Financing your property
You can afford that much house or apartment
Financing options for home builders
What are the options?
Basically, you can choose between home financing with equity, taking out a mortgage and financing without equity. Most take one Mortgage loan in claim. Normally, a builder should be able to raise 20 percent of the money needed to build a house himself. Some banks also allow so-called full financing. This means that the bank advances the entire purchase price. This type of home financing is already common in the US and UK. To get a loan, builders have to prove their creditworthiness, i.e. their solvency. As a rule, the bank requires:
- A fixed minimum income through permanent employment, a pension or rental income
- A positive Schufa scoring that statistically shows that you will pay off the loan on time
- Own work and equity of 20 percent of the house price
Owning securities or savings accounts increases creditworthiness. Positive features of the house such as B. Location in urban areas, young age and good condition also improve the chances of getting a loan. In addition to the loan, builders can apply for various support funds. Sources for funding for building projects are, for example, Wohn-Riester, BAFA funding or the KfW home ownership program. An overview of the funding opportunities can be found here, for example. In addition to the construction loan, another option is to take out a mortgage Mortgage lending.
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House building despite negative Schufa entry?
With a negative entry at the Schufa, it is very difficult to get a loan from the bank. If you still want to build a house, you can consider a mortgage. While loans require sufficient creditworthiness for the payment of the due installments, a specific land charge is selected for the mortgage. This means that the bank is registered as a co-owner of the property and the house and can sell the same if the payments can no longer be made. A mortgage always means that you are not the sole owner until the house has been paid off in full.
The advantages of the mortgage are that you can get money for building a house even with an irregular income. Anyone who has a negative Schufa entry also has the option of taking out a mortgage abroad. Due to low interest rates and milder credit checks, many house builders have opted for financing from a Swiss bank in recent years. On the MoneyPark.ch website, you can use a mortgage calculator to check the conditions and scope of a mortgage in Switzerland. However, when lending money from abroad, the currency risk must always be weighed up. In order to protect yourself as much as possible, you should therefore choose a mortgage model with a fixed rate.
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