Mortgage with state support: conditions for obtaining

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

Those who are thinking about buying a home with a mortgage loan go through many options and programs. And often stops at a mortgage with state support. What are its pros and cons, as well as the conditions for obtaining and payment terms, we will understand below.

What is a mortgage?

Purchasing your own corner is the task of every second family in Russia. In the Soviet years, it was considered the norm to live with parents, but then the mentality was different. Today, young people strive for independence and autonomous life. The problem is that such a good desire does not always end well. And all because savings are needed to buy real estate.

How to be in a situation when there is not enough money in reserve, but you want to live in your apartment or house? This is where it's time to think about government-supported mortgages. Such lending allows you to acquire square meters now, and pay for them over some time. And everything would be fine, many people have a place to live only thanks to the mortgage, but still not completely.

The essence of lending

What is the point of government-backed mortgages, and why is the country shouldering such costs? Everything is quite simple and the explanation will take several points:

• Thanks to government support, the real estate industry is on its feet, developers are reliable and willing to build.
• The quality of housing is growing, respectively, the service life and safety too.
• With the advent of government-backed mortgages, people are taking out more housing loans, which brings us back to the first point.
• The lives of those categories of the population that cannot solve the problem of housing on their own (disabled people, large families, single-parent families) are improving.

Reason for the popularity of government-backed mortgage programs

And the popularity is due to the following reasons:

1. One of the most important is lower interest rates than unsupported mortgages. Although two or three percent seems insignificant, they will save the family budget a lot.
2. Safe Deal Guaranteed. Banks with a good reputation and extensive experience in issuing mortgage loans are selected for this program, which are guaranteed to comply with all conditions.
3. Acquisition of housing is possible only through those developers who are directly involved in the state program. This is very successful, since there is no need to check the seller for honesty,the state did it a long time ago.
4. Such loans are more often approved by banks. And all due to the fact that the state divides the costs and seems to vouch for someone who needs a mortgage loan.
5. You do not need to give your money for something that is not specified in the concluded contract. If the bank's partner is the state, then all the terms of the contract are simple, understandable and have no second bottom.

All of the above reasons really confirm the correct choice of such programs. If you give preference to them, then your housing is guaranteed in the shortest possible time.

What is required from the borrower?

Government-backed mortgage program won't be approved by anyone. To be approved, the borrower must satisfy all bank requests.

The first thing to be observed is the age threshold from 18-21 years old and up to 65 years old at the time of closing the loan (a possible figure is 75 years old). The borrower must be a citizen of the Russian Federation. A continuous work experience of at least six months is also a prerequisite for participation in the government-supported mortgage program.

This type of loan is approved only if the income of an individual who wants to get a mortgage allows you to pay not only the monthly installment, but also the necessities of life. Very often, banks issue mortgage loans not for one person, but for several. Then the monthly contribution limit is calculated taking into account the income of all individuals participating in the loan. The important thing is that the maximum payment never exceeds forty-five percent of income, regardless of the total figure. Wife andhusband are also co-borrowers.

Today, no more than a dozen banks provide mortgage loans with government support.

Cons of mortgage lending

It seems that the interest rate is low, and a reliable way to get housing, but there are still disadvantages.

There are not so many banks cooperating with the state. And the choice of a suitable lender, for example, in small towns is very difficult.

The interest rate is also not so simple. These 11% come into effect only from the moment the real estate passes into ownership. During the construction period, the interest rate increases.

The mandatory down payment, which must be at least twenty percent of the mortgage amount, can be found, collected, borrowed, and so on by far not all segments of society.

Banks have an approved list of developers. By purchasing real estate from them, the borrower can count on a reduced interest rate on a mortgage loan. If an individual has chosen an apartment from a developer that is not included in this list, then it should not be a surprise that the interest rate on a mortgage loan will become higher. This is because the borrower is not eligible for the 2018 government-supported mortgage program.

Whatever the prospect of these programs may be, but the number of reservations is impressive. For example, for participation in the programs only housing in new buildings and directly sold only in one hand is considered.

Apply to whom?

Not every person cancount on relief from the state in the payment of mortgages. First of all, this kind of assistance is provided to the following social strata:

• people working in public organizations such as medical institutions, military units, educational institutions;
• those who do not have enough square meters to live (less than twelve square meters);
• people waiting in line for help to improve their housing situation;
• families with maternity capital (a family mortgage with state support is suitable for them).

What should the borrower do?

No one will get a mortgage until they meet the following bank requirements:

1. Insurance (mandatory) of life, purchased real estate and possible disability. Of course, the total payout increases, but without insurance, no bank is willing to take that risk. The only good news is that the cost of insurance is divided in the same way as mortgage payments. But insurance is not a prerequisite for state employees.
2. In the absence of a down payment and co-borrowers, it is permissible to draw up a pledge agreement for existing property.
3. Until the mortgage loan is paid off, no housing transactions can be carried out. That is, the owner cannot sell it, exchange it, rent it out. If the bank has revealed such violations, it has the right to demand full repayment of the loan before the end of its term.
4. If monthly payments are ignored and the borrower has gone from bona fide to a bad defaulter,the bank can sell the property at auction. In such a situation, the borrower loses both housing and mortgage debt, and the bank makes up for its losses from the resale of the apartment. In such a situation, mortgage refinancing with state support will come to the rescue.
5. An individual who wants to apply for a mortgage loan must have worked for at least five years. And at the time of applying for a mortgage, the borrower's work experience in one place should not be less than six months.
6. Programs such as state-supported family mortgages and others do not allow you to buy a home on the secondary market. This is due to the fact that in this case development is not stimulated and the state does not want to waste its money on unjustified mark-ups by homeowners.
7. An important condition for state support for mortgages is that only a Russian citizen can apply for it.

Mortgage terms

Government support for families with mortgages is subject to certain conditions, such as:

• percentage not higher than twelve;
• the shortest mortgage loan term is 5 years, the longest is 30 years;
• in the regions the amount is limited to three million rubles, and in the Moscow region - 8 million;
• buying a home is only possible with program partners;
• banks cooperating on such terms with the state do not charge commissions for support, maintenance and signing of a mortgage agreement;
• if the loan applicant lacks funds, two more co-borrowers are allowed;
• age limit is 21 and 65 for men and 50 for women;
• required down payment of at least twenty percent of the property price.

All this only works if the borrower can only count on participation in one 6 government-supported mortgage program 2018. What about those people who can qualify for several government programs? No way. If a person is a state employee and at the same time has maternity capital, then you will have to choose one type of mortgage program.

How to apply?

Decision on a mortgage loan made? It remains to find out what is needed for this:

• First of all, you need a passport of a citizen of the Russian Federation.
• Proof of income for the last six months.
• Taxpayer Identification Number (TIN).
• For men, a military ID is required.
• Documents for the desired property (they are taken from the direct owner, these include a technical passport, certificate of ownership, cadastral passport).
• Marriage certificate (in the case of the acquisition of real estate by one of the spouses).
• Another identity document (driving license, passport or SNILS).
• A document confirming that an individual currently has the amount for the down payment.

It is important to understand how this is an approximate list of what may be required. ATEvery bank has different requirements. The consultant will help you understand all the intricacies and requirements.

Mortgage: step by step instructions

1. First choose the right property. Layout, area, infrastructure and much more that will need to be considered. In order not to miscalculate with partner developers, you need to contact an agency specializing in mortgage lending. They usually have a list of developers included in the program.
2. Choose a lending bank. In the same mortgage agency, you can learn more about all programs and consider possible banks. When choosing, you need to pay attention to interest rates, loan term, monthly payment, down payment.
3. Collect the necessary documents for the bank.
4. Draw up a mortgage agreement. This step requires the signing of many papers, which are kept until the full repayment of the debt.
5. Insure the purchased property. For this, you do not need to make additional gestures because this operation is carried out directly in the bank. He has already concluded a contract with an insurance company and the money is deducted directly there. But no one forbids you to choose another insurance company if you wish. If the company is chosen by the borrower, then the bank must provide an insurance contract.
6. Transfer funds to developers. Funds after the approval of the loan can be transferred in different ways - credited to a debit account that is not opened in this bank, to a mortgage payment located in this bank,invoice for seller settlement.
7. Register the transaction at the registration chamber. A document certifying the ownership of the property is issued on hand. The original of this document is given to the bank, and a notarized copy is left for themselves. Such insurance protects the bank from fraudulent actions of borrowers.

Types of government programs

The state supports several types of mortgage programs and in different banks.

Mortgage with state support from "VTB 24"

All main parameters do not differ much from other banks providing such mortgage programs. The maximum approved amount reached eight million rubles. The annual interest rate did not change and was equal to 11.4%. The maximum maturity of the loan was thirty years and it was allowed to close the mortgage early.

Mortgage with government support from Sberbank

It was the very first bank that entered into cooperation with the state. The amount of the interest rate did not exceed 11.4%. The minimum down payment was twenty percent. Mortgage loans were issued for a period of one to thirty years. Programs with state support existed until 2016 and were not extended after this period.

Mortgage with state support from Rosselkhozbank

The interest rate at this bank is 11.3 percent for 30 years. The minimum loan amount is 100,000 rubles, the maximum ranges from three to eight million(depending on the region). Commissions are not provided, insurance is required. The number of co-borrowers is limited to three, including husband/wife. If the application is approved, then you can use it within three months.

Gazprombank government-supported mortgage

Interest rate - from 11.4% to 12%. In this bank, the rate is affected by the availability of insurance, the amount of the down payment and the payment period. When depositing more than half of the amount of the property price, the interest rate can be reduced to 10.9%. Families with a second child also qualify for government-supported mortgages.