KFW 300 problem, obtaining a house with residential rights on short notice

Hello everyone,

we are starting construction on the 25th. My wife was suddenly registered as the owner of her parents' house in a surprising action, with her parents retaining the right of residence. Unfortunately, coordination with the parents-in-law is very difficult; my wife didn't even know what the notary appointment was about until it happened. Formally, we now have a house, but we cannot use it because the parents will easily stay another 20 years, and this means the KFW (KfW) funding is formally void and leaves us with a financing gap.

Since the right of residence contract neither allows for a loan secured by the property nor for an encumbrance, we have a problem.

What to do? According to KFW, it is sufficient if you do not own property on the day of the application. Sell the house back for one day? The promotional loan would save us about 400 EUR burden per month. We now have to somehow manage that extra.

What do the KFW people among you say?

Best regards from the region

What do the KFW people among you say?

Stupid to sign a contract at the notary. You have to get rid of the house now, otherwise, there will be no funding. You can't do more than that.

But it's a curable mistake: transfer back, take the subsidy, and do it all again. Of course, it's expensive for you, good for the notary. But definitely still much better financially than not getting the subsidy. Why does a house transfer with conditions happen without consultation, which then is carried out completely without any time for consideration? This is not a doorstep deal!

Stupid to sign a contract at the notary. You have to get rid of the house now, otherwise there will be no funding. You can’t do more than that

Without your post, I didn’t understand the whole meaning of the original post. So it’s about the future construction from 2025 onwards. Aha.