Use Riester and family support in a targeted manner

Child benefit no (not taxable), parental allowance n.a. Actually not directly taxable, but due to the progression clause it is added to the taxable income for determining the tax rate. Therefore, it must definitely be considered in the household calculation (gross -> net). However, I suspect that it probably does not count towards the subsidy.

Edit: + What the others say!

Regardless of whether the €80,000 gross is undershot or not, the question remains whether this funding program is of any use to you at all. It is merely a funding program that provides loans with lower interest rates to virtually simulate equity. But these loans also have to be serviced. Moreover, I couldn't quickly find how high these loans are capped at and at what reduced interest rate. Assuming a loan of €150K that you might get through the KfW at perhaps 2% below market interest rates, there are still €450K missing at market interest rates and both have to be paid off. So I don't know if that can work if you haven't saved anything so far and also have to support 2 more children.

Edit: I just read something on Haufe about an amount between €140K-240K, which is more than I expected, but there is nothing about the interest rate. That is definitely a crucial factor that is still missing. Also, this only applies to Effizienzhaus40, which might actually make the endeavor a bit more expensive. So, to me, it rather looks like this is intended in the main to fund the new construction of condominiums. Because people in the income bracket up to €60K gross can hardly afford a single-family house, especially considering the required energy standards. Also, very few people have as much net income from gross as the OP does. With condominiums, the situation looks somewhat different...

No, that is incorrect. Neither the child benefit nor the parental allowance increase the taxable income. In the case of the progression clause, only the higher tax rate is applied to the taxable income.

Correct, thank you.

That is why my question was to what extent Wohnriester can be used sensibly to combine the different subsidy options without equity, since Wohnriester offers a high allowance. I secured zuhausedirekt15 2019.

In the Wohnriester from 2019 you have probably paid in €2,100 for 3 years, or how much is in there?
The zuhausedirekt15 has a minimum building savings sum of €50,000. Assuming you also have €50,000, you need at least 40% of the minimum building savings balance (according to LBS), so €20,000, on the contract. Do you have that or not?

But honestly, with €50,000 that is completely negligible, no financing is based on that. Do you have a higher building savings sum? If so: How high is it and how much is on the contract?

Don’t let everything be dragged out of you...

I have a surplus of €1700 from April onwards besides the rent, minus all fixed costs and shopping expenses. (With one child) So far, I have used the money for the loan installments of my expensive car. As I said, my only concern is to use various financing instruments to build a house without equity. We can get the plot for €100-140k. My Wohnriester has €70k. I have only paid €500 into the Wohnriester. But I have read that it is still sensible to use the Riester if you include it in the financing.

In your case: probably not at all.
No offense, but you have lived well, saved nothing, planned nothing.

Consider buying a [ETW], that may be possible for you without equity.

I can't quite understand your answer. The home ownership subsidy is exactly made for families like mine who have no equity. Starting in April, I will have a surplus of €1700, and after the birth of our twins, there will be an additional €1000 salary increase + €500 in child benefits. If I add our cold rent of €800, I have a decent monthly income to realize financing without equity, don’t I? If you add the Wohnriester allowances of €1250 (per child €300 + €175 + €175 for my partner and me), you could use €4075 per year for a special repayment on the construction loan by paying in €250 per month (that would be 4% of my gross income to get the maximum allowance). Additionally, you get half of the contributions back from taxes as special expenses, which would be another €1500 for the next year. Am I approaching the financing wrong? Please explain to me why this financing cannot work like this. As mentioned, I would rather not use the help of our parents-in-law.