KfW home ownership program
The KfW home ownership program of the Kreditanstalt für Wiederaufbau supports the acquisition or construction of owner-occupied condominiums and homes in Germany ( residential property ) as well as the acquisition of cooperative shares through low-interest loans . Only natural persons are funded.
terms and conditions
Both products provide for a maximum funding amount of 50,000 euros. (currently for KFW 124 even up to 100,000 euros. As of January 11, 2020)
The following costs are taken into account during construction :
- the cost of the building plot,
- the construction costs including ancillary construction costs and
- the cost of the outside layers.
If an owner-occupied property to buy , be
- The buying price,
- Additional costs as well
- Any repair, renovation and modernization costs incurred are funded.
In both cases, the scope of the investment must be such that the resulting burdens for the borrower , such as management costs and capital services, are covered by the income.
With the KfW home ownership program, the interest is fixed for a period of 5 or 10 years. After the expiry, KfW will submit an offer for follow-up financing (not applicable for full repayment loans). Payments are made quarterly on the basis of monthly annuities . Special repayments are only planned for the total amount. A prepayment penalty is due.
With product number 124 (for home ownership), the loan must be secured in full by a mortgage . For product number 134 (cooperative shares), the safeguards are agreed with the intermediary financial institution.
The KfW loan can be combined with other public funding without restrictions, as long as the amount of the funding commitments does not exceed the eligible expenses.
The application is made through a credit broker or a bank, which usually also arranges the main loan. The application must be submitted before the start of the project, at the latest immediately after the notarial purchase agreement has been concluded. When purchasing a building plot, the KfW home ownership program can be applied for six months after acquisition.
Debt rescheduling and refinancing for completed projects are excluded.
Loan terms and interest terms
The minimum term is four years.
The following credit periods apply to product number 124 :
- up to 20 years term with 1 to 3 grace-free years
- up to 35 years with 1 to 5 grace-free years
- up to 10 years term with full repayment at the end of the term
The following credit periods apply to product number 134 :
- up to 20 years term with 1 to 3 grace-free years
- up to 10 years term with full repayment at the end of the term
Information on the currently valid interest conditions can be found on the KfW website.
Funding for the elimination of flood damage
The repair of the damage caused by the floods in May / June 2013 will be funded with up to 50,000 euros with a KfW action plan. Funding only relates to damage to the residential building including the outdoor facilities. This does not apply to the purchase of new furnishings.
See also
Web links
- Leaflet KfW Home Ownership Program (PDF; 63 kB)
Individual evidence
- ↑ Interest rates for KfW's 124 + 134 programs , accessed on August 6, 2018