How to successfully apply for a new construction loan in Hessen?

Hello,

has anyone here in the forum already successfully applied for the Hessen loan? I don't quite understand the conditions, especially regarding the equity. Maybe someone here has experience with the application process and can tell me something about it?

I applied for and received this in 2020 for the [Bestandserwerb]. I can say that the effort is quite high. And the processors are also quite demanding. But the terms and conditions are, of course, exceptional. What are your questions?

I applied for and received this in 2020 for the acquisition of the existing property. I can say that the effort is quite high. And the processors are also quite demanding. But the conditions are of course top class. What are your questions.

I would like to know whether the employees at the city/municipality were rather helpful/motivated or not? How long did it take until you received the decision from the WI-Bank after you had submitted all the required applications to the city/municipality?

You pay back 3% p.a. of the loan, the fixed interest period is 20 years, the term is, I believe, 32 years? Is there the possibility to increase the repayments percentage-wise over time, to make lump sum payments or to repay the loan in full after the fixed interest period of 20 years?

Thank you very much

So for us, it took about 1.5 months from the first contact with the municipality until the application was sent. Our caseworker was very motivated and we had several phone calls (nothing in person thanks to Corona). It took a while because of the proof required for my wife. She was on parental leave, but it was over at the time of the payment. It was about calculating the income, which actually refers to the previous year. Then the second hurdle was the bank that finances the rest. Both banks wanted confirmation from the other bank before making a proper offer or accepting the application. But that was also resolved after some emails and a lot of waiting time. The [hessendarlehen] doesn’t seem to be very well known. I even had to explain it to my financial advisor :rolleyes: I should have done it completely without him. He was absolutely no help for the loan. The application was processed after 3 weeks, and then there were some questions from the [Wibank]. Unfortunately, the caseworker there was not very friendly. Since I read the documents very carefully and some points were not clear to me, I asked questions quite often. She didn’t seem to like that very much. In the end (6 weeks after receiving the application, the approval came) it worked out. Based on your question about repayment, I can only recommend that you read all the documents very carefully again. You can repay as much as you want at any time and completely without a prepayment penalty. I don’t know if you can do that through the installment, but an extra payment works fine too. Generally, it makes more sense interest-wise to feed the other loan with the extra payments. I would just stick with the 20 years for now.

Thank you for the information, I actually did not find anything about the repayment on the homepage.

But your experience matches my feeling, some things are unclear or vaguely formulated and questions remain unanswered.

The hotline of the WI-Bank seems to be of little help, cannot provide any information and refers to the employees of the city/municipality.

You said that after the application was received or forwarded to the WI-Bank, some things were still unclear and the bank had additional questions?

I was told that the city/municipality carries out the complete preliminary check and only submits the documents to the WI-Bank when they are complete. So I assumed that the WI-Bank just has to give the okay and everything is done, but that does not seem to be the case.

Exactly, they check that again as well. I had to respond to some points and provide something else. I think I was still exactly 5 days into the probation period and had to submit an employer's certificate confirming I was being taken on... as if I still wanted the loan after a termination :rolleyes: With my wife, they miscalculated her hours and wages, and I had to point that out to them again. So, minor stuff. I think 6 or 7 points.