Do you have to use the entire construction loan completely for the house?

  • Erstellt am 2010-12-02 16:05:29

Manu

2010-12-02 16:05:29
  • #1
I wish you a nice good day,

we have been considering for some time that we will build within the next 2 years. My previous understanding was always that if you get a construction loan of €150,000 from a bank, this money must be used exclusively for the house and you have to prove that.

However, a friend told me that you can take these €150,000 but only use €130,000 for the house, because you do the interior work yourself and can keep the remaining €20,000 as capital for yourself, for example to invest, without having to prove that you used the entire €150,000 exclusively for the house.

Is my understanding correct or wrong?
 

maccus

2010-12-02 16:42:53
  • #2
Yes and no, it depends on the bank. Some want all the invoices and only then approve the loan. With others, you can dispose freely as your friend said.

Maccus
 

HansPeter67

2010-12-13 15:28:54
  • #3


Yes exactly, it depends on the bank. But even if the bank generally allows the loan to be used for other costs, you must absolutely pay attention to what is stated in your contract! You must not violate it under any circumstances, otherwise you may have to pay hefty penalties!
 
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