Curious financing idea

Sorry if I’m asking again now, Zaba12. Without equity, it’s 430k, right? So how do you get to 480? Or have I overlooked something to consider? Because even if we accept the money from his parents and the bank doesn’t screw us over, then we only need a loan of 380k € plus the private loan. Right?

Still sucks, doesn’t it?

I’m really grateful that you take the time. Banks promise you the moon, so I’m a bit overwhelmed there.

I also know people who have received a >100% financing. But there were two incomes of sufficient amount, which suggested a large monthly surplus...

But honestly, it is usually considered a "limit" here when the loan amount exceeds 100 times the monthly income. Anything above that is slowly but surely unhealthy. Calculate for yourself...
And the rental apartment... with bad luck it doesn't generate any income at all, but only stress, because you get a rent nomad or simply have vacancy...

Whether your father-in-law would basically pay the rent for x years in advance and move into the second apartment, only he can say...

You must truthfully state what you father-in-law is repaying

after all, it is also debt capital

otherwise, I wouldn't know how to manage the financing with the income

because even if we take the money from his parents and the bank does "not" get stuck with it, then we only need a loan of €380k plus the private loan. Right?

The bank is then in first position in the land register and it doesn’t care what happens with father-in-law’s money. If it is officially treated as a loan, the installment you have to pay will be factored into the household budget.
But it doesn’t work if father-in-law could basically show up at your place every day and demand his entire loan back. Where are you supposed to get the money from?

My parents also helped me cover the additional purchase costs. But they also said, give us back what you can, we don’t need it... and not, hey, we might need everything ourselves tomorrow!

Sorry if I ask again now, Zaba12. Without equity, it is 430k, right? How do you get to 480 then? Or have I overlooked something? Because even if we take the money from his parents and the bank "does not" get stuck with it, then we only need a loan of 380k € plus the private loan. Right? Still sucks, doesn't it? I am really thankful that you take the time. Banks promise you the moon, so I am a bit overwhelmed there.

You are right, then it is 430k€. Still remains 105%. As far as I understand, you get the 410k with interest on 100% loan-to-value. The remaining 20k€ is then handled via a regular consumer loan. With an above-average salary, such a construct is not problematic, because the uncertainty of the bank is compensated with a high repayment rate, so that the >100% quickly decreases. That is not the case with you, though. What rate or repayment in % do you have in mind?

How about letting his parents live in the apartment of the two-family house to pay off the private loan? That should work, right? Free housing, since we don't see any money, but paying off the loan?

Good idea to bring the parents into the house only for financial reasons. However, there is a catch - there is no free housing for relatives according to tax law. So if the parents live rent-free, you would still have to pay tax on the imputed rental income. So no income, but an additional tax burden.