Homeownership; Applying for a Grant

Purpose

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

Subject Matter

Under the Bavarian Interest Subsidy Program for the Promotion of Homeownership, the state provides funding for the construction or purchase of owner-occupied housing.

Grant Recipients

Recipients of grants are private individuals.

Eligible Costs

When constructing housing, the total costs as defined in Sections 5 through 8 of the Ordinance on Housing Calculations under the Second Housing Construction Act (Second Calculation Ordinance—II. BV) (= land, construction, and ancillary construction costs) are eligible for funding.

When purchasing housing, the purchase price and acquisition costs are eligible; in the case of a resale (i.e., used housing), the costs of necessary modernization and repair measures are also eligible.

Type and Amount

The funding is provided as a grant. The funding is provided as a loan.

The type of funding is project-based.

Under the interest subsidy program, funding is provided in the form of a low-interest loan covering up to one-third of the total costs. In addition, a child allowance of 5,000 euros per child may be granted in conjunction with the loan. 

• Only households whose income does not exceed the income limits specified in Article 11(1) of the Bavarian Housing Promotion Act (BayWoFG) are eligible for this subsidy.
• The subsidy consists of an interest rate reduction of up to one-third of the total costs and a child allowance of 5,000 euros per child in conjunction with the loan. 
• Construction on the project may not begin before the subsidy is approved.
• There is no legal entitlement to this subsidy.

Exclusion criteria:

Subsidies for owner-occupied housing may only be granted to applicants who are not merely temporarily residing in Germany and who are legally and factually capable of establishing a long-term residence for their household as the center of their lives, while maintaining an independent household.

Subsidies for the purchase of owner-occupied housing are excluded if the seller and buyer are directly related.

The process consists of two steps:

1. The application must be submitted to the Bavarian State Land Credit Institution using the forms and documents provided for this purpose. Approval is granted by the district administrative authority.
2. The loan commitment and the issuance of the approval notice are handled by the Bavarian State Land Credit Institution. Disbursement is made based on construction progress and must be requested from the district administrative authority. The district offices or independent cities are responsible for providing guidance.

There are no set deadlines for this grant.

• Required document(s)
  
  • Application for the Bavarian Interest Subsidy Program to Promote Homeownership: Stabau Ia
  • Applicant’s Income Statement: Stabau III a
  • Income Statement for Other Household Members: Stabau III b

There are no costs involved.

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