The subsidy is intended to help people seeking housing to form their own home by building or acquiring a house or condominium for their own residential purposes (= owner-occupancy, Art. 3 (1) Sentence 4 of the Bavarian Housing Subsidy Act, BayWoFG).
The state promotes the creation or acquisition of owner-occupied housing within the framework of the Bavarian Housing Promotion Program.
Households that are not only temporarily residing in the federal territory and are legally and factually in a position to establish a residence as the center of living relations for their household for a longer period of time and thereby 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.
In the case of construction of housing, the total costs as defined in §§ 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 for funding.
In the case of the purchase of residential property, the purchase price and the acquisition costs are eligible; in the case of a second purchase (= used residential property), the costs of any necessary modernization and repair measures are also eligible.
Type and amount
The subsidy is provided in the form of a low-interest construction loan (0.5 percent interest) for a period of 15 years.