Financing without equity with security?

Great. You mentioned an offer, is there something in writing? Everything should be included there.

Hello,

KfW change as of 01.04.2016!

I am aware of that. However, the OP explicitly mentioned 50 K€ KfW.

Great. You mentioned an offer, is there anything in writing? Everything should be included there.

Sorry, I haven’t been online the last few days. No, we don’t have anything in writing - the banker just gave us some example calculations after we told him what we need and how we envision the payment terms, and he informed us about what is possible.

The issue with the security on the parental house came - as said - from another source. We expect a follow-up offer in the next few days (without basement and with fewer square meters) and want to arrange another appointment with him afterwards.

There is news regarding our financing project.

With the help of our families, our equity has grown to €80,000; in addition, we are getting the complete electrical work for free (labor and materials). This theoretically brings the "equity" to about €95,000, as we are planning a somewhat more extensive electrical installation.

After now receiving more concrete offers from the builder, we have met with the bank several more times:

The current situation for us is as follows:

He: €2600 net/month without overtime pay/vacation and Christmas bonuses (currently rather €3100, but I am not counting on that)
She: €850 net/month without overtime pay/vacation and Christmas bonuses + €370 child benefit
2 children, 15 and 6 years old

Total financial requirement including buffer approx. <= €330,000
Equity €80,000 (plus approx. €10,000 iron reserves) + sweat equity and complete electrical work
Loan requirement €250,000

Option 1:
- KFW funds €50,000 at 1.15% over 21 years (approx. €210/month)
- Bank loan €125,000 at 1.75% fixed over 15 years (financing gap after 15 years approx. €25,000) (approx. €340/month)
- Bank loan €100,000 at 1.75% fixed over 15 years (financing gap after 15 years approx. €25,000) (approx. €275/month)
- existing building savings contract of €80,000, which should cover the remaining financing at worst at 2.7x%
monthly costs approx. €830

Option 2:
- KFW funds €50,000 at 1.15% over 21 years (approx. €210/month)
- Bank loan €125,000 at 1.75% fixed over 15 years (approx. €475/month)
- Bank loan €100,000 at 1.75% fixed over 25 years (approx. €380/month)
monthly costs approx. €1060

Both options would allow 5% special repayments per year.

These are currently our two favored models. What do you think about them?
Do you have any tips on what could be done better?

Should financial help from the family be understood as a loan, or just as a gift? And who on earth has working hours including materials to give away? Ok, none of my business, but I would be interested in that.

No, no loan and yes, someone has something to give away - even in today's times