Construction financing for self-employed

Even if the interest rate for self-employed persons and freelancers is somewhat higher, these occupational groups receive real estate financing from many banks.

Construction financing for the self-employed and freelancers is generally more costly and difficult than for salaried employees and civil servants. This is due in particular to the higher administrative costs on the part of the bank as well as the usually fluctuating incomes of the applicants. While the salary of employees regularly arrives in the same amount, the self-employed person is dependent on the payment morale of his business customers. Therefore, real estate financing for self-employed and freelancers is generally possible, but usually associated with interest surcharges.

Find the best interest rate for construction financing for the self-employed

Since interest surcharges are common, a loan comparison is particularly worthwhile. Determine the most favorable conditions from the offers of the offerers. Fast and uncomplicated.

What do banks look for in real estate financing for the self-employed and freelancers??

Self-employment should have existed for at least 3 years

Self-employed and freelancers should in any case plan a construction financing early, because most banks require that the self-employment has existed for at least 3 years. Within the first 3 years, self-employed people are usually rejected as start-ups. If your business is less than 3 years old, it is possible to bring a second borrower (such as your spouse) on board. Ideally, the spouse should have his or her own income from employment.


Credit institutions look primarily at the profit before taxes. This should therefore not be subject to strong fluctuations and ideally show an upward trend. Most lenders calculate an average value from the pre-tax profit of the last 3 years. From this average value, a deduction of up to 30% is made, which takes into account the taxes to be paid and the retirement provision. Lenders consider the remaining part as net income, which they include in their budgetary calculations and from which the real estate financing is to be financed.

Income in retirement age

If the real estate loan runs into the retirement age due to the repayment amount, self-employed persons and freelancers must prove income or pension entitlements in a sufficient amount. This is a problem for many self-employed people, as they assume that they will be working into old age and have therefore not made any pension provision. do not have private pension provision or other pension income in a sufficient amount. Banks, however, usually calculate with the same retirement age for the self-employed as for employed borrowers and therefore do not take into account any income from self-employment from retirement onwards.

Doctors and lawyers are given preference, while restaurateurs and traders are disadvantaged

Lending institutions also evaluate the industries of the applicants differently. For example, restaurateurs, car dealers or operators of tanning and fitness studios are considered problematic. In general, construction financing for freelancers (such as lawyers, appraisers or doctors) is much easier than for the self-employed and professionals (such as entrepreneurs, traders or craftsmen).

A higher equity contribution improves the chances of loan approval

It has an advantageous effect if you bring a lot of equity into your house or apartment financing. This increases the security for the bank, so that many of the strict requirements are omitted.

Type of real estate use

The project itself is also important. If residential property is purchased for own use or is to be rented out and serve as a retirement provision, banks are more inclined to approve it than if it is commercial real estate financing.

Higher effort for banks and self-employed people

As proof of income for employees and civil servants, the last salary statement or salary statement can be sufficient. If the applicant is self-employed or works as a freelancer, on the other hand, more documents need to be submitted. This includes:

  • the most recent surplus income statements or balance sheets (depending on whether or not a balance sheet is drawn up)
  • current business evaluations including a list of totals and balances
  • Income tax assessment notices and income tax returns

Online calculator for construction loans for the self-employed

Easily calculate benchmarks for the interest rate of your real estate loan.

Use our free online calculator and determine an interest rate indication for a construction loan for the self-employed.

Calculate benchmarks for the interest rate of your loan. Compare how the results change for different interest rate fixings and with different equity use.

Calculate in an uncomplicated way how much a house or a property may cost so that it fits into your budget.

How home financing works for the self-employed

We will guide you through the uncomplicated process in just 4 steps.

Inquiry& Consultation

You contact us (request financing). Your personal financing expert will contact you shortly and discuss your planned real estate financing with you. It clarifies details, answers your open questions and takes important key data for the subsequent analysis.

Our advice is free of charge and without obligation for you, independent of bank interests.

Bank comparison& Analysis

Based on your information and personal wishes, we compare, analyze and identify the most favorable loans for you from the offers of the eligible loan providers.

Offers& Documents

With your personal offers you will receive a list of the required documents, which the financing providers need for their credit decision. If you have any questions, your personal advisor will be happy to help you at any time.

Contract& Disbursement

Once you have decided on an offer, we will hand over your documents to our financing partner for the final credit check, for which you have chosen. If the lender approves your loan request, the loan agreement will be sent to you a short time later. The disbursement of your home financing for self-employed persons can now take place on your desired date.

You are interested in a favorable construction financing for self-employed persons?

Then ask for quotes for construction money without obligation. Our experienced financing advisors compare the offers of the credit banks for you and thus determine the most favorable financing options.

Request free quotes here.

You might also be interested in

All financial calculators for your real estate project at a glance

Loan types simply explained, with all important advantages and disadvantages at a glance

Where are the interest rates? See the daily updated conditions here.

Borrow your house, apartment or undeveloped land and get cheap money for free use.

Like this post? Please share to your friends:
Leave a Reply

;-) :| :x :twisted: :smile: :shock: :sad: :roll: :razz: :oops: :o :mrgreen: :lol: :idea: :grin: :evil: :cry: :cool: :arrow: :???: :?: :!: