Is single earner construction financing possible? Is equity available?

Hi guys,

we are a family of 4 from Frankfurt am Main and have been looking for a suitable property for quite some time, but unfortunately have not found the right one yet. Currently, we live in a 3-room apartment (warm rent €1100).

I am currently the sole earner with a monthly net income of €3100 (excluding child benefit), my wife is no longer employed after parental leave. My children are 2 and 4 years old.

We have about €350,000 in equity available (€300,000 comes from the proceeds of the sale of my parents' house). Furthermore, there is a portfolio with currently about €40,000 which is not to be touched as retirement provision.

We want to contribute a maximum of €300,000 as equity into the financing, €10,000 should be used as emergency funds or €40,000 for furnishing.

Since we are searching in the Frankfurt area and surroundings, the prices (between €600,000 and €800,000) are correspondingly high. So far, I have not had any talks with banks.

How realistic do you think our plan is? Is construction financing possible at all as a sole earner? No ongoing loans or overdrafts on the checking account.

Regards

Mattias

Is a construction loan even possible as a sole earner?

With a 3x00 salary rather unlikely. Your salary is eaten up by living expenses. It is better if the woman works again. Even with high equity, you should exceed 4000. My opinion!

How are you managing with the salary now? Good... 1100€ warm rent is quite a chunk! With your net income, you also get about 2x 200€ child benefits... I still wouldn’t see more than 1000€ installment.. That would be 30% of the net income (with about 400€ child benefits)

€1100 all-inclusive rent is quite a chunk!

All-inclusive? That’s not really a “chunk”...

you always calculate net x 100 = max loan, right?
For you that would be 350,000 € max loan amount...
+ 300,000 € equity = 650,000 €
It will probably be very tight :/

Warm? It's not a "Batzen"...

Mine Regarding the net salary of 4 P