Financing house construction without equity

Hello experts ;)

We are a family of four, by the way, I am "only" 27. We have an income of around 2900 euros (increasing). Two children. We don't have much equity yet due to many moves in our married life. A few thousand euros, no more.

Now the question is: Where would the limit be set for the loan? When is it basically over? We live a normal lifestyle, rather frugal, without benefits like a company car or wealthy grandparents ;-)

Thanks!

Regards Questionmark

Only you can know that, since only you hopefully know what will be left at the end of the month. 2900 is not too little, but maybe also not enough. 4 people have their claims.

There is a kind of guideline: a secure financing costs 500 € per 100,000 € loan. Since you are standing there completely without equity, the situation will certainly be harder, and also more expensive.

You can also pay off a good 250,000 € with 1000€ like we do, but that only includes a repayment rate of 1%, the rest we do through special repayments. That is then another 5000 to 10,000 per year.
Unfortunately, with 250,000 you won’t be able to build a house with land, unless you build completely out in the sticks.

It is a semi-detached house 110m² with a plot area of 250m².

Cost of the house: 210,000 Euro + 10,000 garage
House connection: approx. 15,000 Euro
Property transfer tax and all other costs I will simply say 35,000 Euro.
That brings me to 270,000 Euro.

The house is near Aachen.

1% repayment is of course not much, hm the idea with the special repayments is quite nice.
So depending on how much one has used, one can repay or not. Or?

Which bank is even recommendable, especially with regard to "without equity"?

How secure are your prices?
Guessed, or already an official offer? What about the additional costs that are not included in the basic package of your general contractor [GÜ]?

I assume you need something around €300,000 as a loan. That means your monthly burden is about €1200 or more, I don’t know the current interest rates. Then add housing ancillary costs of about €350, leaving €1400 monthly for 4 people. How high are your other liabilities? Childcare, cars? Clubs?

I don’t see how you want to save €5000 or more per year here. Is the child benefit already included in your income? If so, calculate that out. The children will need that. If not now, then later.

First, you have to clarify with a bank, or better with a financial advisor, what you can afford. The next step is to find out what the house actually costs, and that is an equation with many unknowns. Even things like fixed price guarantees only apply to things that are listed in the contract. You never buy a complete house, but a sum of individual trades. If your provider decides not to include expensive trades in the contract, you have to pay extra for them.
Unfortunately, there are no rules from the legislator regarding this.

how much of the 210,000 applies to the property? What is the standard land value in the area?

With 1% repayment, special repayments should not just be "nice to have," but be used. ;) Otherwise, it takes 40 years or more to pay off the house. But if financially no more than 1% repayment is possible, how should the special repayment be saved up? And if you want to come under a 30-year term, the annual special repayment should be at least 3%.