ᐅ Building a House Without Personal Equity: How to Approach It?

Created on: 11 Jun 2015 02:08
D
dream
Good morning,
I hope you won’t be too hard on me. I’m new here and hope this is the right place. I keep coming back to this topic, but no one seems to be able to share good or bad experiences from real cases.
Is it possible to buy or have a house built without any personal capital?
And if yes, how do you proceed? Where can I find companies that build a house according to my wishes?

And if no, what is the best way to save money? A building savings contract? With which companies, or what other options are there?

What is rent-to-own?

I hope to get some answers here; otherwise, thank you in advance.
T
toxicmolotof
14 Jun 2015 23:34
You can do a lot as long as the bank is convinced that they will get their money back.

Either you have alternative collateral, a very good income, or a correspondingly high repayment rate. Or a combination of all three.
B
Bieber0815
15 Jun 2015 21:56
Goldi09111 schrieb:
Is it possible to include these additional costs in the financing?

It is possible (some people even finance phones or refrigerators), but the number of lenders who offer this is quite small. Getting 100% financing is generally only available with excellent credit, meaning an initial repayment rate of at least 3% per year. Depending on the state or region and circumstances, you might need more than "110%" financing, which usually covers only the hard additional costs—not fees, furniture, etc. In the end, you may be looking to finance up to 120%. Calculate what that means for you and whether you can afford the monthly payments (currently, expect an annuity payment of about 6% of the loan amount). Note: it’s not you who decides if you can afford the payments; the bank has the final say based on their own assessment.
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Payday
17 Jun 2015 16:29
not to forget that 100% or 120% financing also leads to significantly higher interest rates. if you then commit to a long fixed interest period, you basically don’t benefit from the low interest rate anymore over