Is house construction only possible with funding from KfW and the Landesbank?

so one person says it’s absolutely not possible and then you come along and it is.

This is because a forum lives from people who either speak from personal experience, hearsay, reading around, or have acquired knowledge themselves, which may be regionally different, possibly different between banks, or experts here who also work differently and are subject to different rules.

Our net household income is about 4000 euros (+500 euros child benefit).

I’ll say bluntly: that is too little to finance a single-family house with a granny flat.
A single-family house might be possible, because a granny flat isn’t free, you still pay extra despite subsidies. There aren’t tenants like sand by the lake either.

Equity capital: 25,000

A paid-off plot of land is also equity!

We generally ask ourselves whether it would be possible to build solely using subsidies + equity?
KfW 300: €170,000
ISB (Mainz): €175,000
Equity: €25,000

Thus, a total of €575,000 possible.

Now the question is, how does a bank benefit from this calculation? This would all run through KfW loans and practically no own direct bank loan, right? Is the bank obliged to do this? The bank has an interest in granting its own loans and earning interest. I hope you know what I mean. Or is the bank only necessary for transmitting/submitting for KfW?

Last question is whether building a house with €4,000 net + €500 cold rent (assumption 65m2 * €7.75/m2) is even manageable? I always read about at least €5-6k net household income.

Thank you very much.

Hello,

I can tell you firsthand that it is possible. We are also building our house with ISB and KFW300 and equity and nothing from the bank. The bank apparently receives a small share of "commission," even if very little. However, I cannot say how the combination of the KfW loans looks. Our income is similar, we just had much more equity.

May I ask how the financing looked like? How did you search/filter for this at Interhyp or Dr. Klein?

Our financing roughly looks as follows:
Household net income €4,800 plus €500 child benefit (for 28 hours and 39 hours)
Paid off land €19,300
€500,000 financing amount for the conversion and core renovation of a farmhouse from 1857 (we are building a house within a house so it comes close to a new build). Square meters after conversion 170 without attic, 200 with attic.

€15,000 paid invoices (architect, structural engineering, building permit etc.)
€55,000 personal contribution/muscle mortgage
€152,500 KfW 261 at 2.14%
€285,500 NRW.Bank sustainable living at 1.74%

It is also possible to build a house with an income under €5,000 and little equity. However, our actual personal contributions will exceed €55,000, otherwise the budget will actually not be sufficient.

In an appointment with Interhyp, we simply described our desired construct to the advisor, and she then tried to implement it. They know from experience which bank will go along with it and which won’t. Just call, make an appointment and discuss. The consultation is free; Interhyp receives the commission from the bank upon contract conclusion.

Last question: is building a house with a net income of 4000 + 500 euros cold rent (assumption 65m2 * 7.75 €/m2) even feasible? I always read about at least 5-6k net household income.

Thank you very much.

You can't really say that in general. How big is the house supposed to be? Are there already drafts? Why do you need the granny flat (by the way, I don’t see that in the financial framework either)? How much personal effort can you contribute in terms of time and skills? Due to the low interest rates, people have been able to build relatively large houses in recent years. You should not take that as the standard.

Have you calculated what kind of installment you would end up with including all the subsidized loans? Just because the interest rates are low doesn’t mean that the installment fits the budget, since you usually cannot choose the repayment rate with subsidized loans.

Last question is building a house with 4000 net + 500 euros cold rent (assumption 65m2 * 7.75 €/m2) even feasible? I always read about at least 5-6k net household income.

I would not make the question of whether the project is feasible dependent on the funding or combination of funding programs, but rather look at the project as a whole:

[*]Construction costs If you plan a 65 sqm granny flat, at least 135 sqm for own needs should be added, which makes a total of 200 sqm. At a conservatively estimated 3,000 € / sqm, that is already 600,000 € plus incidental building costs, plus outdoor facilities, plus kitchen, inventory etc. [*]Loan Let’s assume that 550,000 € financing would be enough (if we seriously consider the above figure 1, that is at least 100,000 € too little) and we calculate with a mixed interest rate of 2.5% (funding programs range between 0.01% and 3.72%) and a repayment period of 20 years (compare age of thread starter) this means a monthly annuity of 3,145.83 € [*]Feasibility / liquidity The question should answer itself by comparing income of 4,500 € (minus possible rent loss) to expenses of 3,145.83 € without maintenance.

Our financing looks roughly as follows:
Household net income 4,800 plus 500 euros child benefit (with 28 hrs and 39 hrs)
Paid-off land 19,300
500,000 financing amount for the conversion and core renovation of a farmhouse from 1857 (we are building a house within a house, so it is close to a new build). Square meter number after conversion 170 without attic, 200 with attic

15,000 paid invoices (architect, structural engineering, building permit, etc.)
55,000 own contribution/muscle mortgage
152,500 KfW 261 at 2.14 %
285,500 NRW.Bank sustainable living at 1.74 %

You can also build a house with an income under 5,000 and little equity. However, our actual own contribution will exceed the 55,000, otherwise the budget will actually not be sufficient.

In an appointment with Interhyp we simply described our desired construct to the advisor and she then tried to implement it. They know from experience which bank will go along with it and which will not. Just call, make an appointment and discuss. The consultation is free, Interhyp receives the commission from the bank upon contract conclusion.

Thank you for this information.
May I ask what your monthly rate is (40% of net household income?)


A granny flat is planned so that the slope can be used as a basement and granny flat, and the rental income might then make it more affordable.