The suitable construction financing???

Hello forum community!

I am new here in the forum and hope to receive some useful tips and information.

My girlfriend and I are currently planning a new build. It is supposed to be a two-story city villa with 132m2 of living space according to Kfw 70 standard. We already have a suitable plot of land with 450m2 in sight for €81,000.

The house will be built by the developer Heinz von Heiden, as we are getting very good conditions there. The construction costs amount to about €162,000 including underfloor heating, gas condensing boiler and solar, fireplace, and controlled residential ventilation with heat recovery.

Unfortunately, I currently have only €30,000 in equity, which does not exactly favor the financing. I have targeted a total sum of €300,000, which I would also prefer not to exceed. Thus, the total loan amounts to €270,000, which should be financed as best as possible.

We are unmarried and have a child together. My monthly net income is €2,600, my girlfriend’s is about €2,000. Including child benefits, we have about €4,750 net income per month.

Now the question arises for me what the best financing option for our project would be or whether it would be more sensible to save equity longer.

Is it advisable to plan KFW 153 and 124 at €50,000 each or rather not?

I am grateful for all suggestions.

It always depends on the conditions. KFW153 will be worthwhile, 142 only if the bank condition is higher than that of the KFW program. And then you still have to deal with the fixed interest rate period with the KFW, or rather like it.

If you buy the property yourself from a municipality or private party, Heinz von Heiden is not a developer. ;)

Get information here about the construction costs, the house will probably become more expensive. You will probably have to increase the budget as well.

The net income is not bad, but will it stay that way (e.g., planning for another child)?

Get information about further funding opportunities, outside of the KfW. In our case, the state development bank reduces the KfW loans again, for example.

Hello

the construction costs also seem very low to me. Even if you "want" to stay under 300k, there is also force majeure where you "must".

Then an additional financing will come into play.

Basically, I would only include the home ownership program if it is interesting in terms of interest rate, but the 10-year fixed interest rate at this interest rate level is not very sensible.

Better to choose 15-20 years and allow special repayments. Kfw 70 program is a must

Hello,

something has already been written about the construction costs. They also seem very low to me.
My recommendation: Spend some money and take the [Bauleistungsbeschreibung] to the [Bauherren-Schutzbund]. They will show you what is included or missing. Usually, the costs are caused more by what is not included (most of the time you don't have that on your radar yourself either).

Regarding [Baunebenkosten] you should take a look here in the forum - there is a nice overview from [Bauexperte].

With equity of 10% the [KFW 124] will certainly become reasonable in terms of conditions - it's just a gut feeling. The lower the equity, the higher the interest surcharge.
Otherwise, as already written here, a longer fixed interest period makes sense (more planning security).
I am not very familiar with [Niedersachsen], so I can't tell you anything about state-specific funding programs. Ask around.

It was already hinted here - are you planning a second child in the future? Then you should consider that the loan has to be paid with your salary alone. If not - then you can calculate both incomes as a basis.

Hello,

first of all, thank you very much for the numerous responses. Regarding the construction costs, you are definitely right. The regular price for the house is between 195-200K. The employee bonus benefits us here.

When I look at the financing offers, the KFW 124 is actually interesting in terms of interest, since the bank-financed 50K would be about 0.3-0.5% higher. I have currently set the main loan of €170,000 with a fixed interest period of 15 years, with a minimum of 2% repayment. As the total monthly rate, including [VWL], I could imagine €1350. Or should this be set somewhat higher?

The muscle mortgage is around €10,000. Would that be realistic?

We are not planning another child. It will probably remain at one.

Regarding the subsidies, I would have to look into that again. What I know is that passive houses are subsidized, which would, however, exceed the budget.