What are the terms of the social mortgage?

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Modern housing is very expensive. Most people in our country can't afford it. In Soviet times, the state built it at its own expense and simply distributed it to its citizens. In the nineties, with the collapse of the country, the former housing system collapsed.

But the problem remains. Some Russians have recently become much richer and have begun to build luxurious apartments. However, the rest of the inhabitants became even more impoverished compared to the Soviet era and were unable to solve their housing problems even on a minimal scale.

New government measures were needed to reduce tensions in the housing sector. In modern conditions, the way out was found in the social mortgage. So what are the conditions for a social mortgage these days?

Social mortgage

Social mortgage is the state support for certain preferential social categories of Russian residents. The conditions for obtaining a social mortgage are that beneficiariesborrow money to buy their own home. Mortgage is a kind of pledge of residential real estate (future or existing with the borrower) for the purchase of a loan. Issues of acquiring a social mortgage and establishing a loan program are specified by regional authorities.

Social assistance is issued in the form:

1. Covering the cost of a part of the cost of an apartment purchased with a mortgage.
2. Purchasing housing from the state at a small interest rate.
3. Compensation of part of the mortgage interest.

Target

The purpose of modern social mortgage lending programs operating in our country is the financial support of the Russian state to its citizens in improving their living conditions. The acquired loan can be implemented in the following areas:

• for the purchase of finished, previously built housing;
• for the construction of a residential building;
• for the purchase of a land plot where a residential building stands or its construction is planned;
• to pay off an existing mortgage.

In modern Russia, there are a number of mortgage programs supported both from the Russian federal budget and partially from regional provincial budgets. Along with the usual (standard) mortgage, there is also a social structure of mortgage lending to certain segments of the population. According to such a social mortgage, the conditions for obtaining will be softened as much as possible. Especially for the privileged segments of the population.

Features

The existing social mortgage to improve housing conditions allows socially weak categories of Russian citizens to improve their current housing conditions. That is, the state organizes such preferential social programs so that the purchase of housing becomes affordable for Russians with low incomes, for example, for families with many children, poor families, for state employees who do not have housing, for young officers, for young families, and so on.

Managing and coordinating the activities of all existing mortgage programs in Russia is a specially formed organization - AHML - the Agency for Housing Mortgage Lending. AHML develops the policy outlined by the state to increase the availability of affordable housing for Russians, and implements the function of a state body to form a market for mortgage social lending. The Agency should strengthen the balance of interests of all parties in the field of real estate - the Russian state, ordinary borrowers, private and public lenders and investors.

Signs

Specific terms of the social mortgage:

• provision to borrowers of preferential interest on a loan issued by a bank;
• issuance of targeted one-time subsidies or social payments for housing from the central federal or local regional budget;
• more preferential cost of purchased housing (usually, this is a typical economy class property);
• reduced down paymentwhen purchasing an apartment or house;
• help pay the interest rate on a home mortgage loan by issuing compensation;
• probability of monthly loan reduction ("payment holiday").

The main focus of social housing mortgages is on the elimination of existing housing hardships for that stratum of working Russians who receive relatively average and low financial income and at the same time really need their house (or apartment).

Expenditure structure

Under the terms of the social mortgage, the following financial cost structure is assumed:

1. Approximately thirty percent of the cost of housing will go to the buyer's share of the cost of housing.
2. The share of state assistance (the amount depends on the social category of Russians) is approximately twenty to fifty percent of the total cost.
3. The rest of the housing payment goes to the mortgage loan.

The described structure of payment for purchased housing, as a rule, increases the possibility of obtaining mortgage loans for residents of our country, and this, in turn, actively contributes to the growth of effective demand of Russians for residential buildings or apartments, thereby additionally financing the construction industry of the domestic economy and various industries dependent on it.

Specifics

The main difference between the existing conditions of social mortgages and ordinary or commercial mortgages is, ultimately, the lower cost of housing allocated to citizens. Besides,it is necessary to allocate additional guarantees that lenders receive from the issuing bank working under social housing mortgage programs:

1. Checking the "cleanliness" of the purchased residential premises.
2. Insurance and purchased housing, and the life of the borrower.
3. The promise of the bank to maintain the level of loan interest specified in the agreement until the end of the loan agreement.

Participants in benefit programs

Not all Russians can receive social mortgage conditions for obtaining a social mortgage loan. The number of beneficiaries can be made, first of all, those residents of the country who are officially identified as needing housing and standing in line for the purchase of housing in local executive authorities. In addition, Russians living in houses that are officially classified as unfit for normal living are included in those in need of housing; those who own housing in multi-apartment buildings included in the emergency list and prepared for demolition or modernization. This condition serves as a common feature for all clients of the social preferential mortgage.

Other conditions required to purchase a mortgage loan depend on the form of the social mortgage program:

• families with several children, in which the age of the wife or husband (or one parent in an incomplete family) is not higher than 35;
• families with three or more minor children;
• veterans officialfighting;
• young officers who became members of the Russian accumulative mortgage housing system;
• Russians working in state (or municipal) bodies that are part of scientific organizations or in the structure of a scientific service;
• Russians working in state educational structures, as well as he alth authorities, cultural structures, local social protection, employment systems, physical culture and sports authorities;
• employees of city-forming institutions, including science cities;
• workers working in the structure of the military-industrial complex;
• citizens working in state scientific bodies, as well as various structures organized by state academies of sciences;
• employees of state unitary institutions on the rights of ordinary scientific bodies, implementing their work in the leading areas of the formation of science and industry in Russia;
• Poor Russians at a reduced price, as well as other additional social guarantees).

Housing benefits for doctors

In addition to general social mortgages for housing, there are also separate ones aimed at helping social workers solve housing problems. For example, thisdoctors. There is a special program "Mortgage for doctors". Its goal is to make it easier for doctors to get social mortgage lending.

At the level of individual regions, free land plots and targeted social lending for private construction were organized.

In general terms, social mortgage conditions for doctors lead either to an easing of the credit burden for them, or to support in making a down payment on a mortgage.

Down payment

A potential participant in the Russian social mortgage housing program must be checked for the ability to pay the cost of housing. Actually, the scale of the loan received from the bank will depend on the volume of existing savings (initial housing contribution), on the volume of the monthly receipt of the borrower's funds. To increase the amount of a mortgage housing loan, the lender can additionally use the help of other solvent citizens (in particular, close relatives), who will then be added to the mortgage lending agreement as separate co-borrowers.

Under such conditions, social mortgages are rapidly developing in the regions.

Moscow

In Moscow in 2017, there is an active introduction of social mortgages. Moscow's conditions for a special state program are quite good. Participants in social financial lending will take out mortgages at 9.5%. But there are a number of limitations. Such a loan will be given only to those Muscovites who buy an apartment for themselves in new buildings in Moscow, included in the housingfund of the capital, in a building erected at the expense of the city. Potential borrowers must have a passport with Moscow registration (propiska), they must have a stable place of work with a constant income. In addition, they must meet certain criteria:

• be members of the state housing project "Housing for the Russian family";
• work at military-industrial complex enterprises;
• have a disability group or have a disabled child in the family.

Moscow Region

The terms of the social mortgage in the Moscow region are based on the same specific points as for the residents of Moscow. The main criteria for obtaining such a loan are noted above. But at the same time, it must be borne in mind that individual banks have their own characteristics of lending to customers, which can be found in the financial institution itself.

Tatarstan

In this region of our country, social mortgages are also very popular. The conditions of social mortgage in Tatarstan are aimed at obtaining benefits for employees of institutions that can effectively finance social mortgages.

Receipt of housing under the social program occurs in a certain order. Competitions are organized in the region, apartments are selected that can be handed over to citizens of the republic as part of the ongoing social mortgage on special conditions:

1. The need of a citizen to improve living conditions. At the same time, one family member should have at least 18 square meters. m.
2. The longest termissued social mortgage - a little over 28 years.
3. The realized interest rate is approximately 7%.
4. Need a down payment. However, if the Russian has serious reasons, then it is possible to obtain the consent of the relevant authorities not to make this contribution.
5. You can pay not only in cash. The regional program means payment with products of own production in a private household or repayment of a loan by one's own labor.
6. Part of the housing area that has not yet been paid for can be transferred to commercial lease.
7. If a childless family received a social mortgage, and after a certain period the couple had a child, then the state pays assistance in the amount of 200 thousand rubles.

Participants of the social program in Tatarstan

Under the terms of the social mortgage in Tatarstan, social mortgages can be obtained by:

• Russians working in budgetary bodies;
• employees of institutions included in social mortgage financing programs;
• Russians who need urgent support.

Need to accumulate a big rating. It is determined by the amount of a person's savings. These funds must be deposited in the housing fund account. The winner of the competition will be the citizen with the highest rating, whose application will meet all the requirements.

Of course, there is a social mortgage in Kazan. Its conditions are generally similar to the provisions of the program for Tatarstan. It should be noted that the social mortgage in Kazan for 2017 will givethe opportunity for many socially weak strata of citizens to take a loan on favorable terms.