Which KfW programme fits your property and intended use?

The right KfW programme depends on three facts: whether the building is new or existing, whether you will live in it or let it, and what you are paying for (a purchase, a renovation or a new heating system). For a rental investor, the routes are few. A new-build apartment bought to let points to loan 298, or 296 if the project meets its stricter rules. An existing building points to 261 for a renovation to an efficiency-house standard (Effizienzhaus) and to the 458 heating grant, at the base rate only for a let flat. The owner-occupier loans 124, 300 and 308 do not fund a purchase to let. Most are loans, not grants, and most must be applied for before you sign.

This guide selects the route. Programme requirements and application steps are in KfW's information on KfW 298, KfW 261 in a WEG and heating grants for rented apartments.

1. New or existing? KfW's new-build loans cover construction and the first purchase (Ersterwerb) of a new home: a purchase within 12 months of the building's formal acceptance (Bauabnahme, § 640 BGB) (297/298 product sheet). Anything later belongs to the renovation and heating programmes.

2. Will you live in it? The new-build loan is split: 297 for private individuals who live in the home, 298 for those who do not and for associations, partnerships and companies.

3. What is being funded? A purchase or construction, a whole-building renovation, or a single measure such as heating. Single measures on the building envelope, such as insulation or windows, are funded by the federal office BAFA, not KfW (BAFA).

Checked on 3 October 2026 against KfW's product pages and product sheets (Merkblätter). "Open" means the product page was live with no application stop. KfW states that there is no legal entitlement and that funding depends on available federal money. Check the linked page again before you rely on a row.

Sources for the EH 55 end date: KfW, Klimafreundlicher Neubau overview and KfW press release of 30 September 2026. For new builds, KfW's new-build overview shows which loans can be combined.

KfW uses three instruments.

• Loan with an interest subsidy (297, 298, 296, 300, 308). The rate is reduced from federal funds, but you repay every euro. It is fixed for up to ten years; for a longer term, KfW then offers a renewal without the federal subsidy (298 product sheet). 124 is a plain low-interest loan.
• Loan with a repayment subsidy (Tilgungszuschuss), as in 261. Once your energy expert confirms the standard reached, KfW credits a percentage of the loan against the debt: 15 per cent for Effizienzhaus 40 NH, up to €22,500 on a €150,000 loan. Bonuses can lift it to 40 per cent (€60,000) in the best case; Effizienzhaus 70 EE and 85 EE receive none. The credit shortens the loan and is never paid in cash (261 product sheet).
• Grant (Zuschuss), as in 458, paid into your account after the work is finished and the proof checked.

Two more points matter. These loans allow no partial special repayments (Sondertilgungen), only full early repayment against a prepayment charge (KfW 298, KfW 261); compare special repayments. And public funding can have tax consequences, on which KfW refers you to the tax office or a tax adviser (Steuerberater) (261 product sheet).

KfW 298 is the new-build route for a private landlord. The tier depends on the evidence behind the project: Effizienzhaus 40 with a life-cycle assessment, the same with a QNG sustainability certificate (Qualitätssiegel Nachhaltiges Gebäude), or the temporary Effizienzhaus 55 tier. A brochure's target label is not evidence; see what QNG and Effizienzhaus labels prove. QNG can also matter for the special depreciation under § 7b EStG, but that is a separate test with its own dates (Sonder-AfA under § 7b).

Three conditions are easy to miss (298 product sheet):

• Purchase timing. Only a first purchase within 12 months of acceptance qualifies.
• Ten years of residential use. If you sell within that period, you must tell the buyer about the funding; a change of use must be reported, and KfW may reclaim part of the funding.
• Liability for the standard. The buyer answers to KfW if the standard is missed or cannot be proved. KfW recommends a contract clause making the seller liable for the agreed tier.

KfW 296 is open to private individuals whether or not they live in the unit, but its floor-area and life-cycle cost rules have to be designed into a project. Ask the developer whether that was done (296 product sheet).

KfW 261 funds the renovation of an existing residential building to an Effizienzhaus standard. Under the federal guideline in force since 21 July 2026 (product sheet valid from 24 September 2026), each tier comes as an EE or NH class, at least 65 per cent of heating and cooling energy must come from renewables or unavoidable waste heat, and gas heating is not funded (261 product sheet).

In a condominium, the owners' association (WEG) decides on work to the common property. It can apply as one borrower through its administrator, or each owner can apply for their share under the association's resolutions; see KfW's renovation programme information.

261 does not fund the ordinary purchase of an existing apartment. Its only purchase route is the first purchase of a freshly renovated building or unit within 12 months of acceptance, with the renovation costs shown in the contract or a separate cost statement.

KfW 458 is a grant for heat pumps, biomass, solar thermal and other listed systems, or a heat-network connection, in an existing residential building. A flat owner applies for work in their own unit (Sondereigentum, the part you own outright), let or not. The WEG applies, through an authorised representative, for work on common property (Gemeinschaftseigentum). Who owns a storey heating system depends on the declaration of division (Teilungserklärung); see energy certificates and renovation costs.

The base grant is 30 per cent of eligible costs. The climate-speed and income bonuses go only to an owner living in the unit as their main home, so a let flat receives 30 per cent. Eligible costs are capped per building and shared equally across units; for one flat in a 12-unit building, that share is about €12,583, a grant of at most about €3,775 (458 product sheet).

KfW has announced changes: the first-unit cap falls by €750 every six months from 1 February 2027, and a value-added bonus planned for the first quarter of 2027 could lower the base rate for heat pumps made outside the EU (KfW's example: 15 per cent) (KfW 458). A landlord can borrow towards an approved measure through the supplementary loan 359 (358 is for owner-occupiers); details are in KfW's heating-grant information.

On "KfW investor vs owner-occupier", these three are plainly for owner-occupiers.

• 124, the KfW-Wohneigentumsprogramm, lends up to €100,000 for buying or building a home you live in; let or commercial space is excluded.
• 300 funds a new climate-friendly home for families and single parents with a child under 18, within an income limit.
• 308 funds such a household's purchase of an older home in energy class F, G or H, which must be renovated within 4.5 years.

KfW family home eligibility has a further condition that matters to investors. 300 and 308 exclude households in which a partner or child already owns residential property in Germany, whether lived in, let or empty (300 product sheet; 308 product sheet). A rental bought now can close those routes for a family home later. If that home is in your plans, weigh it before you buy a rental while you rent.

KfW loans are applied for through a financing partner (Finanzierungspartner): usually your main bank (Hausbank), but any bank, savings bank, building society or insurer can act, agreeing collateral with you and passing the application to KfW. The timing rules differ by programme, so check the current product sheet. As of 3 October 2026:

• 298, 296 and 261. The date the application reaches KfW counts, not the date the bank receives it. Starting first rules out funding, and for a first purchase, signing the purchase or developer contract (Bauträgervertrag) is the start. A contract under a condition precedent (aufschiebende Bedingung) linked to KfW's approval does not count, provided you apply before the first payment; the condition cannot be added later. For the Effizienzhaus 55 tier, purchase contracts must date from 16 December 2025, even with a condition (298 product sheet; 261 product sheet).
• 124 and 308. Apply before signing the purchase contract (KfW 124; KfW 308).
• 458 is different. You sign a works contract with a condition linked to KfW's approval, then apply yourself in KfW's portal, Meine KfW, before work starts. Outside a WEG application, nobody can apply on your behalf (458 product sheet).

This sits inside the rule of holding a binding loan offer before the notary appointment (buying process). Alpha Minoris's Buyer's Agent service coordinates that financing step for purchases in Berlin, Dresden and Leipzig, and you need not live there. In a new-build purchase, it collects the documents the lender and energy expert will ask for, such as the developer's energy-efficiency confirmation, the certification status and the draft contract, in time to apply before the appointment. Eligibility and approval stay with KfW's rules and your financing partner; Alpha Minoris does not file funding applications.

Illustrative example. Fictional properties; no loan amount, rate or approval is implied. Investor 1 is considering an apartment like Apartment B from our new-build comparison: Leipzig, 50 m², bought off-plan from a developer, let from completion. Unlike the shared example, Investor 1 is still at the reservation stage in October 2026. Investor 2 owns Apartment A: Leipzig, two rooms, building completed 1996, let, heating due for replacement.

The timing row cannot be fixed later. In our shared example, Apartment B's contract was notarised on 6 March 2025, so a 298 decision for a flat like it belongs before the notary appointment, not after.

Before you reserve a new-build apartment to let, ask which KfW tier the developer can evidence and plan the application before the notary date. Discuss your first rental property with Alpha Minoris.