Funding · July 2026

Renovation Loans 2026 — What's New

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.

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.

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.

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: Förderung energetische Sanierung im Überblick (German only for now).

FAQ for this article

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 500, 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 — the bank pays the commission. I'll check how funding, top-up loan and equity can be combined for your project.

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