What is an application loan?
A redemption loans includes the word "expenditure", which means in the financial sector as much as "fixed use" and is therefore not provided for free disposal. This is a state subsidy, which is carried out via the Länder or municipalities. Beneficiaries of the Kreditanstalt für Wiederaufbau are mostly families with children or people in need of care who already own or wish to acquire a property. The loan is determined according to the income of a household and is to be repaid in any case. In order not to overstretch the borrower too much, the loan is not repaid promptly in installments as in the case of loans, but at a later period. In this way, applicants are to be financially relieved in the first phase of their conversion or purchase of a property. Another important advantage are the moderate interest rates, which are clearly located under a home bank loan.
Loans for Real Estate Financing
If a family decides to buy a property or build it, it can check whether a claim for a loan is available. This helps with the financing and especially closes some financing gaps. The state takes into account the value of a property. On the one hand, this is dependent on the area, because where there is little living space, a future-oriented living space is created. Solid citizens benefit from a commune and a region when they are permanently settled. Another consideration is the consideration of ecological conditions. Good insulation, for example, is also promoted in existing properties and should be planned for the new building. This reduces energy costs.
The expenditures loan also serves the generation house. Living several generations under one roof, it is self-evident that the property is designed to be barrier-free. After all, all generations will at best reach the age of seniors and depend on barrier-free access. These measures relate to lifts in a multi-party house, access ramps for the house and living area, constructions for the wet cells such as the bathroom and the kitchen.
The conversion to renewable energies is also worthwhile. Anyone who still heats up with the old coal kiln in his home is given the opportunity to secure his energy through a pellet stove. The acquisition of photovoltaic plants is also promoted. The aim is to deal with climate change through lower emissions.
Where the application loan is to be applied for
The application loan is usually applied directly to the real estate financing of the real estate finan- cial administrator. In Hamburg, for example, the investment and support bank (IFB) is responsible for this funding. In NRW, on the other hand, NRW Bank is responsible for social housing promotion. In Munich, information is available directly from the municipality. All real estate brokers and consultants from this department also serve as contact partners.
The repayment modalities are particularly important for applicants. These vary depending on the funding and the conditions of the region. The basis is defined by the legislature, but the countries remain entitled to adapt certain requirements to the regional conditions. The repayment period begins on average from the fifth year of the grant. The application loan is not issued in one fell swoop, but can extend over the 16 years, as in the example of Hamburg. In the first 20 years of repayment, the interest rate is low. Anyone who needs longer repayment due to high loans must expect an increase in interest rates.