The purpose of the subsidy is to help people seeking housing to become homeowners by building or purchasing a house or condominium for their own residential purposes (= owner-occupation, Art. 3 (1) sentence 4 of the Bavarian Housing Subsidy Act, BayWoFG).
The state promotes the creation or acquisition of owner-occupied housing as part of the Bavarian Housing Construction Program.
Households that are not only temporarily resident in the federal territory and are legally and actually able to establish a long-term residence for their household as the center of their living relationships and to run an independent household.
Funding for the purchase of owner-occupied housing is excluded if the seller and buyer are related in a direct line.
For the construction of housing, the total costs within the meaning of §§ 5 to 8 of the Ordinance on Housing Calculations under the Second Housing Act (Second Calculation Ordinance - II. BV) (= land, construction and ancillary construction costs) are eligible.
In the case of the purchase of housing, the purchase price and the purchase costs are eligible; in the case of a second purchase (= used housing), the costs of necessary modernization and repair measures are also eligible.
Type and amount
The subsidy is provided in the form of a low-interest building loan (0.5 percent interest) for a period of 15 years.