer loan (interest rate at 5%, special repayments or full repayment possible at any time free of charge, term 85 months), but the loan conditions state that the loan may not be used for land purchase or real estate. The financial advisor said that wouldn't be a problem(?).

Another advisor warned against this (it could spoil the Schufa score, so that in the end, you get worse conditions for the actual construction financing) and rather recommended a classic bridge financing with variable interest rate. The problem here is that at least 100k would have to be borrowed (concrete regional bank) and the current interest rate would be about the same as the consumer loan.

What would you advise us? Rather a loan with a variable interest rate and repay with equity as early as possible with special repayments to reduce the interest burden? Inquire at other banks to possibly get bridge financing at better conditions? Or risk the consumer loan?

A brief note on our motives: we have been desperately searching for a house or a plot of land for a long time and want to take the certain risk and seize the opportunity now (there is a building obligation, in the worst case, we would lose between 10k and 12k if we return the land). We don't know how things will look in 2-4 years; it is quite possible that the dream will fall through because it's not financeable. However: if the situation relaxes even slightly, we will probably be the last to get a plot of land (too few children, too high income, not native enough in neighboring municipalities, and in our own municipality, being native or working there counts, but not otherwise...).

On what grounds is the consumer loan not allowed to be used for the property? That somehow doesn’t make sense. If you now had 125k saved up, you took out such a loan, and then used your 125k for the property and the 50k loan for a world trip, that wouldn’t really be any different than if you took out 50k and put it directly into the property. Does it really say that in the conditions? Apart from that, it would at most damage your Schufa score if you haven’t fully repaid it by then. If it’s paid off by the time the house is built, it can even have a positive effect on the Schufa. Assuming the Schufa still exists in that form then, since that is currently a bit uncertain.

On what grounds is the consumer loan not allowed to be used for the property?
That’s somehow illogical. If you now had 125k saved up, you would take out such a loan, and then use your 125k for the property and the 50k loan for a trip around the world, that wouldn’t be any different than if you borrowed 50k and put it directly into the property.
Is it really stated like that in the terms?

Yes, I wondered about that too... but it really says so: ...

"Restriction of use
The borrower is not allowed to use the loan for the acquisition or maintenance of ownership rights to land, existing or to be constructed buildings (...)"

It somehow leaves a bad feeling.

Hello, conclude a classic construction financing with a term of 5 years absxchließen

Off to the loan broker. Those who inquire directly at banks are throwing money away.

From 50k you can get real estate loans. I would specifically inquire/search for that and compare the interest rates for variable loans with short-term loans, for example 3 years.