Off to home – Funding options mortgage lending
The interest in A Super Simple Loan Done In Minutes is at a historic low. Good conditions for builders or home buyers to complete the financing of the property. But why use only a classic loan? Access additional funding options for building finance – with a state subsidy for home purchase or construction.
What funding options are available for mortgage lending?
For the purchase or construction of a house, you can fall back on different support programs. The best known are:
- Municipal subsidies
- KfW assistance
Municipal funding opportunities for mortgage lending
Numerous municipalities support the acquisition of residential property. This happens, for example, in the form of:
- Favorable conditions for a construction loan
- Offers for the purchase of favorable building land
- Special grants
Already in advance for you for information: Funded primarily families with children. A prerequisite for this, however, is that at least one underage child will still live in the planned household. Often, a certain annual income level must not be exceeded in order for a subsidy to be used.
The funding options available to you, in this case, depending on the local community in which you want to buy or build a house. Often the financial situation of the community plays a crucial role in this context. Here it makes sense to ask the respective city administration directly, which funding options are available in which amount.
The Kreditanstalt für Wiederaufbau (KfW) funds with amounts of up to 50,000 euros. The respective height is based on the energy standard of your new building.
The convenient conclusion to top conditions – request a quote now
KfW Promotion – What exactly is that?
In addition to mortgage lending via a bank, you have the option of receiving government funding. There are various programs under KfW funding. These include:
- KfW loans of up to 50,000 euros for the construction or purchase of a house or condominium, which you use for your own use.
- KfW subsidies for building new buildings in accordance with the Energy Saving Ordinance (EnEv 2016) or energy-related refurbishment and modernization measures. This means that you receive a subsidy if you build or rebuild energy-efficiently.
- Promotion of the purchase of photovoltaic systems and the expansion of existing plants.
- Promoting an age-appropriate conversion to provide accessibility and promoting the acquisition of already barrier-free homes.
As far as the form of the promotion is concerned, you receive low-interest loans for all variants, which have to be repayment-free in the first year.
The big advantage is that you can take out a KfW loan in addition to the mortgage lending at your bank. Accordingly, you apply for the KfW loan from the bank, where you apply for your mortgage lending. Both the settlement of the loan, as well as the disbursement of the loan amount and the monthly repayments are made through the bank chosen by you. You can therefore easily discuss the terms of the KfW promotional program directly with your respective bank adviser. This gives you a contact person during your financing phase, who takes care of everything for you.
Important with regard to the application: You must apply for KfW funding together with the mortgage lending, even before you start the construction project.
Who can use funding opportunities for building finance from KfW?
Depending on which KfW funding program is involved, the following are eligible for funding:
- Housing companies
- Institutions of public law
- Non-profit organizations
It does not matter if it is the cozy condominium, you want to finance the construction of a house for yourself and your family, or you need financial support to refurbish an already existing property – there are many funding opportunities for mortgage lending. It’s best to make an appointment with your mortgage specialist at 1822direkt, who can give you all the details and advise you individually on your situation. More information can be found here.