Purpose
The subsidy is intended to help people seeking housing to become homeowners by building or purchasing a house or a condominium for their own residential purposes (= owner-occupancy, Art. 3, para. 1, sentence 4 of the Bavarian Housing Promotion Act (BayWoFG)).
Subject Matter
Under the Bavarian Interest Subsidy Program for the Promotion of Homeownership, the state provides subsidies for the construction or purchase of owner-occupied housing.
Grant Recipients
Recipients of grants are private individuals.
Eligible Costs
When constructing housing, the total costs as defined in Sections 5 through 8 of the Ordinance on Housing Calculations under the Second Housing Construction Act (Second Calculation Ordinance—II. BV) (= land, construction, and ancillary construction costs) are eligible for funding.
When purchasing housing, the purchase price and acquisition costs are eligible; in the case of a resale (i.e., used housing), the costs of necessary modernization and repair measures are also eligible.
Type and Amount
The funding is provided as a grant. The funding is provided as a loan.
The type of funding is project-based.
Under the interest subsidy program, funding is provided in the form of a low-interest loan covering up to one-third of the total costs. In addition, a child allowance of 5,000 euros per child may be granted in conjunction with the loan.