Is KfW funding possible despite no current plans for personal use?

Hello everyone,

I would like to buy and renovate the single-family house that our family has been renting for 20 years now. Currently, my brother and my mother still live there, and for this purpose, we want to divide the house into two residential units, with both of them paying me rent, among other things, to cover the planned construction/renovation financing. Now to my question: For tax reasons, I cannot/would not like to move my residence to the single-family house at this point in time (I work in Switzerland, risk of double taxation of my income), but I will definitely live there again at some point in the future. I have often read about explicit KfW funding exclusions when "no own use" applies, but I still do not quite understand it. In the scenario described above, for example, is the KfW funding 261 for energy-efficient renovation of buildings or BEG renovation subsidies, such as the conversion from oil to pellet heating, not possible because I am not officially registered as living in the house?

Kind regards
Leon

In the energy refurbishment (or also new construction), the owner does not matter, because the refurbishment is subsidized and not the creation of your home ownership.

What do you think, how do all the housing companies/cooperatives finance themselves?

Thank you for the response! Unfortunately, I couldn't find anything on this topic on the KfW pages, but to be honest, I'm not an expert and came here with the question. In the forms for KfW funding, under the reasons for "Förderausschlüssen" there is, among other things, the following, which made me uncertain.

Förderausschlüsse
insbesondere
• Entgeltliche und sonstige Vermögensübertragungen, die über den selbstnutzenden Erwerb einer Wohneinheit hinausgehen, zwischen nahestehenden Personen im Sinne von § 138 Absatz 1 Nummer 1 bis 3 Insolvenzordnung

I am not a lawyer, but could "entgeltliche Vermögensübertragung" also include rental payments?
Furthermore, I have so far only read the term "Eigenheim" in connection with KfW funding, especially funding 261, 262, which will be relevant for me. In fact, it would not be my own home but rather an investment property; at the moment, I would only be the landlord.

Thank you for the answer! Unfortunately, I couldn’t find anything on the KfW pages about this topic, but to be honest, I’m not an expert and came here with the question. In the forms for the KfW subsidies, under the reasons for "Förderausschlüssen" among other things, the following is stated, which unsettled me.

Which program are you currently looking for that is making you worry so much? Let me repeat. Energetic renovations of residential properties are supported - regardless of whether owner-occupied or rented; even as a tenant, you can receive the subsidy, although you do not own the property. 261/262 is DEFINITELY independent of that. As I said, this is also how housing companies finance themselves. Reading the program helps (for example, from the KfW information sheet for 261/262):

Which program are you currently searching in that you are having such wild thoughts?
Once again. Residential properties are subsidized energetically - regardless of whether owner-occupied or rented; even as a tenant you receive the subsidy, although you do not own the property.
261/262 is DEFINITELY independent of that. As I said, housing companies also finance themselves in this way.

Reading the program helps (for example, from KfW's leaflet for 261/262):

Thank you, that already eases my mind! I am worried because I absolutely want to avoid rejection of the applications and there are funding programs that explicitly restrict themselves to owner-occupancy. Exactly, in this case it is about the KfW funding 261, from which I also took the quote. Does that mean that a tenant can potentially (with the landlord’s consent) incur debt through KfW 261 to carry out renovation measures in their residential unit?
Best regards
Leon

That means that a tenant can potentially (with the landlord's consent) go into debt through KfW 261 in order to carry out renovation measures in their residential unit?

Exactly. It probably doesn't happen often, but it is indeed possible. A good example is the right of residence, where the "tenant" cannot be evicted.