Construction Financing: Raising the Bar for freelancers

Who is self-employed, it is often difficult to get a mortgage. Only gradually some banks think. Well-prepared documents help mostly to success.

Farugula Sievering the matter had actually just presented. As an interpreter, she earned not bad, and her parents had inherited 100,000 euros. Now she wanted to acquire as an investment property valued at 350,000 euros.

Nevertheless, waved from all the banks with which they made contact. In some branches, she recalls, not one made the effort to look at their records at all. “No unusual reaction,” says Christian Schmid-Burgh, responsible for the subject of mortgage lending at the center for Hamburg. Cases such as these meet him still over in his advice every day. And the reason that got to hear Sievering is almost always the same: Without Permanent default risk was too high.

At first glance, logical sounding and also liked used argument – which, however, can not be proven. Independent studies that actually show that a missing paycheck leads to higher losses, there is not. This also highlights Michael Knobloch, the Department of the Institute of Financial Services in Hamburg ( IFF are) bankruptcies and indebtedness. Therefore, bankers argue like with “internal evaluations” or simply “experience” when they shoot down inquiries from freelancers or self-employed.

Knobloch sees the problem because even less in actual risk, but in the effort. “It’s easier now even to read a payslip as a balance sheet.” This assessment is shared by Jens welfare, mortgage expert at Deutsche Bank. but they do not prevent him from. “We support self-employed in their business finances, so of course their private financing plans.” The German bank is one of the few institutions that has always also issued loans to freelancers and self-employed. Today, says welfare, go one in five mortgage lending to this target group. To make this possible, it has the expert explicitly, be both a much higher expenditure of time and more knowledge is necessary. However, if the test conscientious, he is sure “there is no higher default rates.”

A realization that prevails slowly but surely also in other houses. We’re still a few years ago only a few banks and building societies willing to think, the front is crumbling slowly. Meanwhile, jump even direct banks on the train. ING-DiBa, for example, started several years ago to include freelancers, self-employed for two years and can get a private construction loan under certain conditions – for example, for a follow-up financing.

However, and as all bankers are unanimous: To come together lenders and borrowers, the borrowers have to go to great lengths. They can also affect the process, says German bank man welfare. “The more documents to be bought at the first appointment and the better prepared they are, the faster the process is.” In Idealfal credit would at Deutsche Bank then freelancers and self-employed within a day available.

But not all applicants that know Heribert Hechinger, deputy head of the credit department at LBS in Munich, the credit conversation prepare properly. This would involve just that reflect professionalism and thus significantly increase the odds of a favorable decision. “Current income statements alone are not enough,” says Hechinger. The potential borrower must be able to demonstrate the results of its operations for the past three years. And should be able to provide information potential builders and homebuyers using the compensation of possible loss of income in case of illness or changes in the economy.

However, even if a freelancer or self-employed can teach all documents with a complete equality of treatment cannot be expected even. In addition, freelancers are measured by varying degrees. The ING-DiBa, for example, operates with a so-called positive list. On this, however, are lawyers and architects, pilots or artist not inevitable. Another hurdle: Even if you meet all criteria, can only reliably count on a loan if he is given the object itself. “Otherwise, there are limitations because the risk of loss of rent is too high,” explains Franz gap, head of real estate financing.

In addition, flat rate risk premiums are collected from many vendors, despite the careful preliminary review. Although this is not the case, the calculation of personal risk is assessed on a different basis. So much higher reserves to hedge are required, as well as crediting the current income higher flat rates are taken into account for this purpose.

Another problem: Because not all banks do business, it is difficult for non-regular employees to obtain compare offers. The greatest opportunities, grants direct bankers a gap, have the customer remains in-house bank. Because they have the best number basis, enabling it to calculate.

This does spokesman Schufa could, according to Christian Seidenabel, change in the future. The bureau is currently examining what options are available to provide banks meaningful data also freelancers available. If this is successful, it is Seidenabel is convinced that this would not only significantly increase the access of this group to credit, but also lead to better terms. “For then compare, offers can catch up.” Frauke Sievering no longer interested. She has now invested their money elsewhere – and still living in rented accommodation.