Anyone building now should not forget the funding from the federal states

Particularly when it comes to financing, building or buying a home to live in has become an expensive pleasure over the past year and a half. Sooner or later, the financing intermediary involved will therefore come across various promotional loans, the use of which can significantly reduce the loan costs and significantly improve flexibility in repayment.

Unbeatable interest rates

The first thing you look at is usually KfW’s offers. This is particularly true when financing new construction projects. The program “launched at the beginning of June”Home ownership for family“The interest rates are now unbeatable. The annual interest rate for loan terms between 25 and 35 years is just 0.66 percent (ten-year fixed interest rate). For terms of eleven to 25 years it is 0.33 percent and even just 0.01 percent below.

At the same time, the very restrictive conditions for accessing credit were relaxed somewhat in mid-October. Although the number of eligible families has increased as a result, the program is still not available to all buyers of owner-occupied residential property.

This could be because, for example, their income is “too high” or they are looking at an existing property. In this case, the loan programs of various federal states can provide relief, some of which can also be used in addition to KfW funding.

Direct subsidies for the purchase of owner-occupied residential property

Particularly noteworthy here is the Free State of Bavaria, which is part of the Promotion of home ownership still provides direct subsidies for real estate financing. After individual assessment, eligible applicants can receive a subsidy in addition to the loan support amounting to ten percent of the eligible costs up to a maximum of 50,000 euros. For families, an additional 7,500 euros per child is added. Under certain conditions, direct subsidies for the formation of owner-occupied home ownership are only available for families Bremen (up to 15,000 euros).

State loans also apply when purchasing existing properties

Other federal states focus essentially on loan subsidies. These include, for example, “Hesse loan“, the “Z15 loan” from Baden-Württemberg (already exhausted for 2023) or the “IB funding loan“Saxony-Anhalt. Although the conditions are not quite as attractive as with KfW funding, with rates of less than two percent, and in some cases even less than one percent, there is still a very high level of relief compared to the market level of over four percent. While the KfW loan is limited to financing energy-efficient new buildings, the state loans mentioned can also be used to purchase existing properties, the purchase prices of which have in some cases significantly reduced in the past twelve months.

Larger circle of beneficiaries

With the reduced-interest “IFB Home LoanIn the Hanseatic City of Hamburg, on the other hand, only the construction or first purchase of owner-occupied homes and condominiums can be partially financed. However, the household income limits for possible use are significantly higher than with the KfW program. In addition, people without children can also benefit from the two percent interest rate for up to 150,000 euros.

As these few examples show, there is a lot of financing support to be had from the federal states. However, it is also clear that without sound advice and extensive support when submitting an application, there is often little that can be done. One option for potential buyers is therefore to contact a qualified financing agent as early as possible.