KfW home-ownership loans: programmes 124 and 300 explained

Programme 124: the general loan

According to the KfW page, programme 124 finances the purchase or construction of an owner-occupied house or flat, up to €100,000 per project. What it covers:

• New build: the plot, if bought at most six months before the application reached the KfW; building costs; ancillary building costs such as notary and agent fees, the Grunderwerbsteuer (real estate transfer tax) and fees for energy advice and architects; and outdoor works.
• Purchase: the price, repair, conversion and modernisation costs, and ancillary costs such as notary and agent fees and the transfer tax.

What it does not cover: holiday homes, refinancing of existing loans, additional financing of projects already begun or finished, rented or commercial areas, and works on an already owner-occupied home such as extensions.

The terms the page shows:

The page shows no interest rate in the text retrieved, only placeholders; ask the finance partner for the current rate and effective annual rate.

Programme 300: families, climate-friendly homes

Programme 300 finances the new build and the first purchase (Erstkauf) of an owner-occupied, climate-friendly residential building or flat in Germany. Two funding levels exist:

1. Klimafreundliches Wohngebäude: an Efficiency House 40 level, meeting the greenhouse-gas requirement of the “Qualitätssiegel Nachhaltiges Gebäude Plus”, and not heated with oil, gas or biomass.
2. The same with the QNG sustainability certificate (QNG-PLUS or QNG-PREMIUM).

Eligibility, from the page:

• You live in the property as owner (at least a 50% co-ownership share).
• At least one child under 18 lives in your household.
• The property is your only residential property in Germany.
• Household income is at most €90,000 a year with one child, plus €10,000 for each further child.

The page adds that the amount depends on your situation on the day you apply. A child who turns 18 on that day still counts; a child born after the application does not.

Maximum loan by level and children (household income ceiling in brackets):

Terms: up to 35 years, fixing up to 10 years, 100% payout, drawn within 12 months and extendable by up to 24 months, commitment fee 0.15% per month from the 13th month. Programme 300 is not available to anyone who has already received the Baukindergeld grant (programme 424), who already owns a residential building or a share in one in Germany, or for buying a plot, refinancing, finishing a project already begun, or holiday homes.

Timing

For programme 300 the KfW page says to speak to a finance partner before signing supply or service contracts or the purchase contract, and to bring the “confirmation for the application” prepared by the energy-efficiency expert, the income-tax assessments for the second and third year before the application, and the birth certificates of children under 18 living in the household. For a first purchase of a new efficiency house, the KfW recommends a clause in the purchase contract making the seller liable for the stated efficiency level. For the buying sequence as a whole see the guide on buying a home step by step.

Early repayment

For both programmes the KfW says the whole outstanding amount may be repaid early at any time, with a Vorfälligkeitsentschädigung (early-repayment compensation) due, and that partial repayments and special repayments are not possible. This differs from the general rule of section 500(2) of the Civil Code, which speaks of repayment “in whole or in part”; see the guide on early repayment.

Who can apply: a gap in the sources

The KfW pages speak of “private individuals” (Privatpersonen) who will live in the home. They do not state a residence or nationality condition in the text read. Whether a non-resident or a recent arrival qualifies is therefore a question for the finance partner and the KfW’s application preparation, not something this guide can answer. See also the guide on mortgages for non-residents.

State programmes

Several states and their promotional banks run their own schemes. This guide covers only the federal KfW loans. For the confirmed example of a state subsidy, see the guide on the Hessengeld in Hesse.

Which professional to consult

An energy-efficiency expert is required for programme 300, to confirm the efficiency level; the KfW describes the role on its page. A mortgage broker can act as finance partner or advise on combining the loan with a bank loan (see the mortgage-broker page). Test the numbers with the mortgage calculator.