2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16
The possibility of using maternity capital funds for the purchase of housing is legally defined. All mortgage lending banks are required to accept government certificates for interest payments and/or the loan body. Read more about how the mortgage is repaid by maternity capital (the documents in the Pension Fund necessary for processing and confirming the operation will also be listed) read on.
Definition
Maternity capital (MSC) is the federal budget funds transferred to the Pension Fund of the Russian Federation for the implementation of state support measures. As confirmation of the right to receive funds, program participants are issued a state-issued certificate. You can get it at the local remote of the Pension Fund of Russia at the place of residence.
One of the ways to quickly buy a residential property is to use the mothercapital to pay off the mortgage. The documents necessary for processing the operation are transferred to the Pension Fund of Russia, which decides on the use of MSC funds.
How to get a certificate?
Before considering how the mortgage is repaid by maternity capital, the documents required for processing the operation, let's figure out how to get a MSC certificate.
Material assistance from the state can be received by a woman who was born or adopted a second and subsequent child. Fathers who have adopted a second child also fall into this category. Money can also be received by a child left without parents, upon reaching the age of majority. Prerequisites:
- Full-time education.
- Age - up to 23 years old.
You can get a certificate at the branch of the Pension Fund of Russia upon a written application from the parent. A copy of the applicant's passport, birth (adoption) certificates of all children must be attached to the document. The Pension Fund may request additional documents, in particular if the applicant is a single father. Within a month, the PRF reviews the documents and makes a decision on issuing a certificate. Notification is sent to the applicant within 5 days. In case of a positive decision, the document will indicate where and when it will be possible to obtain a certificate.
Application
MSC annuallyindexed to inflation. Funds can be used in whole or in part in several ways. One of them is the improvement of living conditions. Within the framework of this direction, funds can be directed to the purchase (construction) of premises located on the territory of the Russian Federation. For the same purposes, you can take a loan from a bank, and then arrange the repayment of the mortgage with maternity capital. The documents required for the operation will be sent further. You can dispose of the funds after 36 months after the birth or adoption of the second or each subsequent child. The loan can be issued to the mother or father.
Where to start
The following list of documents for paying off mortgage debt must be submitted to the bank:
- copy of MSC certificate.
- passport of a citizen of the Russian Federation.
- application for early repayment of a mortgage (standard bank form).
You should also order a certificate from the bank, which indicates the amount of debt, broken down into the main part of the debt and interest. Here you can also get a certificate of ownership of real estate and a contract for the purchase of an apartment. The next stage is the transfer of documents to the Pension Fund.
Repayment of a mortgage with maternity capital: documents
To repay a loan with public funds, you need to prepare and submit certificates to the FIU. A complete list of documents for repaying a mortgage with maternity capital is presented on the website of the local Pension Fund of Russia. Shortlist:
- Original certificate for state aid.
- Copy of the certificate holder's passport or other document confirming the person's identity. If the application is submitted by the spouse, then you must additionally provide a copy of the second passport and marriage certificate. If the application is submitted by a proxy, then you must additionally provide a copy of the power of attorney.
- A copy of the mortgage agreement with state registration.
- Documents confirming the possibility of receiving MSC funds by the creditor organization:
- for borrowers whose loans are refinanced by AHML - a copy of the notice of the change of the owner of the mortgage;
- for borrowers whose loans are sold to other companies - a copy of the letter from the second owner of the mortgage. Notification of change of ownership of the mortgage is sent to the borrower after the loan is refinanced by mail.
- A copy of the certificate of state registration of ownership of the premises.
- Extract from the house book, personal account.
- A notarized obligation to issue an apartment in common (with all residents) property, after the removal of the encumbrance.
- Certificate from the bank on the size of the remaining debt, including interest.
Here are the documents you need to pay off a mortgage with maternity capital.
Only bank transfer
The legislation states that it is only possible to repay a mortgage with maternity capital in a non-cash form. Documents to the Pension Fund of Russia are provided forobtaining permission for cashless transfer of funds. But there are exceptions to this rule. If the family is building a house, then even before the start of work, you can get half the amount to a bank account. For the remaining amount, you will have to contact the Pension Fund of Russia and provide a package of documents for repaying the mortgage with maternity capital. At the same time, at least six months must elapse between tranches. Additionally, you need to prepare documents confirming the cost of the work performed: contracts with contractors, acts of work performed.
How is the repayment of a mortgage by maternity capital carried out?
Documents for filling out an application for the disposal of funds are transferred to the territorial office of the Pension Fund. The employee is obliged to provide a receipt indicating the number and date of acceptance of the document, his full name and position. Within a month, a decision is made on the approval or refusal to use the MSC and is sent to the applicant in the form of a notification.
If the documents required to repay the mortgage with maternity capital are incorrect, incomplete, or the amount of funds for the MSC exceeds the balance of the debt, the offset may be denied. In the notification, the Pension Fund of Russia is obliged to indicate a reasoned reason for the refusal. This decision can be appealed in court.
What documents do you need for a bank to repay a mortgage with maternity capital? Written notification from the FIU with permission to use state support funds. If there is a partial repayment of the loan, then the borrower must submit an application to the bank indicatingselected method of changing the payment schedule:
- reducing the term of the contract while maintaining the amount of payment;
- reducing the amount of payment while maintaining the validity period of the contract.
The Russian Pension Fund is obliged to transfer funds within two months from the date of the decision. Maternity capital cannot be used to pay off fines and pen alties that arose as a result of default on loan obligations. That is, until the transfer of funds to the PFR, the borrower is obliged to repay the debt in a timely manner. After mutual settlements, a new loan repayment schedule is drawn up.
The first way to pay off debt
A part of the advance, the body of the loan or interest on it can be paid at the expense of state aid. The first option is not available in every credit institution. Previously, banks classified clients who could not pay the down payment on their own as insolvent. Today, large financial institutions make concessions and accept MSCs. It should be noted that the conditions for such loans can hardly be called favorable for borrowers. These loans carry higher interest rates for shorter terms.
Second way to repay debt
A more acceptable option is to repay the body of the loan at the expense of the MSC, since after the amount of debt is reduced, interest is charged on the balance of the debt. If the borrower plans to repay it ahead of schedule, after mutual settlements, you can reduce the amountpayment.
Third way to repay debt
It is beneficial for the bank if only the interest on the loan is repaid at the expense of the MSC. He is guaranteed to receive part of the funds due. The same scheme is beneficial to the client, provided that he does not plan early repayment of the loan. The amount of the monthly payment is reduced, but not significantly.
Features
Certificate for MSC is issued for an unlimited period. You can receive the amount at any time. If the person indicated in the document has died, the other parent, guardian or the child himself can use the amount until he reaches the age of 23.
You can use state aid funds at any time. The exception is when the owner of the certificate is going to use it to pay the down payment. In this case, it will be possible to use it after 36 months after the birth / adoption of the baby. There is one more limitation. The list of documents for repaying a mortgage with maternity capital must include a certificate from the Pension Fund confirming that state aid funds have not been used for any other purposes before.
In addition to federal programs, there are also regional programs to improve the demographic situation in the country. Some of them provide for special conditions for obtaining (registration) of property in ownership.
After repaying the loan, the purchased property must be registered as joint property with all family members.
Closing MSK
Programmaternity capital was launched back in 2007. Even then it was said that the program would not operate indefinitely. After 8 years, the first rumors appeared about the termination of the certificates. The reason for this was the fact that in 2014 the debt of the Pension Fund of Russia (through which all payments pass) amounted to about 1 trillion. rub. During the same period, 200 million rubles were paid out under MSK certificates. No final decision has been made. According to preliminary data, it will be possible to obtain a certificate until 12/31/18 inclusive, and use it in the next 10 years.
The following changes to the terms and conditions of the program are being considered for next year:
- issuing certificates only to low- or middle-income families;
- a new direction is being considered for the use of funds - the rehabilitation of children with disabilities.
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