Evaluation of construction financing offer with little equity capital

Because the banks do not take on the risk themselves.

Because the banks do not take on the risk themselves.

That would still be new to me that the banks consider that as equity.

Why is a KFW loan considered equity?

It is not, because it is a LOAN and not equity. It is merely a refinancing through the KFW, the risk lies with the bank.

BUT: In the past, many banks disregarded the KfW loan in the terms determination for the house bank loan. Today, however, this is practically the exception.