So unfortunately, I believe they changed how the funding works as of this year. Most likely due to the budget cuts. You can only apply for funding before you begin a master's program in Germany. They changed that rule mid-cycle and a lot of people who were applying in their second year became in-eligible during this cycle which was kind of scummy tbh.
So yeah, as far as I know, if you don't get funding, you can either delay your program and apply next year or start anyway and become in-eligible for year 2.
My program is in a low-cost of living city, and I'll have 12K saved up by the time in starts. So, I could realistically fund my 1st year and then I might do a mini job and apply for local scholarships like the Deutschlandstupendium if DAAD doesn't work out. If you're in a place like Berlin, Köln, or München though then that's a bit riskier.
What's your target program/city?