Financing with Labo Bayern

Hello everyone,
first of all, I have been reading here for a while now, as we have been thinking about the topic of building a house for a year.
The forum is very informative and I have already received a lot of tips.
Now, however, I would first like to gather opinions regarding my financing considerations.
Maybe a few facts first (which probably speak against it)
Equity: currently 25,000€
1x building savings contract 25,000€ ready for allocation
Income 3100€ net together per month (together without child benefit)
This is the absolute minimum contribution, as I work in sales and only want to count on my fixed salary. (Commission approx. 1000€ net per month) but this should be saved for possible special repayments etc. and is therefore not planned for sure)
Age: She 25, He (me) 26, both permanently employed with unlimited contracts (She works at the bank) I work in sales
She works part-time (30 hours) I full-time
Child 1 year old, married no more children planned.
We definitely want to stay in the region. Therefore, we also want to settle regionally at a young age.

Basically, we are thinking of taking out a loan of 300,000€.
I think this is a realistic amount in our region to build a small house, but I would also appreciate critical feedback on this.
Wish:
120 sqm living space, solid construction
2 full floors, fully basement.
Underfloor heating
Air-water heat pump
possibly central ventilation system.
We would design the outdoor area gradually ourselves or the plot is already partially overgrown with old trees.
Carport or similar can wait, we are young.
No frills, simple floor plan (I think most providers call it a city villa)
I calculate for the house including incidental costs 250,000€
Plot developed approx. 800 sqm 32,000€ (sqm prices are quite cheap here) approx. 40€ (region Upper Franconia district Hof)

Now my first question, which may not fit in this subforum. Are these realistic figures?
I would like to keep the equity as a buffer for a possible outdoor area.
I will get the interior equipment from the equity since I work in the furniture industry.

Now to the main point.
Since we are young and do not earn excessively much, we would have good chances of getting a Labo loan.
With this in mind, I assume the following.
90,000€ Labo Bavarian Housing Construction Program interest rate 0.5% term 15 years repayment 1%
90,000€ Labo Bavarian Interest Subsidy Program interest rate currently 2.02% term 15 years repayment 1%
120,000€ bank loan and here comes my question, since the Labo loan is not primary, one should get very good conditions at a bank since only about 50% is financed. (Am I correct in assuming this?)
Calculated like this, I assume that with a total rate of 1200€ per month, after 15 years there will still be 150,000€ left to repay.
So I would fully repay the 120,000€ with the bank in 15 years and then repay the two Labo loans afterwards with another loan, depending on the interest rate situation.
Is my explanation understandable up to this point or is there already a flaw in my considerations?

Thank you very much in advance for your help

If I assume a few flat rates:
Cellar approx. 50,000 euros
Additional costs approx. 50,000 euros
that means the house may only cost 150,000 euros.

But here come even more detailed listings of what costs how much.

Hello jfkgerd,

welcome to the forum.

First of all, I also see the house price with basement as critical. Is the price fixed? Do you already have an offer? Have you really considered all costs, especially the incidental building costs, which, as hbf12 already wrote, can amount to a good chunk of money.

Otherwise, it would be important to know what your expenses are like? How much can you really save per month? What is your current cold rent? Please also keep in mind that the child is still very small at the moment and will cause higher costs in the future. Also think of the higher additional costs, insurances, occupational disability/term life insurance (if not yet available). Will your wife stay at 30 hours/week long-term or is it planned that she will work full-time again in the future?
€300,000 loan is already quite a hefty amount, you are taking on quite a lot. As you can see, you would also have to refinance a whole lot after 15 years, and who knows what the interest rate will be then. Whether financing is basically possible and sensible cannot be said based on the information, especially the information about expenses/saving behavior is missing.
Since I am not familiar with Labo, I cannot tell you whether the Labo loans will eventually be excluded in the determination of the mortgage lending value or not, surely someone else knows better about this. Are you sure that you will be entitled to the subsidy? Especially when I consider that, as you yourself say, you have an average net income of at least €4,100 including your commission. That is quite a lot. But as I said, maybe someone who knows more or has financed with Labo themselves can say more about that.

Thank you for the quick feedback. So, we do not have a concrete house offer. I wanted to first think through the financial aspect before going into a specific house plan. These standard offers are of course available. The offers range from turnkey excluding painter and flooring for the mentioned house with a basement between 216,000 and 275,000. Of course, the equipment also varies significantly. I have no concerns about earthworks or anything like that because I would buy the plot from a farmer I know, who would also do the rough excavation and distribute the excavated soil free of charge on his fields, which would naturally be contractually recorded. About 30-40 cm of earthworks are usually included by the providers. Therefore, I would not set the incidental costs that high, in my opinion. The real connection costs are where I would rather be around €25,000. But better to calculate a bit more so that at least you don’t end up paying extra in the end. What we save: about €800 per month easily. Cold rent €550, so we need on average €1,750 per month. (I deliberately leave out my commission in all calculations) Why more has not been saved: big wedding and recently a new car was purchased, about €29,000. The Labo loan would probably only be possible this year, as an average value is calculated, if I am correctly informed. This includes the last 12 months. So far, part of my wife’s parental leave would still be counted. €150,000 are assumed with not a single saved euro to partially repay early. If the business runs well and I get my average commission every month (1000*12*15) I can largely pay off the Labo loans and we will have significantly less debt. But the next crisis will surely come, so I prefer to calculate pessimistically. My wife does not plan to work full-time again, as a household and a child are also enough work. BU/RLV are in place with very good conditions because we joined very early. What I forgot to mention but is nice: She gets 13th + 14th salary, I get a target bonus at the end of the year, but these are for vacation or other things.

Go to your responsible district office and speak with the caseworker. That will discourage you quite quickly.
I’ll write you my status from early 2012:
Unfortunately, the Labo stuff has the following disadvantage: You must be eligible for funding (which you apparently are), the house, loan amount, and planned living space must not exceed certain limits AND you must bring xx % equity.
In addition, Labo is only granted for concrete construction projects - that means when applying you already need a plot of land + a fully planned house (which actually requires a financing prerequisite - it’s a catch-22…).
The last disadvantage: Labo pays out a maximum predetermined share of funding - if this pot is empty you can try again next year (first come, first serve). So: First ask whether there is still anything left in the pot for you.
The two funding options had different requirement levels for us - we were immediately out with one - we just managed to meet the other, but its pot was empty.

Hello,

Basically, we are planning to take out a loan of €300,000.
I think this is a realistic amount in our region to build a small house, but I would also appreciate critical feedback on this.
Wish:
120 sqm living space, solid construction
2 full floors, fully basemented.
Underfloor heating
Air-water heat pump
possibly a central ventilation system.
We would design the outdoor area ourselves gradually or the plot is already partly overgrown with old trees.
Carport or similar can wait, we are young.
No frills, simple floor plan (I think most providers call this a townhouse)
I calculate €250,000 for the house including incidental costs
Plot developed approx. 800 sqm €32,000 (sqm prices are quite cheap here) approx. €40 (region Upper Franconia, district Hof)

Now my first question, which may not fit into this subforum. Are these realistic numbers?

Plot: TEUR 32
Townhouse, Kfw 70: TEUR 195
Usable basement: TEUR 40 incl. insulated heating cellarroom
Controlled residential ventilation with heat recovery: TEUR 9
Additional construction costs: TEUR 35-40
Painting work by the owner: TEUR 10
Floor coverings by the owner: TEUR 10
Outdoor facilities by the owner: TEUR 10
Reserve for extras: TEUR 10

All in all estimated TEUR 356

Rhineland greetings