How to make sensible use of NRW state subsidy programs for your property purchase

The state government provides special support for families with children or households with severely disabled people to realize their dream of owning their own four walls: As part of housing subsidies, the state government has increased the family bonus by 3,000 euros to 23,000 euros per child or severely disabled person. When purchasing owner-occupied residential property, families receive a total subsidy consisting of a regionally-dependent basic loan and the family bonus. The federal government's home ownership subsidy is aimed at families in the lower and middle income range. These families in particular are often unable to build up any significant assets. The current basic loans for the promotion of owner-occupied residential property are between 96,000 euros and 177,000 euros for income group A and between 57,000 euros and 106,000 euros for income group B, depending on the location of the property. In addition to the family bonus, an additional loan of 11,500 euros can be granted for barrier-free properties. An additional loan of 30,000 euros can be granted for construction projects in the BEG standard "Efficiency House 40". If the subsidized property is built in timber construction, an additional loan of up to 17,000 euros can be granted.

In addition, the state government supports the principle of "young buys old - young families buy existing properties". This is particularly interesting for many rural regions. The subsidy rates for the purchase of existing properties are the same as those for new builds. For more information on the funding options and eligibility requirements, please contact your local approval authorities.

Examples of funding:

Income group A:

A family with two children and an annual household income in income group A benefits from home ownership funding in several ways: When buying a property in areas in cost level 4 (e.g. in metropolitan areas such as Dortmund), a family with two children and an annual household income in income group A benefits from home ownership funding in several ways.For example, when buying a property in cost level 4 areas (e.g. in conurbations such as Dortmund or Bielefeld) with total costs of 300,000 euros, the family receives a subsidized loan of 223,000 euros (basic loan 177,000 euros and family bonus 46,000 euros for both children) at attractive conditions. A personal contribution of 22,500 euros (usually 7.5 percent of the total costs) is required. The family receives a repayment discount (partial debt relief) of ten percent on the subsidized loan, i.e. 22,300 euros, which does not have to be repaid. Other additional loans are also possible, for example for building with wood, the amount of which depends on the amount of wood used (maximum 17,000 euros), for barrier-free properties (11,500 euros) or construction projects to the BEG "Efficiency House 40" standard (30.000 euros).

Income group B:

If the family exceeds the relevant income limit by up to 40 percent (income group B), a promotional loan of 152,000 euros (basic loan 106,000 euros and 46,000 euros for both children) can be granted. In this example, the repayment discount would amount to 15,200 euros.

Source and further information: https://www.mhkbd.nrw/foerderprogramme/wohnraumfoerderung-fuer-privateigentum