Is financing possible with equity? Is own contribution required?

The most important thing for me at the moment is whether the creditworthiness is sufficient for 5 people (2 adults + 3 children) to be able to obtain a construction loan of €220,000.

I will take care of everything else intensively after the land purchase.

Please respond whether it is enough for a construction loan.

Best regards

Hello,

The most important thing for me right now is whether the creditworthiness is sufficient for 5 people (2 adults + 2 children) to be able to get a construction loan of €220,000.

Public funds were specifically created for the lower income groups; therefore, based on experience, I would like to say "yes." Nevertheless, you should consult an independent mortgage broker regarding this matter. Unlike the answers here on the internet – which are not directly transferable – he is liable for advisory errors ;)

My calculation is: land costs: €50,000 (fully developed) house costs: €140,000 interior work done by myself (approx. €10,000 savings potential) earthworks: approx. €30,000 total: €220,000

I assume there is a reason why you budget €30,000 for earthworks – what your list lacks are the typical incidental construction costs of around €35,000. You should not leave these unconsidered; accordingly, the financing should come to €255,000.

Kind regards

Hello,


Public funds were specifically created for the lower income groups; insofar, I would like to say "yes" from experience. Nevertheless, you should consult an independent financing broker on this topic. Unlike the answers here on the internet – which are also not transferable 1:1 – he is liable for advisory errors ;)


I assume there is a reason why you are budgeting EUR 30,000 for earthworks – what I miss in your listing are the typical ancillary construction costs amounting to EUR 35,000. You should definitely not leave these out; accordingly, the financing should be planned for EUR 255,000.

Best regards

Hello Bauexperte,

sometimes I express myself incorrectly or confuse the terms with each other, sorry again. Of course I do not mean earthworks but ancillary construction costs.

So if the framework conditions for public funds are met, then the loan from the bank should not be a problem?

Thanks anyway for taking the trouble, even though I always confuse the technical terms.

Your payslip is extremely optimistic. You can definitely expect between 2100 and a maximum of 2500 net. Because your wife's job on a 400€ basis is not secure, it can also be lost. And you shouldn't count child benefit in the construction budget either. Child benefit has its reason and should be spent on children. (My very personal opinion) There are costs for school/school trips, clothing, sports, and so on... but I don't need to tell you that, you know yourself.
What you should additionally consider now is that a house incurs higher additional costs than an apartment. I would estimate about 300€ per month. And depending on the residential area, there is always the "risk" as a property owner of being charged by the municipality when the sewer is redone or the street needs to be renovated. That can cost a lot of money, and I no longer see the potential for you to build reserves to cover such costs. I think you should always keep such things in mind in advance.
I don't want to discourage you from the project, just encourage you to think about it carefully again.
When it comes to interior work, you also have to remember that materials and tools take a lot of time, and possibly the time you need to do it yourself (meaning you each have to pay 700€ rent during that time).