How to finance land with only a 30 thousand loan

Hello everyone,

we have the case that we want to buy a plot of land from the city. However, it is not clear how we should implement this. The plot costs 90 thousand plus additional costs. We can raise 60 thousand and the additional costs. Only the remaining 30 thousand should be financed. Our house bank does not want to offer us a variable financing under 50 thousand and in general, you cannot find a bank that will do this.

This results in 2 possibilities: 1. Finance 50 thousand variable at a bank and then repay when we have the financing for the house construction. 2. Get an installment loan with a 2-year term and repay as soon as the financing for the house construction is secured.

I see an advantage in option 1 that we have enough time to decide on a general contractor. The disadvantage is the mortgage of a bank and the resulting notary costs for the house financing with another bank.

In option 2 I see the advantage of no mortgage. Can take my time with the general contractor. Disadvantages are Schufa entry (possibly the score will drop?). Repaying the loan after 6 months, for example, could cost us something. Amount unknown.

There is also the possibility to finance everything with the house bank, but we are under full pressure to find a general contractor quickly and pay for the plot. The city sets the deadline, but it is not yet known.

What do you think?

Or finance 50k€ variably and after 6 months make a special repayment with the existing 30k€ or pay off the remaining loan with the savings 6 months later and go into the house financing relaxed with the entire property as equity. That's how we did it.

Make 50k variable

Both options are possible. Consumer loans can usually also be repaid free of charge. And by the way, the construction financing also goes into the [Schufa].

Both options are possible. Consumer loans can usually also be repaid without fees. And by the way, the construction financing also goes into the Schufa.

Thank you very much for the answers. I prefer option 2. This way I do not have a land charge on the property. I am only worried about the installment loan. Won't this be viewed negatively in my creditworthiness or won't my terms get worse? After all, the bank does not know whether I used the money to buy the property or, for example, a car. And then it will not be paid off. Or are my concerns unfounded?

There are also consumer loans that can be repaid at any time as far as I know.