House construction - How to finance???

Hello everyone,

we would like to build a house, but the question we are now asking ourselves is, how do we best finance the whole thing now.:confused:

A few key data points.

Costs after deducting equity approx. 250,000€

Landesmittel Bank NRW 87,000€
Remaining 163,000€

Schwäbisch Hall Wohn-Riester: 1 child 2007 2 children 2010
KFW: But it should not be a passive house.
House bank approx. 3.5%

Thank you very much in advance for your answers

Regards and thanks
Uwe

Wohnriester per person 40,000 So total 80,000 Possibly KWF 70??!?!? 50,000€ at 3.2% Then you would still be missing 33,000. Possibly at the bank?

163,000 euros are to be financed from state funds.

What KfW standard does the house meet? If KfW70 or better, you can use the KfW program Energy-Efficient Building (50,000 euros); additionally, the KfW Home Ownership program (up to 30% of total costs) can be applied. The KfW loans can be discounted through some banks with an interest rate of up to 0.30% p.a.

If Wohnriester is to be used, why not directly as a Wohnriesterdarlehen? With the building savings contract solution, you have two disadvantages compared to the loan variant: 1. You pay a closing fee 2. You receive a low interest on the savings contributions. With a direct Wohnriesterdarlehen, the "return" for your eligible Riester repayment corresponds to the loan interest rate.

You should also clarify the following points:

How long should the fixed interest rate period be? If you are a security-oriented person, a long-term fixed interest rate is advisable at the current interest rate level. The reason is that you reduce your interest rate risk as no one can tell you how high interest rates will be, for example, in 10 years. If interest rates are higher than today, your monthly burden for follow-up financing will noticeably increase.

How much flexibility do you want in repaying the loan? Should special repayments be possible? To what extent? Should the rate be adjustable?

When financing, make sure it is precisely adapted to your living conditions and your property. Because the financing will accompany you for the next 25, 30, or more years. Therefore, the financing must be tailored exactly to you so that it does not become a burden.