Promotion of owner-occupied residential property and communal living – New construction (Hessen Loan New Construction)
Low-interest loan for the first-time construction or purchase of owner-occupied residential property or communal housing projects in Hesse. Up to 50% of total costs, maximum EUR 200,000. Application before construction start or purchase contract conclusion.
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Grant criteria
Funding objective
The state of Hesse supports private individuals in the initial construction or purchase of an owner-occupied single-family or two-family house or condominium, as well as communal housing projects, when adequate housing is not available and financial assistance is required.
Eligible expenses
- Construction costs
- Land costs
- Incidental costs
- Own contribution
Eligible to apply
- Individuals
Funding requirements
- Total household income below the specified income limits according to § 7 HWoFG
- First-time purchase or construction of owner-occupied residential property
- Equity capital of at least 10% of total costs
- No exceeding 50% equity in total costs
- Subsidized dwelling to be used for the designated purpose for the duration of the fixed interest period
Documents required for application
- Application form Hessen loan new construction
- Proof of income
- Proof of equity
- Notarized purchase contract or construction documents
- Land register sheet (in case of hereditary building right)
Description
The Hessen Loan for New Construction supports private individuals in Hesse in the initial purchase or construction of owner-occupied residential properties as well as in communal housing projects. The goal is to create adequate and affordable living space when no alternative accommodation is available and financial assistance is required. The loan amount is up to 50% of the eligible total costs, with a maximum of €200,000 (plus a €20,000 bonus for the Efficiency House 40 standard). The program covers construction costs, land costs, incidental costs, and personal contributions and offers a nominal interest rate of 0.60% p.a. with a 20-year fixed interest period. Due to the subordinate mortgage registration, more favorable conditions are often possible for the remaining financing needs. Special repayments are possible at any time without prepayment penalties; a repayment deferral in the first year is provided, and the total term is approximately 32 years.
Households with or without children as well as legally constituted communal housing projects whose assessable total income is below the income limits according to § 7 HWoFG are eligible for funding. Requirements include at least 10% equity, a personal contribution quota, a maximum of 50% own assets relative to total costs, and a minimum financing burden of €400 per month. The funding application must be submitted to the responsible municipal housing promotion office before the start of construction or the conclusion of the notarized purchase contract, which, after positive review, forwards the documents to WIBank. Required documents include, among others, proof of income, proof of equity, and the Hessen Loan New Construction application form. Through continuous allocation, the program offers reliable support on the path to owner-occupied homeownership in Hesse.