Financing construction projects including interim financing

  • Erstellt am 2021-04-11 13:46:20

derkorken

2021-04-11 13:46:20
  • #1
Hello everyone,

The following situation: It is planned to purchase a new semi-detached house from the developer around March 2022. We, a married couple both working in the public sector (both 42 years old) with two children, have a net income of €6,200 per month including child benefits. Of that, €400 goes towards private health insurance, so a final equity of €5,800 is available.

Regarding the facts:
Purchase price semi-detached house including incidental costs: €435,000
Equity in tied form of a fully paid-off condominium available. Market value according to the realtor approx. €125,000.
Bank balance €26,000

As mentioned, we want to buy a house in March 2022. We want to inquire about an interim financing/variable loan using the paid-off condominium in the amount of €100,000 to have equity available. The plan is to pay the incidental purchase costs of €35,000 with this and to directly contribute €65,000 to the financing. In the end, there would still be a financing amount of €335,000.
Monthly we want to use €1,500 for servicing the construction financing.
Now to my questions:
Is it realistic that a bank will recognize the condominium as interim financing and provide €100,000 based on the market value of €125,000?
Is it possible to use funds from the interim financing to pay the incidental purchase costs (notary, property transfer tax, etc.)?
What is your general assessment of the project? What are the chances of getting a reasonable financing?

Thank you very much in advance.
Best regards
M.
 

nordanney

2021-04-11 13:51:00
  • #2

Yes.

Yes.

Very healthy ratios. Any bank will be happy to finance.
 

HilfeHilfe

2021-04-12 07:28:16
  • #3
normal procedure. How do you want to refinance the bridging loan? Sale of the apartment?
 

derkorken

2021-04-12 07:50:32
  • #4
Yes, the apartment is to be sold and the bridging loan is to be repaid with it.
 

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