Real estate financing despite personal loan, but with equity?

Hello everyone,

I have a question regarding real estate financing. Maybe someone has experience with a similar situation or is familiar with it. Here are some details: I am married, have two children, am currently the sole earner, have a secure and well-paid job, and have had a personal loan running for only a year (almost €40,000). I would like to build/buy, but I have no equity in the form of savings or similar. I know from the district office that I would receive housing construction subsidies. Additionally, my father is an engineer and would take care of the entire planning, construction drawings, structural analysis, etc. free of charge. If I am not mistaken, the subsidy and the engineering services count as equity, right?

How would the personal loan be handled? Could it somehow be included or redeemed within the real estate financing (e.g., as a land charge or similar)? What are the chances of obtaining real estate financing with such a personal loan as a "burden," despite the equity?

I would be glad if someone has had similar experiences and would share them with me, or if someone is familiar with this and could give me tips.

Thank you in advance!

Depends;)
What kind of funding are you getting? Loan or grant? A loan is of course not equity!
Including your personal loan in the financing probably won't work, it is likely too high for that.
It will all depend on your creditworthiness, with a net monthly income of €6k rather better than just €2k.
Finally, the question of all questions: Why do you think you'll get financing (and can afford it) when so far you have only accumulated debt and no assets? You need to be able to answer this question well for the bank (and of course for yourself).

There is nothing more to add....

With the given parameters, I don't believe you will receive housing subsidies from the state.

Either your income (even as a sole earner) is too high or the regular burden from the home loan, general purpose loan, and estimated flat rates for maintenance and living expenses is too high.

Believe me, I know what I'm talking about. My salary fit quite well within the subsidy framework at 80%, but with a small remaining loan with a burden of 250 euros and a remaining balance of 5000 euros, it was calculated so tightly that there was no room left for approval.

The planning services must be included in the construction costs, but are deducted as equity capital. That is correct. Nevertheless, 50% of the required equity (15%) must be available as cash (or as land). For a total construction sum (including ancillary construction costs) of 300,000 euros, 45,000 euros equity must therefore be available, of which 22,500 euros must be cash or land. The remaining 22,500 can be contributed through planning and personal services.

Where does someone with a well-paid job get housing subsidies?

Where does someone with a well-paid job get housing subsidies?

usually you need to have 2 to 4 children .......... :rolleyes: we didn't have that, now we do