The state is supporting your new family home with a new program

Homes should be affordable for everyone. Therefore, starting June 1, 2023, the government aims to support families in achieving homeownership. Our overview explains what the new Program 300, administered through the KfW development bank, promises.

The government intends to allocate no less than €350 million to the new KfW program 300 "Home Ownership for Families" (WEF). The amount of funding varies depending on the number of children.

What requirements must be met?

Families with children can get a lower interest rate loan (up to a maximum of €240,000) if:

• the applicant is a private individual
• a climate-friendly residential building is being built
• a climate-friendly residential building is purchased
  (the building inspection must have taken place no more than 12 months ago)
• the property is occupied by the owner
• first time residential property is acquired
• when a child is under 18 years old
• if the KfW subsidy program 424 (child benefit for home construction) was not used
• if the annual income is a maximum of 60,000 euros (family with one child)

If several children live in the household, the maximum annual income per child increases by 10,000 euros.

Which properties are eligible for subsidies?

To be eligible for funding, the house must meet certain requirements. Either the property complies with the standards of an Efficiency House 40 and is worthy of the "Sustainable Building Quality Seal," or it receives an additional sustainability certificate. Applicants can obtain this document from an accredited certification body.

Which funding programs can be combined with the KfW program 300?

The WEF program can only be combined with one other subsidy. This is the KfW Home Ownership Program (124) , which allows for a maximum loan of €100,000. However, families must pay attention to the total amount of funding received. The total amount must not exceed the eligible costs.

When should you apply for funding?

While families are purchasing a property that meets the criteria, they can simultaneously apply for the new subsidy. This is possible even if no supply or service contract has yet been signed. As always, exceptions prove the rule. Families can also wait until construction begins. In this case, a consultation must take place before the contract is signed. This consultation must be documented.

Do you have further questions about the new homeownership subsidy or are you interested in purchasing a property? Then contact us. We will guide you from the application process to the handover of the property.

Notes

For the sake of readability, this text uses the generic masculine form. Female and other gender identities are explicitly included where relevant to the statement.

Legal notice: This article does not constitute tax or legal advice for any specific case. Please consult a lawyer and/or tax advisor to clarify the facts of your individual situation.

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