Housing Promotion – Creation of Owner-Occupied Housing and Acquisition of Cooperative Shares

The low-interest housing subsidy in Rhineland-Palatinate supports private individuals in the construction or purchase of owner-occupied residential property as well as in the acquisition of cooperative shares. Eligible for funding are individuals, married couples, registered civil partnerships, and single parents with household incomes up to a maximum of 160% of the income limit according to § 13 para. 2 LWoFG. The ISB loans "Homeownership" and "Acquisition of Cooperative Shares" allow loan financing of up to 30% for basic loans and 5% each for supplementary loans from the total costs. Depending on the subsidy rent level, up to €190,000 can be applied for homeownership and up to €50,000 for cooperative shares. The loan must be applied for before construction begins or at the latest two months after the purchase contract is concluded. Equity of at least 10% of the total costs or subscribed shares must be demonstrated. Further funding requirements include the submission of a current land register excerpt, a membership certificate from the cooperative, as well as SEPA direct debit mandates from all applicants.

The repayment grant can amount to up to 10% of the loan amount and increases by an additional 2.5% upon achieving the Efficiency House Standard 55. A state guarantee can be applied for both funding focuses. The designated use requires that the homeownership or cooperative apartment is self-occupied and located in Rhineland-Palatinate. Projects without compliance with deadlines, already commenced construction projects, and acquisitions from direct-line relatives are excluded from loan conclusion. For application submission, complete application forms, the site plan, income and asset proofs, as well as the cooperative’s confirmation of the usage fee are required. The responsible city or district administration is the contact point for the funding confirmation prior to the completion of loan processing by the ISB. Fixed interest rates of up to 30 years provide additional planning security for long-term financing.