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State Guarantees for Housing Promotion
Open

Guarantee
Last updated: 14.6.2025

The Free State of Bavaria offers state guarantees to support housing finance, especially when applicants lack the necessary credit collateral. This program facilitates financing for new construction, modernization, or the initial purchase of residential property. It enables both private individuals and companies and associations to meet their housing needs in Bavaria.

Who is funded: Target groups and regional coverage

The Free State of Bavaria supports borrowers in housing finance through state guarantees. The funding aims to enable the creation and modernization of housing, as well as the acquisition of properties for self-occupation in Bavaria, especially when the required collateral for a loan is missing. Eligible applicants include private individuals, companies, and associations/organizations, with loans from public funds or to public entities being excluded.

What is funded: Measures and Costs

State guarantees support a range of housing-related measures, including new construction, modernization, and the acquisition of self-occupied residential property. There are clear criteria for the eligibility of projects and costs, with overly elaborate constructions and certain types of loans explicitly excluded from funding.

Type and Extent of Funding

The funding program of the Free State of Bavaria offers default guarantees to secure housing finance. The amount of the guarantee is based on the long-term security of interest and principal payments, with a minimum loan amount of EUR 5,000. Processing fees are charged, which may vary depending on the type of guarantee and the time of application.

Conditions and Requirements

For the use of Bavarian state guarantees, specific requirements apply regarding the adequacy of the housing, the necessary equity, and compliance with state aid rules. In addition, certain conditions for the application and the duration of the guarantee decision must be met to ensure the effectiveness of the guarantee.

Application Procedure

The application procedure for the Free State of Bavaria's state guarantees is primarily carried out through the lender and is structured in clearly defined steps, from the submission of forms to the issuance of the guarantee declaration by BayernLabo. The review covers eligibility and the borrower's creditworthiness.

State guarantees for housing promotion in Bavaria are based on specific guidelines issued by the Bavarian state ministries. These guidelines define the conditions and framework for assuming guarantees and are supplemented by other relevant laws and regulations.

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Funding Overview

Maximum Amount

Maximum Amount:

Amount ensuring long-term security of interest and principal payments

Deadline

Deadline:

always open

Open Until

Open Until:

Ongoing

Award Channel

Award Channel:

Demand Driven Scheme

Region

Region:

Bavaria (Germany)

Sectors

Sectors:

Other

Beneficiaries

Beneficiaries:

Housing Construction & Modernization

Funding Stages

Funding Stages:

Implementation, Infrastructure

Funding Provider

Program Level: Regional

Funding Body: Bavarian State Ministries of Finance, Bavarian State Ministries of the Interior

Managed By: Bavarian State Bank for Land Credit (BayernLabo)

Website: Bayern Labo