Bavarian Interest Rate Reduction Program for the Promotion of Owner-Occupied Housing Open
The Bavarian Interest Rate Reduction Program offers households with low to average incomes in Bavaria the opportunity to receive interest-subsidized loans for the construction or purchase of owner-occupied housing. This program is a central support for home ownership in the Free State and is characterized by the provision of long-term, low-interest loans that can be adapted to individual needs.
Who is funded?
The Bavarian Interest Rate Reduction Program for the Promotion of Owner-Occupied Housing targets private households in Bavaria with low to average incomes. The aim is to enable these households to build or acquire self-occupied residential property.
What is funded?
The program supports the construction or acquisition of owner-occupied housing in the form of single-family homes, two-family homes, and condominiums. Both new construction and the first and second acquisition of existing properties are funded, subject to certain costs and technical requirements.
Type and Extent of Funding
The funding is provided in the form of an interest-subsidized loan from BayernLabo. The loan amount is limited to a maximum of one third of the total costs of the owner-occupied housing, with a de minimis limit of 15,000 Euros. The fixed interest rate period can be 10, 15, or 30 years.
Conditions and Requirements
Specific legal and technical requirements apply to the application and funding. These include adherence to income limits, a required equity contribution, and securing the loan with a land charge. There is no legal entitlement to the funding.
Application Procedure
The application for the interest-subsidized loan must be submitted to the competent district administrative authority before the start of construction or conclusion of the contract. The district administrative authority examines the application and decides on the approval, with BayernLabo being involved in the banking assessment. BayernLabo is subsequently responsible for the disbursement and administration of the loans.
Legal Basis
The legal basis of the Bavarian Interest Rate Reduction Program is an announcement by the Bavarian State Ministry of the Interior from 2005, last amended in 2023. Additionally, the Bavarian Housing Promotion Act and the Housing Promotion Regulations 2023 apply.
Funding Overview
Maximum Amount:
maximum one-third of total costs
Deadline:
always open
Open Until:
31.12.2025
Award Channel:
Demand Driven Scheme
Region:
Bavaria (Germany)
Sectors:
Other
Beneficiaries:
Households with low to average incomes
Funding Stages:
Planning, Implementation
Funding Provider
Program Level: Regional
Funding Body: Bavarian State Ministry of the Interior, Bavarian State Ministry for Housing, Building and Transport
Managed By: Bavarian State Credit Institution (BayernLabo), competent district administrative authority
Website: Freistaat Bayern – BayernPortal