Credit criteria for a house renovation

Hello forum,

I am currently expanding a farm and would like to take out a loan once everything is notarized. The house is family-owned and will be transferred to me. The construction will be done entirely by myself. It is planned to develop the first floor and attic. A dormer and loggia are to be installed in the attic. Now my question (which no one has been able to answer yet). What exactly is needed to get a loan? Is a construction drawing enough or do I need to have a proper project plan created by an engineer? What is important here and what do I not need? What kind of structural engineer do I need (or is one necessary at all)?

I would be very grateful for an indication of which direction this is going. I would also need to know approximately how long something like this takes. PS: Of course, I am keen not to spend money unnecessarily on useless structural engineers, etc. I just want to obtain the most important documents to get the loan.

Thank you!

Hello,

I am currently renovating a farmhouse and want to take out a loan once everything is legally notarized.
The house is family-owned and I will have it transferred to me. The construction is entirely self-performed.

Does the building authority know about your plans and have they already given a positive (verbal) response?

The plan is to convert the 1st floor and attic. A dormer and loggia are to be installed in the attic.
Now my question (which no one has been able to answer): What exactly is needed to get a loan?
Is a construction drawing sufficient or do I need to have a proper project plan created by an engineer? What is important here and what do I not need? What kind of structural engineer do I need (or is one even necessary)?

You are planning changes - if you get a building permit - in a public space. Of course, this requires approval from the responsible authorities. For this, it is necessary that a structural engineer informs himself about the current situation on site; you say nothing about how old the farmhouse is. Based on his calculations - I assume the old documents are no longer available? - the architect can draw the designs according to your wishes and feasibility. These are then compiled into a regular building application and submitted to the responsible authority for review. Only after presentation of the permit free of conditions may you - whether by contracting or self-execution - begin the conversion!

To avoid unnecessary trouble, it is advisable to have a preliminary discussion with the building planning office about the feasibility of your plans. If things go badly, the planned conversion may fall under the old age exemption, and then you will not be able to do what you want for a long time.

I would be very grateful for a statement about the overall direction of the whole thing. Also, I need to know approximately how long something like this takes.
PS: Of course, I am committed to not wasting money on unnecessary structural engineers etc. I only want to get the most important things to obtain the loan.

It takes as long as it takes; you surely are not out on the street? No one can answer that question because we know nothing about the specific circumstances.

You have rather strange ideas about what it means to invest money “pointlessly.” I personally would not like the roof over my head to collapse just because I supposedly saved money on a structural engineer who would confirm the building’s stability.

And - btw. no bank will give you money just because you perhaps have a pretty face or your ideas are charming. They want to know very exactly how and what the money will be invested in!

Regards from the Rhineland

Thank you for your reply. I will try to answer everything.

- the building authority knows nothing about my wishes
- changes are planned in the roof area ([Gaube], [Loggia]) and generally concerning the location of the current walls (regarding layout, load-bearing walls etc. is already clear)
- the courtyard dates back to 1886
- currently my parents live there and the 1st floor has become free (grandma), the attic is so far uninhabited and not yet developed
- we started building a long time ago, we have installed water, sewage, heating into the attic, leveled the floor, insulated, clad with OSB
- now it’s just a matter of running out of money slowly. Therefore we have to apply for a loan. The house will be transferred to me in the next few weeks, until now it has been in family ownership

I meant the thing with the structural engineer in the way that officially we don’t need one. My boyfriend is a carpenter, my uncle is a roofer, another uncle is a master plumber. We also have structural engineers in our circle of friends who give us advice. I want to find out what I really need for the loan. I know there are many things to consider, but we do have the experience to build it ourselves.

...What exactly is needed to get a loan? Is a construction drawing enough or do I need to have a proper project plan created by an engineer? ...

Your trusted bank can certainly answer that best... Have you already thought about public funding? Especially interesting for energy-efficient renovation/conversion/modernization. Which ones you can apply for and what requirements are necessary can also be found out from your bank. However, keep in mind: ALWAYS APPLY BEFORE THE START OF CONSTRUCTION, so plan accordingly and discuss with your bank. In addition, in this case, you are certainly better off with a PLANNER than trying to do everything yourself.

Hello TinaW,

the easiest way to find out what kind of loan you need is quite simple. Make an appointment at the bank. Explain to them that you will soon be transferred a house and that you want to remodel it. They will then tell you what they require in order to approve you a loan.

Regarding the other procedure, this is of course illegal. You must first obtain a building permit before building. This mainly affects the points of energy efficiency and building services, the design of the house, and utilization. I suspect the last point to be unproblematic, energy efficiency and building services refer to your type of heating and the insulation of the newly created living space, and the design refers to the dormer windows. For these points there are (at least in southern Germany) clear guidelines and opinions from the authorities.

In a regular procedure (i.e. first clarifying the requirements and planning) it quickly becomes apparent during the planning phase whether a structural engineer is needed (which in timber construction can often also be calculated and drawn by the carpenter).

Kind regards

K.Brodbeck

Hello,

- the building authority knows nothing about my wishes

Bad and saving time in the wrong place.

I meant the matter with the structural engineer in the sense that officially we don't need one. My boyfriend is a carpenter, my uncle is a roofer, another uncle is a plumbing master. We also have structural engineers in our circle of friends who give us advice.
It's about finding out what I really need for the loan. I know there are many things to consider, but we definitely have the experience to build it ourselves.

This is not about you doing the work yourself or being able to rebuild a lot on your own. You are making an intervention in the existing building fabric – your friends especially should know that a building permit is required for this. If you have a structural engineer in your circle of friends, just ask him whether his services are necessary for your planned remodeling measures; where is the problem?

It looks different at the bank; they want to know very precisely – aside from securities – what they should grant you the loan for. I could even imagine that an expert commissioned by the bank will inspect the existing property before final approval of the funds is given. KFW funds could also be interesting; ask an independent financing broker about this; house banks generally have difficulties with KfW funds.

Above all hangs the fate of the building authority responsible for you. For example, what if the responsible caseworker is not enthusiastic about your project – e.g., installing a dormer and loggia? Or if the planned remodeling measures fail because the yard is subject to the agricultural retirement regulation. There are many “unknowns” that have to be clarified in a conversation with the responsible people … before you start thinking about a loan. Especially with extensions/additions/remodelings of old farms, I have already experienced some surprises.

If, on the other hand, you believe you know everything better – as your last sentence reads – then why are you asking here?

Rhenish regards