Owner-occupied housing; application for funding

Purpose

The purpose of the subsidy is to help people seeking housing to become homeowners by building or purchasing a house or condominium for their own residential purposes (= owner-occupation, Art. 3 (1) sentence 4 of the Bavarian Housing Subsidy Act, BayWoFG).

Object

The state promotes the creation or acquisition of owner-occupied housing as part of the Bavarian Housing Construction Program.

Beneficiaries

Households that are not only temporarily resident in the federal territory and are legally and actually able to establish a long-term residence for their household as the center of their living relationships and to run an independent household.

Funding for the purchase of owner-occupied housing is excluded if the seller and buyer are related in a direct line.

Eligible costs

For the construction of housing, the total costs within the meaning of §§ 5 to 8 of the Ordinance on Housing Calculations under the Second Housing Act (Second Calculation Ordinance - II. BV) (= land, construction and ancillary construction costs) are eligible.

In the case of the purchase of housing, the purchase price and the purchase costs are eligible; in the case of a second purchase (= used housing), the costs of necessary modernization and repair measures are also eligible.

Type and amount

The subsidy is provided in the form of a low-interest building loan (0.5 percent interest) for a period of 15 years.

• Only households whose income does not exceed the income limits specified in Art. 11 Para. 1 BayWoFG can benefit from the subsidy.
• Funding is provided in the form of a loan and a one-off grant for households with children. The loan may not exceed 30 percent of the eligible costs for construction and first-time purchases and 40 percent for second-time purchases. For the second purchase, a grant of 10 percent of the total costs up to a maximum amount of 50,000 euros is also granted.
• The construction project may not be started before the grant has been approved.

There is no legal entitlement to funding.

The procedure is a two-stage process:

1. The application must be submitted to the district administrative authority (district office, independent city) using the forms and documents provided for this purpose. Approval is granted by the district administrative authority.
2. The loan commitment and notification of approval is made by the Bayerische Landesbodenkreditanstalt.

Payment is made according to the progress of construction and must be applied for at the district administrative authority.

The district administration offices or independent cities are responsible for providing advice.

none

• Proof of the property or heritable building right
• Proof of debt and equity capital
• Proof of household income
• Other evidence (e.g. in the case of construction management)
• Technical documentation for the construction project

The application and approval process is free of charge.