How to get a maternal mortgage loan
The situation in the housing market is such that to become the owner of your own apartment is almost impossible for a person with average incomes. But families with children can get state help to improve their living conditions.
When a second child appears in the family, the state allocates money that can be spent on the education of children, the retirement of the mother or the purchase of housing - the so-called maternal (family) capital. Using these funds, you can use one of the special mortgage programs offered by banks. How can you take a mortgage loan under the maternity capital?
Getting a mortgage under the maternity capital
The recipient of maternity capital chooses a bank that offers a similar mortgage lending program and applies for a loan, applying a certificate to receive the due maternal (family) capital to the application.
Bank employees will determine the maximum amount of the loan and individually set the interest rate on the basis of checking the documents provided by the person and the solvency of the borrower and co-borrowers. To the maximum possible loan amount, estimated on the basis of the level of total family income, is added the amount of maternity capital, which for 2017-2018 is 480 thousand rubles.
The borrower receives a two-part mortgage loan. One, taking into account the accrued interest at the rate set by the bank, he repays independently from his own income, which he earns by building a career in a firm, and the second repays the Pension Fund in the amount of capital, the borrower pays interest for using this part of the debt at the refinancing rate of the Central Bank of the Russian Federation, but only until the maternity funds are received by the bank.
The money relying on payment under the certificate is transferred directly to the account of the bank in which the loan agreement is concluded, only after registration of the housing acquired in the mortgage, into the common equity ownership of the recipient of capital and his children.
With this scheme, the bank increases the approved amount of the loan on the amount of capital, which increases the chances of acquiring a decent living space, even if the borrower does not earn enough money.
Partial repayment of the mortgage by the parent capital
When a mortgage agreement is concluded before the appearance of the second child in the family, immediately after his birth or adoption, the family can use these funds to repay the loan.
Until recently, it was impossible to use the maternity capital until the second child reached the age of 3, but now, if there are obligations on a mortgage loan, it can be spent immediately. It is enough to get a certificate on the website of the department confirming the right to parent (family) capital. Then, the document should be submitted to the creditor bank, at the same time fill out an application for payment of funds to the Pension Fund and submit a valid mortgage agreement there. The application will be considered within the timeframe set by the law and the Pension Fund will transfer the money to the bank to pay off the obligations under the mortgage agreement.
There are some limitations when paying the borrower's debt in a bank:
- The residential property acquired through a mortgage is located in the territory of the Russian Federation;
- The loan agreement clearly states the purpose of the loan - “for the purchase of residential premises at ...”, indicating the area of an apartment or house;
- Housing acquired in a mortgage is issued in the share ownership of the recipient, children and other family members;
- The borrower or co-borrower under the mortgage agreement is necessarily the recipient of the maternity capital or the person who is officially married to him;
- Maternity funds can only be used to pay off the principal and interest accrued. The borrower will have to pay fines, penalties and fees.
The loan balance, after the repayment of its part by the parent capital, is subject to restructuring - the amount of monthly payments will decrease, and the repayment period will remain unchanged. There will be free funds for the purchase of fashionable clothes or household appliances: teapots, toasters.
Making a down payment by the parent capital
Without having your own savings to make a down payment, you can get a mortgage, if you have a certificate.The bank can allow the borrower not to pay the initial installment before issuing the loan, but simply waits until the Pension Fund transfers funds to pay for it. The contribution is at least 10% of the cost of purchased housing. The size of the loan itself depends on the borrower's solvency.