KfW 308 Jung kauft Alt – Renovation loans: German funding 2026 — the two changes that matter
The funding landscape is stable at its core — BAFA for the building envelope, KfW for heating and full renovation, plus the tax credit. But 2026 brings two time-limited changes that can mean real money for buyers and renovators, including better terms under KfW 308 Jung kauft Alt from 3 August.
Which funding can you use for renovation in Germany in 2026?
Renovation in Germany draws on three pots: BAFA for the building envelope and technical systems, KfW for the heating system and full renovation, and a 20% tax credit over three years for owner-occupiers under §35c EStG. For the same measure you get either funding or the tax credit, not both. Two time-limited changes apply in 2026.
New from 1 July 2026: "Commercial-to-residential"
Turning vacant office and commercial space into housing — that's exactly what the new KfW programme "Gewerbe zu Wohnen" (266) funds.
Anyone converting a heated building or part of a building not previously used for residential purposes into housing receives a 30% grant of up to €100,000 per residential unit — so up to €30,000 per new unit created. Important: the programme is time-limited until 31 December 2026 — anyone planning to convert should not push the application into next year.
What condition applies to the Gewerbe zu Wohnen grant?
The living space must reach at least Effizienzhaus 85 EE or Denkmal EE standard within a maximum of 4.5 years. Without the EE class it is possible if the heating system is at most five years old or renewable energy already reaches 65%.
The condition: the resulting living space is renovated to at least Effizienzhaus 85 EE or Denkmal EE standard, to be completed within a maximum of 4.5 years. It's also possible without the EE class if the heating system is at most five years old or the share of renewable energy already reaches 65%. Important: the programme is time-limited until 31 December 2026.
KfW 308 Jung kauft Alt: better terms from 3 August 2026
The "Jung kauft Alt" (308) programme is aimed at families with at least one child under 18 who buy a property in need of renovation (energy class F, G or H) as owner-occupied housing and then renovate it — to at least Effizienzhaus 85 EE or Denkmal EE standard, within a maximum of 4.5 years.
What changes for Jung kauft Alt from 3 August 2026?
From 3 August 2026 the loan rises to a maximum of €140,000 to €180,000, and individual measures also become possible without having to reach the full Effizienzhaus standard.
Until now, this came with a low-interest loan of €100,000 to €150,000. From 3 August 2026, the terms improve significantly: the loan rises to a maximum of €140,000 to €180,000, and individual measures also become possible, without having to reach the full Effizienzhaus standard. That opens the programme up to step-by-step renovation.
The framework stays the same: three pots
Regardless of what's new, the familiar split still applies: BAFA funds the building envelope and technical systems (15%, +5% with a renovation roadmap), KfW funds the heating system (programme 458, up to 80% since 21 July 2026) and full renovation (261), and the tax office offers a 20% tax credit over three years for owner-occupiers under §35c EStG. One important rule: for the same measure, you get either funding or the tax credit — not both.
The full overview — which pot covers which measure, how large the grants are, and how the heating-replacement bonuses reach up to 80% — is on the German site: Energy renovation subsidies at a glance (German page) (German only for now).
Note. Figures reflect the current programme status (July 2026), without guarantee — the KfW and BAFA guidelines are what apply. This article is for orientation and does not replace tax or legal advice. Brokerage of consumer mortgage loans under the permit per §34i GewO (Olga Nikushkina).
Frequently asked questions
Is "commercial-to-residential" worthwhile for small conversions too?
The programme targets converting heated space not previously used for housing into residential units — up to €30,000 in grant funding is possible per unit created. Whether it pays off in a given case depends on the renovation target (EH 85 EE or Denkmal EE) and the deadline at the end of 2026. We're happy to work through the financing of the non-funded portion with you.
Why is it worth waiting until August for "Jung kauft Alt"?
From 3 August 2026, the low-interest loan rises to up to €140,000–180,000, and individual measures also become eligible without reaching the full Effizienzhaus standard. Anyone already planning to buy should take the improved terms — but the exact timing depends on the purchase contract and renovation schedule.
Can these programmes be combined with other funding?
In principle, combining public funding is possible, but capped, and only one application may be made for the same eligible costs. What can sensibly be combined depends on the specific project — the KfW guidelines are what matter.
Do you handle the funding applications?
No — the funding applications go through your energy efficiency expert and the specialist contractor. We take care of the financing: the right bank from over 650, the KfW top-up loan, and a sustainable repayment structure. The initial consultation is free and non-binding.
Discuss financing including funding
Free, non-binding initial consultation — as a rule the bank pays the commission. we’ll check how funding, top-up loan and equity can be combined for your project.
Related pages
Energy renovation subsidies at a glance (German page)
Sanierung Förderung: BAFA-Zuschuss, KfW 458 und 261 und Steuerbonus nach §35c — wer was fördert und was sich wie kombinieren lässt.
What They Mean for a Mortgage for Expats
Mortgage for expats in Germany, July 2026: the ECB raised rates in June — yet the 10-year Bund yield fell. What that means for your fixed or variable rate.
Renovation cost calculator: what does your project cost before funding applies?
If you are planning several measures, list them separately, because funding is tied to the individual measure and its technical requirements.
KfW programmes 2026: which exist and how much funding does each offer?
Subsidised funding makes a mortgage noticeably cheaper — but only if the application is filed in time and through the right bank. Neither is a formality.
German notary costs: what will the notary and land registry charge you?
Anyone who factors these costs into their equity planning from the start avoids an unpleasant surprise shortly before the notary appointment.
Home improvement loan: when are renovation loans the better choice over a mortgage?
Real offers from several German banks for renovation or modernisation work — no land registry entry required, usually faster than a mortgage.
Editorially responsible: Olga Nikushkina — owner, §34i GewO (German mortgage brokerage), adviser register D-W-132-ZUCB-95. Specialised in German property financing with an international dimension: non-residents, foreign-currency income, cross-border workers, expats. Siegfried Perini is entered in the German intermediary register under this licence as a person directly involved in brokerage and advice (§ 11a GewO), active in real estate since 1992. Not legal or tax advice.