Finance property variably without a mortgage

Hello dear forum members,

I would need your opinion on the following scheme:
we buy a plot of land, which will then be built on as quickly as possible with a house for owner-occupation.
For these reasons, the plot is initially financed variably. The house project, construction company, etc. have already been found and clarified, i.e., the variable financing should be converted to an annuity loan together with the house construction financing a few (few) months later.
The key data for the variable financing:
- 100% financing, equity goes to additional purchase costs + development
- Purchase price €180,000
- No previous property ownership
- Family net income approx. €7,500 (including parental/child benefits, the builder is currently on parental leave, afterwards €8,500).
Now comes the main question: would this variable land financing be possible in our situation without registering a land charge (even with higher interest rates)? That would give us much more flexibility when converting to an annuity loan.
If it is possible, does anyone have experience with which banks it would be possible?

Many thanks for your tips!

Best regards
Nils

I think that only works if the loan is under 30 thousand, otherwise not. I'm not an expert either. We also pondered back then what would be best and then borrowed money from family in order not to take out a land charge or a loan. But if you plan to finance the construction with the same bank anyway, then the land charge doesn't matter anyway.

I think that is only possible if the loan is under thirty thousand, but otherwise not. I'm not an expert either. Back then we also pondered what would be best and then borrowed money from the family to avoid taking out a land charge and a loan. But if you are planning to finance the construction with the same bank anyway, then the land charge doesn't matter.

I think that with that income it's also possible with larger amounts. There are even consumer loans that go up to 50k and that you can partly use as you wish.

We did exactly that, variable without a mortgage, financed with 80K€ (approx. 80%, additional costs from equity). The local Sparkassen are quite flexible there.

With a purchase price of €180,000 for the land, and without equity (so you also need the €180k here), there are 2 options left:
- variable financing (advantage: with the house planning you can choose the bank)
- fixed-rate financing (local savings bank/ Volksbank) then with 1 year = you are bound to them for one year, but you can still choose all banks, since the 1st lien goes to the new bank at the latest after one year (so for many no problem)

or, because the interest rates are rising so strongly...
immediate fixed rate...
advantage:
if the interest rates are 0.50-1.0% higher when you plan the house, you have at least part of it cheaper
disadvantage:
you are tied to one bank, i.e. you have to finance the house construction with them as well.

and with €180k it will only work with one bank as real estate financing... some banks can do private loans up to €75,000, but if you need €180k, that won't help you...

BUT the question I ask myself:
if you have already found a construction company etc., why don't you do the complete financing?

or should it say above: "until you have found the construction company etc.?" therefore for the few months bridging?

BUT the question I ask myself: if you have already found a construction company etc., why don't you do complete financing?

Thank you for your answer! It is about precise planning and a detailed breakdown of costs so that the final loan amount becomes clear. This can take a little time because we have to finalize the project with our partner builders. The notary appointment is still pending, but everything can happen. We will only sign the construction contract afterwards and only if all details are agreed upon. A variable interim financing is therefore a somewhat safer option for me.