Maximum construction financing based on income

Well, it depends entirely on the bank. 25k can be made quickly. Painting + flooring through a company already costs around 20k. If outdoor facilities are added, you're easily at 40k. In our circle of friends, it has gone through without any problems with all banks. However, that is then the annual vacation or a lot of overtime. You shouldn't forget that. Material cost is not included, by the way. So only the labor costs count. At 50/60€ per hour for a craftsman, you are involved in at least 400-500 hours on the construction site. Basically, nowadays you can finance almost anything. Your amount will go through as well. I'm pretty sure of that. Whether you enjoy it or not, you have to decide yourself. Ours is also not the healthiest combination, but what was offered to us at the beginning... if I hadn't dealt with the subject anymore, I would only be working for the house. Your rate is roughly 1300€ + additional costs + reserves. That easily makes 1800€ wasted on the house. Then some decorations here. There, new kitchen utensils and outside the garden also wants a few little things. The money runs out super fast. Large investments like a new driveway, small walls, new terrace, pool, or even a garden house mean months of saving. Now you can add up what your household costs per month and then you know what's left for leisure, etc. Some need 2k per month for that and others prefer to just hang out in their garden.

Well, it really depends on the bank. 25k can be done fairly quickly. Painting + flooring through a company already costs around 20k. If landscaping is added, you're easily looking at 40k. It went through seamlessly for everyone in our circle of friends at all banks. However, that is basically the annual vacation or a lot of overtime. One must not forget that. Materials are not included, by the way. So it's only the labor costs. At 50/60€ per hour for a craftsman, you’re on site at least 400-500 hours. Basically, nowadays you can finance almost anything. Your amount will go through too. I’m pretty sure about that. Whether you enjoy it or not is up to you. Ours is also not the healthiest combination, but what was offered to us at the beginning... if I hadn’t dealt with the subject further, I would only be working for the house. Your rate is roughly 1300€ + utilities + reserves. That easily adds up to 1800€ going out for the house. Then there’s some decoration here. Some new kitchen utensils there and outside the garden also needs a few little things. The money runs out really fast. Large investments like a new driveway, small walls, new terrace, pool, or even a garden shed mean saving for months. Now you can add together what your household costs per month and then you’ll know what’s left for leisure etc. Some need 2k a month for that, and others prefer to just hang out in their garden.

No money left over for decoration. Not even a few plants.

Because you want to finance 440k with 3,500 net at 3(?) I also wonder what you mean by 25k muscle mortgage. A bit of painting and gardening? You have to prove that to the bank

Muskelhypothek is the colloquial term for the owner's own work in connection with the construction or purchase of a property, which can consist of material and labor services, especially the value of building materials supplied and self-help. These expenses reduce construction costs and thus increase the equity ratio. This in turn increases the likelihood of a positive decision on loans and subsidies. For the average homeowner, however, usual rates are between 5% and a maximum of 15%. This is usually the upper limit that banks recognize for work without corresponding professional qualifications. In addition, many credit institutions limit the value of self-performed work to 30,000 euros.

Muscle mortgage is the colloquial term for owner contributions in connection with the construction or purchase of a property, which can consist of material and labor services, especially from the value of brought-in building materials and self-help.

These expenses reduce construction costs and thus increase the equity ratio. This in turn increases the likelihood of a positive decision on loans and subsidies.

For the average homeowner, however, rates between 5% and a maximum of 15% are common. This is usually the upper limit that banks recognize for work without corresponding professional qualifications. In addition, many credit institutions limit the value of owner contributions to 30,000 euros.

You don't have to explain a muscle mortgage to me. I'm a builder myself. And I must unfortunately tell you that fitting in was never the right advice.

If you find a bank that offers reasonable interest rates, everything sounds feasible. Then you just limit yourself a bit for 2-3 years until both are working again. Here in the forum, you always hear that any slightly risky financing already seals personal insolvency.

Well

How did you calculate that? Why should I be missing 1000 € net? >> 4500€ * 110 = 495,000 loan amount.... I don't need 495k

Do you always make decisions like that?
If a rule of thumb says okay, then it’s okay for you too?

Whether a bank cooperates you will see when you talk to the banks. The more important question is whether the financial burden is okay for you. Neither the bank nor a great formula will tell you that.

I wouldn’t take on such a loan with the mentioned income.