New construction financing - Is the financing model realistic?

Hello everyone,

I wanted to ask how you assess our situation regarding financing.

About our situation:

We are both 37 years old, have 1 child (3 years old), and our net incomes including my regular secondary job (at least €500 monthly) total €6,200. I work in the public sector and will earn €500 more net in the next 3 years through step and group promotions. My wife works 25 hours part-time. Our variable household costs for food etc. are about €1,800 per month. We calculate additional costs for the house at about €550.

Unfortunately, for financing, there is only equity for the incidental costs (8.5% of the purchase price). The rest we would use as a safety buffer and for furnishing the apartment.

Equity about €100,000. There is still the possibility to take up 10% as security via a mortgage on the parental home to get a better interest rate so that we reach a loan-to-value ratio of 90%.

There are three different properties to choose from in the new construction projects. The semi-detached house would be top for us in terms of equipment and space. The price is of course quite high. But unfortunately, you can’t get a new semi-detached house here for less than €570,000.

About the properties:

Terrace middle house KFW 55 for €470,000
Terrace end house KFW 55 for €540,000
Semi-detached house KFW 40 Plus for €625,000.

Additionally, my parents offer to contribute €200-300 monthly towards the installment as long as they live. Furthermore, they already want to transfer their house to me, and if they move into an apartment later, I could sell the house (at least €250,000) and use that to pay off the mortgage additionally.

As a financing model, I am thinking of a combination of KFW loan 153 and bank loan with a fixed interest period of 15 years, initial repayment of 3% with special repayment option. When I calculate it for the semi-detached house, I actually come to the conclusion that it works. I still have enough per year for vacation, reserves and without much restriction. But the loan amount is rather daunting at first...

Thanks a lot in advance for your answers.

But the loan amount is initially intimidating...

... but there is an asset position of the same amount in the form of the house. So the balance is 0

As a financing model, I am considering a combination of KFW loan 153 and a bank loan with a fixed interest period of 15 years, initial repayment of 3% with an option for special repayments.

So a rate around 2,200 to 2,400€, mathematically comfortable.
BUT: 4,000 € for daily living is really tight

Apart from the fact that I would do without the parents' handouts given the family income, everything also looks very healthy with the semi-detached house. Do it!

8.5% additional costs without broker (since new construction) is a lot. With that salary and age, the equity is relatively low. 10% or 100% mortgage on the parents' house means the same in a crisis. The house will be auctioned. I would use the equity completely.

8.5% additional costs without realtor (since it is a new build) is a lot. With that salary and age, the equity is relatively low. 10% or 100% mortgage on the parents' house means the same in a crisis. The house will be auctioned. I would use the equity completely.

8.5% is the standard in SH, for example. 6.5% GES and 2% notary+land registry. On the other point, I agree with you.

Hello, give up the alms from the parents. Taking another 300 € with that income... well

Otherwise, you have hardly any buffer. How high are the additional incomes? Are they verifiable? I could imagine that there might be problems with the request