As a self-employed person, it is often difficult to get a loan for financing a home. Banks tend to consider the income of self-employed people as more uncertain than that of employees. In addition, it can be more difficult to provide evidence of income and creditworthiness.
But despite these difficulties, there are banks that offer loans for the self-employed. To find the best options, you should carefully compare the offers of different banks. In this article, we will examine which banks offer loans for the self-employed and what conditions they offer.
If you are self-employed and want to finance a home, this article is an important first step. We will help you get the necessary information to find the best options for your construction financing.
The difficulties of construction financing for the self-employed
Self-employed people often find it difficult to obtain construction financing because they do not have a regular income. Unlike employees who draw a monthly salary, self-employed people’s income often fluctuates and is not always predictable.
In addition, many banks require a higher equity ratio from the self-employed than from employees. This is because self-employed individuals pose a higher level of risk. If business does not go as planned, it may be more difficult to repay the loan.
Another problem is that self-employed people often have difficulties in proving their income situation. Often there are no fixed pay slips or wage slips that can be presented when the loan is granted. Here, balance sheets, profit and loss statements or even tax statements can help to show the financial situation.
Despite the difficulties, however, there are banks that offer construction financing specifically geared to the self-employed. Individual agreements can be made here that are tailored to the needs and income situation of the self-employed.
These banks include, for example, Deutsche Bank, ING-Diba and Commerzbank. It is therefore worthwhile to compare different offers and to inform yourself well about the conditions and requirements for construction financing as a self-employed person.
Construction financing for the self-employed: banks with the best offers
If you want to build or buy a property and you are self-employed, it can be difficult to find a suitable lender. Many banks have concerns about the creditworthiness of the self-employed and often charge higher interest rates.
However, there are some banks that also offer favorable terms to self-employed individuals. One of these banks is Deutsche Bank. It offers both construction loans and mortgages with low interest rates and flexible repayment arrangements.
Another option is Commerzbank, which prides itself on its years of experience in construction financing. The offer is aimed specifically at the self-employed and offers fast and uncomplicated processing.
- Targobank is another bank that offers construction financing for the self-employed. Here you can find low-interest loans with a flexible repayment schedule.
- The savings banks also offer special construction financing for the self-employed. Here you have the opportunity to find the best offer for your needs with an individual counseling interview.
- In addition, it is also worth asking regional banks, as they often also have special offers for the self-employed.
It is important that you carefully compare the different offers of the banks and consider your individual needs before deciding on a loan. Also, don’t forget that as a self-employed person, you often have to offer higher collateral than employees to guarantee creditworthiness.
Requirements for construction financing as a self-employed person
Construction financing as a self-employed person can be a great option to fulfill the dream of home ownership. However, there are some prerequisites that must be met in order to enable a financing-relevant assessment of the income.
First of all, as a self-employed person, you must prove that your business is stable and profitable. This usually requires several years of company balance sheets. You must also be able to prove your tax obligations.
Furthermore, it is important that you have a good credit rating. This means that you pay your bills on time and have no negative entries in Schufa.
Construction financing for the self-employed: which banks give loans?
If you are looking for construction financing as a self-employed person, it is important to inform yourself comprehensively about the different banks and their offers. Some banks have special loans for the self-employed on offer, while others have particularly strict requirements.
- Savings banks: Savings banks often offer a good option for the self-employed, as they have regional roots and know the business of borrowers. However, there are often strict requirements for creditworthiness and stability of business here.
- Volksbanken: Volksbanken are organized in a similar way to savings banks and often offer special loans for the self-employed person. Here too, however, high requirements must often be met.
- Online banks: Online banks such as ING or comdirect are often a good option for the self-employed, as they have less stringent creditworthiness requirements. However, these banks often have higher interest rates than traditional banks.
It is important to take enough time and compare different offers to find the best construction financing for your needs. An independent financial advisor can help you make the right choice.
What documents are necessary for construction financing as a self-employed person?
Construction financing as a self-employed person can be more complex than construction financing as an employee. Banks are often more cautious when granting a loan to a self-employed person. It is therefore important to provide all the necessary documents to clearly demonstrate your financial situation.
Basic documents include the last three balance sheets or income statements, an overview of outstanding invoices and orders, and the current order situation. A business management analysis (BWA) serves as supplementary information and provides insights into the company’s financial situation.
In addition, information on personal creditworthiness is required. This includes the Schufa score, which can be requested in a self-report, and a tax certificate or income tax return. The submission of insurance documents or evidence of other sources of income may also be required by some banks.
- In summary, the following documents are necessary for construction financing as a self-employed person:
- – Last three balance sheets or income statements
- – Overview of open invoices and orders
- – Current order situation
- – Business management analysis (BWA)
- – Schufa score
- – Tax certificate or income tax return
- – Insurance documents or evidence of other sources of income
It is advisable to contact various banks in advance of the construction financing and to clarify the necessary documents. Not all banks grant construction financing for the self-employed and the requirements can vary.