Desired financing possible despite Federal Financial Supervisory Authority hammer, 0 KfW funding, etc.?

Hello dear home builders,

brand new here in the forum, I would also like to ask for an assessment of whether the financing of our little dream could be feasible as we imagine it – because thanks to the current developments by the Federal Financial Supervisory Authority, KfW "bankruptcy" and so on, we are unfortunately very unsettled, but our plans are already so far along, we have the provider, the construction specifications, the contract at hand...

Here are our details. I can actually say that the cost of living and so on are correct because I have been doing a monthly cash check and cross-checking every expense for half a year now.

General information about you:

[*]Who are you? M + W, happily unmarried
[*]How old are you? 29 + 32
[*]Are there children? no
[*]Are children planned? no! :)
[*]What do you do professionally? She: technical editor publishing industry, He: public service employee
[*]Are you employed, self-employed, retired, housewife, househusband, etc...? both permanently employed (she recently changed jobs, still in probation and fixed-term)
[*]How many hours do you work? both 40

Income and asset situation:

[*]What income do you have (gross/net)? Net: €2325 and €2658 + 13th-month salary, so roughly just over €5000 monthly
[*]How much equity do you have? currently €20,000 plus land valued at €37,000
[*]How much equity do you want to invest in the house project? all available, and when the time comes next year, another approx. €30,000 savings for incidental costs and the "final touch"

Expense situation:

Monthly housing costs:

[*]current cold rent
[*]current warm rent = 790
[*]electricity + gas = 90
[*]water, sewage, waste fees, street cleaning -
[*]phone, internet, mobile = 60

Monthly mobility costs:

[*]monthly ticket for bus and train (also for children!) -
[*]car loan (or savings rate for new car) -
[*]liability insurance 50
[*]taxes 20
[*]fuel 30 (little used + monthly fuel vouchers employer)
[*]repairs 20
[*]others

We barely have insurance costs:

[*]private health insurance (also supplementary health insurance, daily sickness allowance, etc.)
[*]liability insurance (also pets) = 5
[*]capital or term life insurance = none yet, maybe in the future possibly 10 €
[*]pension insurance (also Riester, Rürup, etc...)
[*]disability insurance
[*]accident insurance
[*]household insurance
[*]legal protection insurance
[*]other insurances (like travel insurance, funeral insurance)

Cost of living:

[*]groceries = 450
[*]restaurant costs = none, saving mode!
[*]care/drugstore = included in groceries (I always write expenses together because we partly buy groceries in drugstores)
[*]pets (food, vet, medicine, stable costs) = 130
[*]clothing = 5, if at all???
[*]club fees/fitness studio = 5
[*]tickets (football, cinema, concerts, etc...) = 5

Savings:

[*]vacation = max. 500 euros/year, saving mode!
[*]house = everything possible is saved for this = from March 2022 monthly at least 2,500 euros

Other expenses:

[*]Anything forgotten? Then please specify here at the latest! I hope not – otherwise feel free to ask! :)

Income and expense totals:

[*]total income = €5,000
[*]total expenses = €1,670, if vacation €1,711
[*]balance = + €3,310 / €3,289

General information about the property:

[*]How large is the plot? 758 sqm
[*]What are its dimensions? uh ... rectangular :D neither too wide nor too narrow...
[*]What is the standard land value? 50, I think, we got the plot cheaper because I grew up in the village :)
[*]New build, old building (year of construction), house type? should be newly built, detached single-family house with cistern
[*]Garages? no, simple parking space
[*]How big is the house? (living area / usable area) 127 sqm
[*]What is the market value of land and house after completion? probably just under €420,000

Construction or purchase costs:

[*]land costs = €22,000
[*]development costs = €15,500
[*]incidental acquisition costs (notary, court, real estate transfer tax, broker) = €1,950
[*]construction or purchase costs (incl. architect, structural engineer) = offer of gross €381,000 (yes, seems expensive, but includes base slab and complete earthworks except disposal, ecological insulation and KfW40 EE, built with high-quality materials, etc. and FIXED PRICE without recalculation ;))
[*]renovation and/or refurbishment costs
[*]additional construction costs (e.g. connection fees, soil surveyor, construction power, etc.) = just under €25,000
[*]outdoor facilities/terrace, paths, garden design, fences, etc... = another €15,000 (also intended as buffer...)
[*]financing costs (e.g. fees or provision interest) not yet assessable...
[*]total costs = €501,000

other costs:

[*]kitchen costs = max. €10,000, will be covered by the best dad first :)
[*]furniture, lamps, decoration = initially using our own stock, lamps about €1,000
[*]other "non-acquisition, acquisition-incidental, construction or additional construction costs" = possibly buffer of €5,000 planned

Cost summary:

[*]total costs = €501,000
[*]deductible equity = with land & own contributions amounting to €20,000 (filling, painting, flooring, sanitary objects, interior doors) it will be €108,000 in the end
[*]financing amount = €392,000

We have already had talks with a few banks and advisors, but have not yet received a final offer because some documents from our house provider are still missing. All sounded very satisfied as long as this is not a general trick. Our dream conditions would be roughly as follows:

interest fixation (15-)20 years
full repayment in approx. 26 years
special repayment option at least €5,000/year
repayment rate: 3%
monthly installment: around €1,600

Idea behind it: we can easily afford the loan, would take the annual special repayment without much effort and would ideally be finished in 20-22 years (he gets a little more annually thanks to TVöD, which is really a blessing for which I am super grateful!!! We both come from different backgrounds and are happy about this new security).
Actually, the house is already incredibly present in our minds because it has been self-planned from the start and re-planned 10+ times, but I am very curious about your opinions & experiences regarding the financial feasibility: Will it go so smoothly? Is our calculation completely utopian at any point? Should we do/plan something differently? We have meticulously researched all incidental costs, called everywhere, asked around and are quite confident about that. Additional buffer amounts are intended to further guarantee that everything goes smoothly. Does the bank possibly already need a guarantee or similar for the equity so that we really have the planned savings amount of equity together by the payout/use on day X? Or does the future amount not count as equity in the end?!
Questions, questions... A thousand thanks in advance for your answers!

Kind regards
Mallow & Milou

You can roughly get 400,000€ for 1,600€, the costs are currently rising at a record pace. This should be possible with your income.

Pitfalls from my point of view:
- Temporary employment including probation period
- Household budget not convincing: even with a house you will want to get food outside and certainly buy clothing for 2 people for more than 60€/year
- If one salary is lost, the financing is at risk

For your information: Future equity does not exist. It either exists now or not.

I also see your list as incomplete. No car costs, municipal additional charges, insurances are missing (both no disability insurance?) etc.

But there is still room between your nicely calculated list and the targeted rate....

Go through your costs again calmly, expect higher demands (you don’t live 25 years on a tight budget!) and deal with ongoing additional costs (property tax, waste, gas, etc.)

I am afraid I also believe that your household budget is not sustainable. Don’t you need a new car at some point? For 2 people, 60 € per year for clothing? Permanently? Don’t just look at what you spent in the last six months. Surely you don't want to stick to strict savings until the end of your life :D

I noticed the unrealistic household budgeting regarding the topic of vacation. 500€/year is nothing. We like to go camping, but even there 500€ is not enough for 1 week in Italy. Also, I didn't understand how the 108k deductible equity is calculated? But even with a somewhat more realistic expense plan and a 50-100k loan, I see the whole thing as feasible.

Good morning,

I agree with the previous speakers. You are just starting to save, it seems to me. Even vacation clothes etc. are being cut back drastically.

Sorry for the comparison, but for an addict it would be a much harsher cold turkey withdrawal.