ᐅ KfW40, Funding Program 300 "Low-Income Households"

Hello,

this thread is for those readers who, like us, often feel a bit lost here.

We are about to sign a contract for building a house to KfW 40 standard with a local general contractor. Financing through KfW and ISB.

A brief introduction about us

• Who are you? H. and M.
• How old are you? 33 and 30
• Any children? One boy, turning one next week
• Are more children planned? None due to the house build
• What do you do for work? H: CNC machinist, M: administrative clerk
• Are you employed, self-employed, retired, homemaker, etc.? Employed
• How many hours do you work? H: 40 plus a part-time job twice a week for 2 hours each, M: 16 hours (part-time on parental leave)

Income and assets situation:

• What income do you have (gross/net)? H: 3258/2312 plus part-time job about 250 €; M: 1282/1048
• How much child benefit do you receive? 250 €
• Other benefits like parental allowance, sick pay, etc.?
• How much equity do you have? 130,000
• How much of that equity do you plan to invest in the house project? 100,000

Expenses:

• Current cold rent (rent excluding utilities) 450 €
• Current warm rent (rent including utilities) 550 €
• Electricity 75 €
• Phone, internet, mobile 80 €

Mobility costs: for 2 cars total

• Insurance 96 €
• Taxes 26 €
• Fuel 210 €

Insurance costs:

• Liability insurance 6.60 €
• Capital or term life insurance 13 €
• Pension insurance (including Riester, Rürup, etc.) 100 €
• Disability insurance 126 €
• Accident insurance 45 €
• Household contents insurance 4 €
• Union fees 33 €

Living expenses:

• Groceries 500 €
• Eating out 0
• Personal care/drugstore 40 €
• Clothing 20 €
• Cleaning 5 €

Summary of income and expenses:

• Total income 3860
• Total expenses 1899.6
• Balance 1961
• of which cold rent 450

General information about the property:

• How large is the plot? 663 sqm (7135 sq ft)
• Dimensions? 24 x 27.5 m (79 x 90 ft)
• Land value? 65 € per sqm (approximately 6 per sq ft)
• New build, existing house (year built), type of house? New build, detached house, gable roof, KfW 40, 1.5 storeys
• Garages? Single garage
• Size of the house? (Living area / usable area) Living area 129 sqm (1390 sq ft), usable area 143 sqm (1540 sq ft) plus 32 sqm (344 sq ft) garage
• Market value of land and house after completion? 503,000 €

Construction or purchase costs:

• Land costs 43,095 €
• Additional acquisition costs (notary, court, property transfer tax, agent) 2400 €
• Construction or purchase costs (including architect, structural engineer) 386,000 €
• Construction ancillary costs (e.g., utility connections, soil expert, construction power, etc.) 5,000 €
• Outdoor facilities/terrace, paths, garden design, fences, etc. 10,000 €
• Total costs 446,495 €

Other costs:

• Kitchen costs 15,000 €
• Photovoltaic system 12,000 € (6 kW with 6 kW battery storage)
• Energy consultant 5,325 €
• Garage in owner’s construction 17,500 €
• Front door 4,500 €

Cost summary:

• Total costs 500,820 €
• Deductible equity 145,495 €
• Financing amount 355,525 €

Necessary loan details:

• Loan amount 170,000 € KfW, 175,000 € ISB LM
• Loan type (e.g., annuity loan, bullet loan, etc.) annuity loan
• Interest rate (p.a. nominal, otherwise effective) 0.53 % KfW, 3.4 % ISB
• Fixed interest period 10 years KfW, until full repayment ISB
• Estimated total term until full repayment September 30, 2052
• Initial repayment rate KfW 2.77 %, ISB 1.8 %
• Monthly payment KfW 469.03 €, ISB 758.33 €, total: 1,226.06 €
• Are prepayments allowed? (Please state amount) ISB 10% per year

Let the show begin. Looking forward to your feedback. I thought it might be interesting since some questions of this kind have come up recently.