Why is financing so difficult?

Enough has already been said... Based on the current situation, I can only advise against it to you as well.

No one says anything against 0% financing, but it should be kept within limits. Taking a loan for a vacation and financing a car after a divorce—I would ask myself as a bank whether one could have simply scaled back. A 4900 income is decent and sufficient for this plan, but not under these conditions! After deducting alimony, daycare, and credit, you have €3143 for 2 adults and 3 children—you then want to spend €1500 monthly just for the installment. I consider that unrealistic.

Vacation on credit??? How do you come up with that? The car is the only thing that is really questionable as a loan, even though the remaining amount is not really high anymore. The other 2 loans are ridiculous and could actually be fully paid off. Just like the car. We will do that too. It’s not 0% financing anymore either. We have about 15% equity. A divorce (almost 4 years ago and will soon have no effects anymore [see car loan]) should not be a deal breaker now. That didn’t matter to any bank so far. They also didn’t care that we are not married. We have about €3000 for 2 adults and 1 child. The other two are with their mother and only the oldest still comes to us every other weekend.

Where does the equity come from now? 15% must be a good 60,000 EUR + additional construction costs (easily 30,000 EUR). Plus the kitchen and all things that are not considered now... 100,000 EUR? At the beginning, 18,000 EUR was mentioned???

Financial injection from the parents. See post 9. The kitchen is already included. I even calculated the garbage cans. I have also calculated 100 individual sockets (but since we also take double and triple ones, it will be cheaper). I have calculated 5 spades. For every amount that is still somewhat unclear in size, I added a bit extra. Everyone already laughs at me because I keep my list so exaggeratedly detailed. In other words, we already know quite precisely what is coming our way and have calculated quite generously for many items. A buffer is of course still included, plus an amount that we will not use but set aside.

First of all, hello in the house building forum,

Dear Evolith, without wanting to be intrusive to you and your family, I consider the realization of your wish at the current time to be unfeasible.

That does not mean it will be like this in the future!

In your place, I would first wait until the above-mentioned extra items are resolved. Afterwards, I would determine what can be saved monthly. I can warmly recommend keeping a household budget book.

Then I would request financing offers again.

My tip: wait about 3 more years; interest rates will not increase that much. You know the saving potential you have and your equity is somewhat higher.

Let's summarize:

You want to build now.

Costs: €123,000 land
€280,000 house
€50,000 ancillary costs... have I seen these already in your calculation?
Total: approx. €450,000

Even with €60,000 equity, that would still be nearly €400,000 in loans!

With a €1,000 installment, which is unrealistic anyway, you would pay for more than 33 years alone, and that doesn't even include interest!

At 2% interest on €400,000, that's €8,000 in interest per year alone...

At current interest rates, with an installment of €1,200, you would be finished in 38 years!

I hope you realize yourselves that this is probably not feasible, sorry.

Regards MCN

First pay off your debts and save a little. Trying to have a home of your own at all costs now will only bring you problems. Once the debts are gone and you have more equity, the situation will look very different. A home of your own is not everything.