The best financing option?

Hello forum community,

we are planning the construction of a semi-detached house with two residential units. Construction costs without land 520,000 euros. The land is equity (value approx. 165,000 euros). State: Baden-Württemberg Construction start: around April 2014 At least KfW 70. Two promotional loans of 50,000 euros each (KfW or L-Bank). Equity (90,000 euros) is to be used for furnishings and incidental costs. No residential Riester possible.

2,500 euros monthly rate desired. Maximum 3,000 euros. Interest rate security has priority. We want to be debt-free in 20 to 30 years.

Cross-border commuter to Switzerland.

Which financing is best or cheapest for us? Pre-financing/building savings contract? Annuity loan?

Thank you very much for your tips.

Hello

basically very good conditions. What is disturbing here is the cross-border commuter job. Most banks have difficulties with that. I would suggest an annuity loan. Additionally, components from KfW (KfW 70 & [Wohneigentumsprogramm]). Given the interest rate level, you should go for at least 15, preferably 20 years. A building savings contract is not worth it! You lose money during the savings phase! That should be used for special repayments.

Concluding a construction financing now could make sense. Most banks grant 12-18 months of interest-free availability period.

Just ask your house bank & a broker. Asking costs nothing

At least KfW 70. Two promotional loans of 50,000 euros each (KfW or L-Bank).

Cross-border commuter to Switzerland.

What is disturbing here is the cross-border commuter job.

Just ask your house bank & a broker.

The thing with the cross-border commuter is not necessarily disturbing. I am in a similar situation. There are banks that actually do not finance for cross-border commuters (e.g. Ing-Diba). My recommendation here is to contact an "independent" financial advisor. They can, especially if they know the situation from your region, present you suitable offers.

You want to build a house with two residential units? Then, to my knowledge, you can use program 153 "Energy Efficient Building" twice - according to the internet, it is granted for EACH residential unit in new construction/purchase. That means KfW - 2 x 50,000 (program 153) and 1 x 50,000 program 124. Also look at your state bank (or a bank that grants eligible loans in your federal state). Although different requirements must be met here, it is worth a try. In Rhineland-Palatinate, for example, you can get a subsidized loan (in addition to the KfW) through the state-owned ISB bank if you meet certain requirements.

Personally, I would also prefer the annuity loan with a long fixed interest period. Over time, the interest burden decreases and your repayment increases within the same scope. With this, you can repay a large part of your loan during the fixed interest period - provided you work with a reasonable amount for the annuity/repayment. For a desired term of about 25 years, the annuity should be at least 6%. Special repayments, especially in the first few years, have an additional (positive) effect on the term.

A repayment substitute using a building savings contract or life insurance makes sense in my opinion only if the contract already exists (in the case of the building savings contract, the interest rate fits) and the contract would continue independently of the financing (e.g. with a disability insurance existing for years via life insurance). A new conclusion of a repayment substitute only produces costs and has little positive impact (in my opinion).

Hello

that's not entirely correct. The KfW will not participate because it assumes the rental of 2 units. Surely nothing will be shared in the land register....

Hello

that's not quite right. The KfW will not participate because it assumes 2 units are rented out. Surely nothing will be shared in the land register....

Well - I can currently only judge based on the information on the KfW website.
There it says in the overview: "50,000 euros for each residential unit"
If you then hover over the "i," the following additional info appears: "A residential unit is considered a separate apartment (own entrance, cooking facilities, running water and toilet) that is suitable and intended for permanent residential use."

I have not yet been able to find a distinction between external or own use. Of course, I have not researched this in detail due to lack of necessity. Therefore, an expert in this area should possibly be consulted.

However, the 124 Homeownership Program is actually ONLY available for owner-occupied residential space. How this is handled can probably best be explained by an expert here (perhaps a separation in the land register really needs to be made).

@HilfeHilfe you are writing about program 124.

f-pNo has, in my opinion, correctly written:

That is, KfW - 2 x 50,000 (program 153) and 1 x 50,000 program 124.