How to finance the expensive renovation of your house A loan for disability-friendly conversion is granted or increased by various institutions under certain conditions.
In addition to the Good Credit, there are offers from regional banks, private banks, savings banks. Who actually writes and advises here? Who grants credit for remodeling? Who grants subsidies for renovations?
Who grants a loan for a disability-friendly renovation?
Who actually grants a loan for a disability-friendly renovation? The answer is not easy to give: Such a loan is extremely rare as a specialized loan. However, you may use any unused private loan in a corresponding manner. However, this option is only available to you if you meet the requirements for a loan.
This is the case, for example, if you continue to receive regular wages from a fixed and permanent job. Alternatively, you can also propose to guarantor as collateral. If you have not received a loan or it is not enough, there are also some places where you can apply for grants or grants.
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What is the credit for a Good Credit-friendly renovation?
Basically, the Good Credit bank loan for a disability-friendly conversion is the best place to start. There are several reasons for this:
- It is the easiest of all loans to obtain. The financing program for “age-appropriate living” (455-B) is, for example, also explicitly open to pensioners.
- Good Credit promotes conversions in existing properties, but also enables barrier-free construction measures in new properties to be built.
- In addition to a low-interest loan, you can also receive numerous grants for the conversions from Good Credit.
- Applications for the loan and grants can be made directly through upstream banks such as the local savings bank. This saves you bureaucratic effort if, for example, you want to combine the loan for a disability-friendly renovation of Good Credit with another loan from the house bank.
Conditions for Good Credit loan for disability-friendly conversion
There are some conditions for the Good Credit loan. In principle, you have a total of 50,000 dollars available per residential unit. However, this maximum results from the sum of credit and grants. An example should clarify what this means:
Just in case you receive two grants from Good Credit Bank, which together have a volume of 10,000 dollars. Now you can take out a maximum of 40,000 dollars in loans, otherwise you would get over 50,000 dollars. For their part, grants are limited: the maximum for the individual items ranges between 4,000 and 6,500 dollars per subsidized housing unit.
Whether you can receive a grant depends on the offer and your individual case. Since the corresponding Good Credit program is extremely extensive, the explanations here would go beyond the scope. You should get private advice on this. In general, in order to be “eligible” at all, you have to be in a care level (1-5).
Which disability-friendly renovation is funded?
The loan and grants allow you to do the following:
- Paths to buildings
- environment measures
- Barrier-free entrance area or apartment access
- Accessible stairs and individual steps for the disabled
- Threshold reduction in the living space and redesign of the room layout
- Measures for security, orientation, communication as well as modernization suitable for the disabled (e.g. electronic roller shutters)
- For employers only: creation of handicapped accessible common areas
What is the credit for a disability-friendly renovation by the state banks?
The following explanations refer Lower Saxony. The offers of the other Good Finance for a loan for a disability-friendly conversion can differ in detail.
The following people can receive a loan for a disability-friendly renovation from a Landesbank such as Goodbank:
- If the disability requires a structural effort, for example due to an exceptional walking disability (characteristic aG) or due to a high degree of visual impairment
- Alternatively: if there is at least care level 2.
- Alternatively: If there is a degenerative (i.e. continuously worsening) disease, the modifications will eventually become unavoidable – for example multiple sclerosis
How high the maximum loan amount is depends on whether it is an existing property or a purchase or a new building. With a simple conversion, the maximum loan amount is 15,000 dollars. When buying a property to be converted or a new building, the maximum loan amount is at least 50,000 dollars. Depending on the number of children under the age of 15 in the household, it can increase further. From the third child under the age of 15, a further 15,000 dollars are granted per child.
More about credit Good to know: State guarantee as an alternative As an alternative to a direct loan, you can also receive a state guarantee in the corresponding amount.
Loan for a disability-friendly renovation via construction finance
The first question is whether there is sufficient collateral to get the loan back. For example, the above-mentioned state guarantee, a private guarantee from a relative or a secure income would be suitable. The property itself can also be placed against the loan if it is unencumbered.
Second, the big problem is the minimum amount. Many banks have high minimum amounts for construction financing or a renovation loan. For example, you have to raise at least 30,000 dollars – but your work only costs 15,000 dollars. Classic building finance is rarely the best solution because of these two points.