Financing without equity - Repayment / Interest

This is a rather complicated situation for financing. We were also involved, but only with a condominium that we had sold for the house purchase, after we had first sold it just 3 years prior.

The problematic part is the exchange of collateral and the related land charge for the bank. If VFE were to become due, you will have no sensible alternative but to work out an offer and model with the current bank and accept it. Everything else usually leads to major losses.

And a Schufa score of 98% is not good. But I’m repeating that here for the tenth time now.

In the context of a mortgage, it’s probably negligible as long as we stay below 80% LTV. Beyond that, it does get interesting, but probably not impossible.

Really? Is that so? I thought there were only 3 and 98 ;) What does it take to get 100? No mobile contracts? No overdraft? 1 million in the savings account? I consider Schufa to be probably the most messed-up organization ever. The ugly sister of the GEZ :)

If we were to tackle this, it would be next year. And in the meantime, put the house on the market. I would take the prepayment penalty into account when selling. We would have the notary note that moving in is only possible at a certain date, etc. It was the same for us back then. We could only move into the house 3 months later.

I would first have been interested in how high the interest rate might possibly be and the possible repayment rate plus interest.

If we would only tackle this next year. And in the meantime put the house up for sale. I would take the prepayment penalty into account when selling. We would have the notary note that you can only move in at a certain date, etc. It was the same for us back then. We could only move into the house 3 months later.

The only problem is that you won’t be living in the new house in 3 months. Basically, you can only start with the planning etc. after the house is sold. I think it will take at least 1 year... rather 1.5-2 years, so you’ll need a bridging solution. But that will scare off every buyer. I would seriously consider moving into a cheap rental apartment in the meantime. I know people who did exactly that. They lived for 1 year in a block of flats with an H4 quota of 80% :) That was quite bizarre. But purely economically I found it very reasonable.

I would have first been interested in how high the interest rate might be and the possible repayment rate plus interest..

Any construction financing calculator on the internet will roughly tell you that. You will only get the exact amount once the bank has the loan-to-value ratio etc. from you.

As I said.. currently you actually can’t do anything except sell. There are way too many unknowns to make any serious considerations.