Funding for an old building renovation, please support

I wish everyone involved here in the forum a nice weekend.

As some of you may still remember me from last time, the purchase of a detached plot of land near Groß-Gerau did not work out.

Now I have another interesting offer, but it is an existing property. The plot is just under 600 sqm, so surely something can be done with it. The plot is really nicely shaped, and the house is not carelessly placed like in most cases, meaning somewhere in the middle, far left, far right, or diagonally.

A viewing has already taken place and we will probably take it.

For this, we have of course done some preliminary work regarding Baukindergeld, etc., but we still don’t fully understand the KfW programs and hope for support from those of you who are more familiar with the topic.

My questions are:

1. Baukindergeld is also available for people acquiring an existing property, without any disadvantages or deductions, is that correct?

Meaning €1200 per child/year for 10 years.
Income limit per household maximum €75,000 gross plus €15,000 per child.

2. Regarding the KfW funding programs:

We now have a financing request only for the purchase of the house. Should one already apply for the KfW at the time of the house purchase since they also partly subsidize the property transfer tax, broker fees, etc.? Or should/can this be applied for afterwards/during the renovation of the old building (windows, insulation, etc.)?

Since there are several KfW variants, after research I found the following to be suitable for me:

124 KfW Home Ownership Program
151 for renovation of energy measures
167 for heating (old building has oil heating), possibly to liquid gas or heat pump
270 renewable energies
275 renewable energy storage

Those would be loans, what exactly is the difference with grants?

430
433 possibly.

Thank you very much for reading.

Best regards

1. nothing has been decided here yet 2. it depends on whether a KfW makes sense and what requirements need to be met. Do you have an overview of what needs to be done and what it costs? Not every bank supports every KfW loan. But you always need a corresponding bank. Additional costs must always be paid from equity. Everything else blows up the interest. For renovation, banks usually require 50% equity and not in the form of own work.

Hello HilfeHilfe,

of course we can cover the additional costs ourselves. Currently, with all purchase-related costs, it is €400,000, minus €75,000 due to equity.

What needs to be done are the wooden windows from 1990. Completely. Otherwise, the facade and small repairs have been renovated in the last 3 years. A new oil condensing central heating system will also be installed.

The bank we would like to finance with would be Ing-Diba or Commerzbank. However, we had the offer calculated by Interhyp. Due to KFW, would it be advisable to go directly to the bank, or is it better to continue having it examined by Interhyp?

Hello HilfeHilfe,

of course we can cover the additional costs ourselves. Currently, with all ancillary purchase costs, 400,000€, from which 75,000€ are deducted due to equity.

What needs to be done are the wooden windows from 1990. Completely. Otherwise, the facade and minor things have been renovated in the last 3 years. A new oil condensing central heating system will also be installed.

The bank we would like to finance with would be Ing-Diba or Commerzbank. But we had the offer calculated by Interhyp. Would it be advisable, because of KFW, to go directly to the bank, or rather have Interhyp continue to review?

Interhyp is an intermediary. So they know the market best and know who offers which KfW loans. I can’t even estimate what the windows might cost and which KfW funds might be suitable. The classic is the home ownership program, but you have to look closely to see if the interest rate is attractive compared to the main loan.

Interhyp is an intermediary. So they know the market best and know who offers which KfW loans. I really can't estimate what the windows might cost and which KfW funds are applicable. The classic one is the home ownership program, but you have to take a close look whether the interest rate is attractive compared to the main loan.

Okay great, then I will bring this up with the advisor. Interest rates in our last offer were at 1.22% fixed for 10 years. However, KfW should still be somewhat lower.

Do you really want to commit to only 10 years with such a volume? I would have them offer 15 or even 20 years ... then there will be peace of mind