Purchase without equity, L-Bank "Living with Child" + KFW funding ok?

Hello everyone

we are currently looking for an existing property. In doing so, we came across the following funding program from the L-Bank: Living with a Child. The L-Bank employee says that the whole thing must be applied for through the house bank and it can be combined with a KFW loan (renovation). Apparently, it can be used for the purchase price as well as for the payment of the additional costs.

What I just don’t understand or can’t find a clear answer to is whether it can also be done completely without equity? When I informed myself a while ago, most banks offered a maximum of 95% financing.

But how is the promotional loan added here?

I have no idea what is stated in the L-Bank conditions. You have to read them yourself. If equity is a requirement there, then that's just how it is.

With KfW, that is not the case. And every "regular" bank decides for itself what risk it wants to take. If the property and creditworthiness are good enough, then everything can be financed.

However, you still need to define 95%. 95% of the total costs? 95% of the market value? 95% of the lending value? But assume that only someone with appropriate creditworthiness receives full financing. Especially nowadays. In the private customer sector, we usually expect 15-20% equity on the total costs. In commercial real estate financing, it can sometimes even be 50% (office, logistics, residential complex).

What does your creditworthiness look like? Nowadays, for a house construction costing 0.5-0.75 million, I would expect a net income of at least 8-10,000€ as well as a significant asset background. Then you can talk about financing without equity.

P.S. The [Förderdarlehen] is a [DARLEHEN]. That's already in the word. It is nowhere equity.

I have no idea what is in the L-Bank conditions. You have to read them yourself. If equity is a requirement there, then so be it.

No, the loan requires other conditions, such as not earning more than 200,000 EUR per year and having a minor child living in the household. The funding is called "Living with a Child"

However, you now need to define 95%. 95% of the total costs? 95% of the market value? 95% of the lending value?

As I understood it, that referred to the total costs. Back then we were with Ing-Diba

What does your creditworthiness look like? Nowadays, for a house construction of 0.5-0.75 million, I would expect a net income of at least 8-10,000€ as well as a significant asset background. Then you can talk about financing without equity.

We definitely do not have 8,000 net. My question was whether the loan counts as equity. What is confusing is that the website says:

"You can finance:
1.Purchase of a house or condominium

[*]Purchase price including incidental costs (notary and broker fees, real estate transfer tax)
[*]Modernization, repair and renovation inside and outside"

Because the KfW Bank goes into the second rank, it may be that the loan-to-value ratio improves and the interest rate is therefore offered at a better rate. This is then considered by some "like equity." Similar to [Eigenleistung]. Presumably, that's what you mean?

My question was whether the loan counts as equity. The only confusing thing is that the website says:

"This is what you can finance: 1.Purchase of a house or condominium

[*]Purchase price including incidental costs (notary and broker fees, real estate transfer tax) [*]Modernization, repair and renovation inside and outside"

I don't understand the connection between equity and what is stated on the website. What do you mean by that?

Equity is cash. Cash money. Credit balance. Liquid assets. A loan cannot replace equity. If a bank says, "but we need equity," then the above mentioned has to be used and not an additional loan.

I do not understand the connection between equity and what is stated on the website. What do you mean by that? Equity is cash. Cash money. Credit balance. Liquid assets. A loan cannot replace equity. If a bank says, "but we need equity," then the above-mentioned must be used and not an additional loan.

There is a loan at n-Bank Lower Saxony for young families who want to buy their own home at good conditions, but with practically unattainable requirements. It says that this loan is secured by a state guarantee and can thereby count as equity... Presumably, something like that is meant?