Curious financing idea

Hello,

my partner and I, 27 and 24 years old, with a net total income of €4,100, would like to purchase a two-family house.
We could acquire this house for €360,000, with planned renovation costs of €45,000. Notary and GeS additional. The second apartment is to be rented out after the renovation is completed (4 rooms, 90 sqm).
We would receive equity of €50,000 as a private loan from the father-in-law.
According to the bank, this is feasible.
The question now is:
We would actually like to repay the private loan as quickly as possible and would like to include it in the mortgage. Is this generally possible? Or fraud? (Basically financing requirement €480,000 -> bank loan €430,000)
Another idea would be to bring his parents into the second apartment, and thus quasi a residence permit = loan repayment for a certain number of years.

Since the father-in-law actually still wants to buy himself, we cannot say when he will need the €50,000 back. Therefore, we do not know if installment repayments would be possible.
Is this completely crazy or is there a way to realize our dream?
Renovation matters are not a problem at all; everything is affordable, feasible, and planned.

According to the bank, feasible.
The question now is:
We would actually like to repay the private loan as quickly as possible and want to include it in the credit. Is this generally possible? Or fraud? (Basically financial need 480,000 -> bank loan 430,000)

Huh? Above you say the bank knows the plan and finds it feasible.

It only approaches deception if you hide the repayment of the 50,000 loan, but the bank will probably ask anyway where 50,000€ comes from at once (keyword money laundering).

Is this completely insane or is there a way to realize our dream.

I would only find the plan insane if it is unclear who needs what money within the family and when. Regardless of the variant: Make a contract!!! Also inform the bank about the variant. You all need binding regulations so that the family does not want 50,000€ back all at once after 2 years.

In your situation, it is actually 480k€ that you have to repay *period*. From your father-in-law's point of view, come what may, his 50k€ will have priority over the bank loan, especially because he still wants to buy himself.

Personally, I consider 480k€ without own equity and with that salary unhealthy. The bank may finance something like that because they want the business. As a homeowner and borrower, I can only advise against it at the moment.

Where is your equity and how do you come to 45k€ modernization costs? Do you have children?

Feasible means nothing other than modest conditions and only if you get the 50k€ from your father-in-law. Otherwise, the matter would be closed; it would also be closed if you declare the 50k€ as a private loan and register it in the land register. As long as your father-in-law is not in the land register, the bank does not care. In case of enforcement, the father-in-law will get nothing back anyway!

In other words, a contract would make no sense for him. So you might as well write it on toilet paper; it has the same effect.

Poorly phrased by me. Please excuse me. The bank knows the plan and is aware of the private loan from the father-in-law, but thinks that 100k renovation costs are targeted... thus it is deception to my knowledge. No, without equity it is 430k€. 360 house 20 notary total 45 renovation. total: 430k Our equity is not much on our side yet. About 9,000. Therefore the equity through the private loan. We basically wanted to cover the private loan through the bank loan. (Because we don’t know how quickly the money will be needed by the father-in-law) That was a thought from us. It only occurred to us afterwards that this might not be entirely legally sound. Therefore the inquiry, because we are not sure if this is feasible. No, we have no children. My partner’s boss does this professionally and has inspected the house. Afterwards we added up and worked out these renovation costs including a buffer.

We basically wanted to cover the private loan through the bank loan. (Since we don't know how quickly the money will be needed from the father-in-law)

This is just a layperson's opinion. If that is the plan and has been communicated to the bank, then it doesn't matter whether you finance the €50k directly through the bank or later repay it "in a roundabout way" via the bank loan! The conditions in both scenarios would mean a 105% financing! That means repaying €480k, with a moderate salary for such an amount and currently without children. And no, the €50k is not equity capital; it is just another loan for which your father-in-law has no security. Equity capital would be a gift of €50k. That is very far from a healthy financing, are you aware of that?

Equity is supposed to reduce the loan amount. So what’s the point of receiving 50,000 "equity" from the father-in-law but at the same time increasing the loan by 50,000?!