What is maternity capital?
Maternal (family) capital is money allocated by the state in the Russian Federation to support families with children. It has been in effect since January 1, 2007.
I won’t go into the government’s legislative details. Let's get straight to the point.
What is the amount of support today?
From January 1, 2020, maternity capital can be obtained for the first born (or adopted) child in the amount of 466,617 rubles. At this point, it was indexed (increased) for the first time in the last 5 years - before that it was 453,026 rubles. That is, it increased by 13,591 rubles.
The maximum amount of maternity capital that can be received for two children is 616,617 rubles. If you received 466,617 for the first, for the second they will not give 616,617, as many people think, but only an additional payment of 150,000. ⠀ The same amount (616,617 rubles) is due for the third or subsequent child born (adopted) starting from January 1, 2020 years, if you have not previously taken advantage of government support.
For example, if the first two children were born before the introduction of maternity capital, that is, before January 1, 2007.
⠀ If the second child was born before 2020 and the family received a certificate for him, then, regardless of the year of use of state support, the amount will be calculated according to the old rules.
The maternity capital program will be extended until the end of 2026.
History of changes in the amount of maternity capital:
- 2007 – 250,000 rubles
- 2008 – 276,850 rubles
- 2009 – 312,162 rubles
- 2010 – 343,378 rubles
- 2011 – 365,698 rubles
- 2012 – 387,640 rubles
- 2013 – 408,960 rubles
- 2014 – 429,408 rubles
- 2015-19 – 453,026 rubles
- 2020 – 466,617 rubles for the first + 150,000 rubles for the second child
It was decided that the size of mat capital will be indexed annually from this year. Supposedly:
- in 2021, the payment for the first child will be 485,282 rubles and 641,282 for two;
- in 2022 - 504,693 and 666,933;
- in 2023 - 524,881 and 693,610, respectively.
How to buy a house after receiving the certificate
In order to use the mat capital certificate, you need to prepare a package of documents and then submit them to the pension fund, among the papers there should be:
- application for disposal of a certificate;
- certificate;
- SNILS;
- passport;
- certificate of price, purchase of the house and a notarized obligation.
What kind of house are you allowed to buy?
The conditions for receiving funds state that a house in Russia must:
- Be suitable for living all year round, accordingly have heating, running water and other communications, and the land plot is intended for individual housing construction (individual housing construction).
- Housing in disrepair cannot be purchased with capital.
Sometimes the pension fund imposes additional requirements on the premises that are purchased.
After submitting the papers, the commission makes a decision on whether the housing being sold meets the stated requirements. If the answer is yes, the money is transferred to the seller’s account no later than two months.
The final stage is the provision of a full report on the funds spent and a certificate confirming the ownership of the applicant who received the money to the pension fund service.
How to use maternity capital?
In 2020, maternity capital can be spent on:
1. Improving living conditions. This is the most popular way to use government support. What does this include?
- apartment purchase
- construction or reconstruction of an individual housing construction project (IHC) - a residential building (with or without the help of a construction organization), compensation of costs
- payment of a down payment when obtaining a loan (including a mortgage) for the purchase or construction of housing
- repayment of the principal debt or payment of interest on loans (mortgages) and loans for the purchase or construction of housing
- payment under the agreement for participation in shared construction
- payment towards payment of the entrance (or share) contribution for a participant in a housing (housing-construction or housing-savings) cooperative
You will be provided with qualified assistance in purchasing an apartment here.
Until the child reaches 3 years of age, mat capital can only be spent on paying off the mortgage or making a down payment. If the child is over 3 years old, you can pay with maternity capital directly to the seller of the apartment, indicating in the purchase and sale agreement (SPA) the terms of payment using MK.
However, not all sellers (mostly of secondary housing) agree to this type of payment, since the Pension Fund sometimes takes more than a month to transfer funds.
2. For the education of children. You can pay:
- educational services (programs)
- maintaining a child (children) or supervising (care) for a child (children) in an organization
- use of living quarters and utilities in a dormitory provided by the organization for the period of study
3. For mom’s funded pension.
Women who initially chose this option of using maternity capital funds can subsequently (before receiving a pension) use government support differently (improve living conditions, pay for their child’s education, etc.).
To do this, you will need to send a corresponding application to the territorial branch of the Pension Fund of the Russian Federation.
4. For the social adaptation of disabled children.
5. For a monthly payment upon the birth or adoption of a second child in the family.
Payments from maternity capital funds have been established since January 1, 2018 for low-income families in which a second child was born (or adopted).
Payments in the amount of the child's subsistence level in the family's region of residence are made monthly until the child reaches 3 years of age.
Algorithm of actions when buying a house with maternity capital
Buying a house using maternity capital should start with the Pension Fund, where you need to draw up documents to receive a maternity certificate. This financial document applies to those who have a second or subsequent child born after January 1, 2007. The certificate is issued by the Pension Fund at the place of residence, so you should contact them in advance by preparing a package of necessary documents, which consists of an application for receiving capital, the mother’s passport, and children’s birth certificates.
There are cases when maternity capital is registered in the name of the father of the children. This is when the father is the sole adoptive parent of two or more children, one of whom, regardless of age, was adopted from January 1, 2007 to the present; also when he is the only parent of children, including the child in connection with whom eligibility for participation in the program arose.
In addition to the above documents to receive family capital, the father additionally submits to the Pension Fund a death certificate of his wife or a court decision to deprive her of parental rights.
There are cases when maternity capital is registered in the name of the children’s guardian, that is, when the mother and father of these children have completely lost their parental rights. In this case, permission from the guardianship and trusteeship authorities will also be required.
Next, the Pension Fund reviews the package of documents within 30 days and issues a certificate, warning that the full right to use it will occur in three years, with the exception of cases when a mortgage loan is issued. (In this case, maternity capital is used immediately, at the request of its owner).
Having a maternity capital certificate in hand, its owner must be aware of all the responsibility for its correct use. What do you need to know about the rules for its use?
The state finances the family and the house is purchased not separately for the second child, but for all members of his family. At the same time, it is guaranteed that all children and all family members will be the owners of the purchased housing. Maternity capital is prohibited from being used to pay various types of fines and commissions; it cannot be used for other purposes or simply cashed out. This involves paying for the purchase and sale of a residential building by wire transfer. The seller of the house must be reliable, and the purchase and sale transaction involves specifying the entire cost of home ownership in the contract.
Before the planned transaction of purchasing a house, the Pension Fund is notified of this intention by submitting an application. A house must have a number of conditions in order to be purchased with maternal capital. It must be registered in the Russian Federation, not belong to dilapidated or dilapidated housing, and be located on a land plot registered in the prescribed manner. Third parties are involved in concluding the transaction - the Pension Fund and the guardianship and trusteeship authority.
When the Pension Fund gives the go-ahead to the deal, it will be difficult to cancel it (only in court). The purchase and sale transaction is carried out with the participation of Rosreestr, the Seller, the Buyer, and the Pension Fund. The agreement is subject to state registration, and the document on the transfer of ownership of the house to the family that bought it with maternity capital is subject to submission to the Pension Fund. The owner of maternity capital draws up a notarized obligation to register the house as common property within six months.
Will they give maternity capital to the father?
The father can also receive maternity capital, despite the fact that, usually, the certificate is issued to the mother of the born (adopted) child. After all, capital is also family capital. However, there are cases when state support is issued to the father or even to the child himself.
The father receives a certificate if:
- He is the only adoptive parent of the second child (and subsequent children) and a citizen of the Russian Federation;
- The child's mother has died or she has been deprived of parental rights.
How to apply for maternity capital?
To obtain a maternity capital certificate, you can submit an application to:
- multifunctional center for state and municipal services (MFC);
- branch of the Pension Fund of the Russian Federation at the place of registration (documents can be sent by mail);
- through the government service website and the pension fund website (electronic application).
There is no time limit for applying for a maternity capital certificate.
You can dispose of mat capital funds (in full or in part) after three years from the date of birth (adoption) of the child.
Capital can be used at any time after the birth (adoption of a child) for:
- payment of the down payment on a housing loan (loan);
- payment of principal and interest on a loan for the purchase or construction of housing;
- payment for kindergarten;
- purchase of goods and services for the social adaptation of a disabled child (or monthly payment).
If the maternity capital certificate is lost, you can get a duplicate of it at the Pension Fund branch.
When can you buy a house in the village using maternal capital?
Using maternity capital to buy a house in the village
without attracting credit funds is possible only when the youngest child in the family reaches the age of 3 years. If mortgage funds are raised, the certificate can be used earlier. But the holder of family capital will have to formalize the obligation to allocate shares to children, since the bank places an encumbrance on the premises, which can only be removed after full payment of the borrowed funds.
Buy a house in the village using maternal capital
up to 3 years is possible without using borrowed funds, this will eliminate the need to establish an encumbrance; for this opportunity, you need to contact organizations that work with maternity capital. In such organizations, a loan agreement is drawn up for the purchase of real estate, which is immediately repaid with maternity capital. As a result, the holder of maternity capital receives ownership of the house and does not need to repay the loan.
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