Repaying a mortgage with maternal capital: documents and description of the procedure

Definition

Maternity capital (MCC) is federal budget funds transferred to the Pension Fund 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 office of the Russian Pension Fund at your place of residence.

One of the ways to quickly purchase residential property is to use maternity capital to pay off the mortgage. The documents necessary to complete the transaction are transferred to the Pension Fund of Russia, which makes a decision regarding the use of MSK funds.

Reasons for refusal

Despite the fact that using maternity capital to pay off a mortgage is a common practice, sometimes people who want to carry out this procedure may be refused. True, the range of grounds is significantly limited, but you can try, although the chances of success are very small. So, here are a few situations that can become a serious reason for refusing to accept maternity capital as repayment of a loan debt to pay for housing:

If the applicant has attached an incomplete list of documents or the papers contain inaccurate information;
If an error was made during the application process;
If parents have lost parental rights to a child. But this applies if we are talking about a child, whose birth became the reason for registering maternity capital;
If the applicant has committed a crime against a child, he cannot use maternity capital;
If the guardian has limited rights to use funds that are issued as maternity capital. Restrictions were indicated through the guardianship and trusteeship authorities. The money will be frozen until the restriction is lifted.

These are the only legitimate reasons when parents or guardians can be denied maternity capital. Some of them, such as errors in documents, can be corrected. If permission was not obtained, and other arguments were chosen as the reason for refusal, these actions will be considered a violation of the law.

How to get a certificate?

Before considering how to repay a mortgage with maternity capital and the documents required to complete the operation, let’s figure out how to obtain an MSK certificate.

A woman who has given birth to or adopted a second or subsequent child can receive financial assistance from the state. This category also includes fathers who adopted a second child. A child left without parents can also receive money upon reaching adulthood. Required conditions:

Full-time education.
Age – up to 23 years.

You can obtain a certificate at a branch of the Russian Pension Fund upon a written application from a parent. A copy of the applicant’s passport and birth (adoption) certificates of all children must be attached to the document. The pension fund may require additional documents, in particular if the applicant is a single father. Within a month, the PRF reviews the documents and makes a decision to issue a certificate. Notification is sent to the applicant within 5 days. If the decision is positive, the document will indicate where and when it will be possible to obtain the certificate.

Maternal capital

Maternity capital is a one-time cash payment that is allocated from the federal treasury to help Russian families as part of a government program.

A certificate for receiving assistance from the state is issued once after the birth of the second, third and subsequent children .

with adopted children are also eligible for federal support .

The government program to support motherhood has been operating in our country for more than 10 years , and during its existence it has undergone numerous modifications .

From the beginning of the action to the present, the amount of assistance to mothers has almost doubled as a result of indexing .

The possibilities for disposing of state aid have also expanded. During this period, 8 million domestic families received a family certificate and more than half of them have already fully managed the funds in the account.

Currently, financial support from the state amounts to 453 thousand rubles and is the same for everyone.

This money cannot be used at your own discretion. They are allowed to be spent only for certain purposes provided for by the legislator.

To avoid unjustified waste, payments under the certificate are strictly controlled by the Pension Fund of the Russian Federation . You can use the money only after 3 years , with the exception of certain cases.

With the help of funds allocated by the state, it is allowed to:

Pay for the education of one or more children. An educational institution can be either public or private. It is also possible to pay for the child’s accommodation in a dormitory at the place of study;
Provide mother's pension in the future. When choosing this method of using the certificate, a woman can later (before retirement) change her decision and use the money in other areas;
Improve or expand living conditions . With the help of government support, you can make repairs or purchase a larger property. In this direction there is a basic rule - the home must be located on the territory of the Russian Federation;
Buy or build housing . The program provides for the possibility of equity participation in the construction of real estate;
Pay the down payment , interest, or principal on a mortgage or home loan. When choosing this method, you do not need to wait for 3 years;
Compensate for goods or services necessary for the treatment and adaptation of disabled children . You can use money in this direction immediately after issuing the certificate.

How to get a mortgage using maternity capital? Read here.

Application

The MSC is annually indexed to inflation. Funds can be used in whole or in part in several ways. One of them is improving living conditions. Within this direction, funds can be used for the purchase (construction) of premises located on the territory of the Russian Federation. For the same purposes, you can take out a loan from a bank, and then arrange to repay the mortgage with maternity capital. The documents necessary for the operation will be sent further. The funds can be used 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 begin

The following list of documents to repay mortgage debt must be submitted to the bank:

a copy of the MSK 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 principal and interest. Here you can also obtain a certificate of ownership of the property and an apartment purchase agreement. The next stage is the transfer of documents to the Pension Fund.

Repaying a mortgage with maternity capital: documents

To repay a loan with government funds, you need to prepare and submit certificates to the Pension Fund. A complete list of documents for repaying a mortgage with maternity capital is presented on the website of the local Pension Fund of Russia. Brief list:

Original certificate for receiving state aid.
A copy of the certificate holder’s passport or other document confirming the person’s identity. If the application is submitted by a spouse, then you must additionally provide a copy of your second passport and marriage certificate. If the application is submitted by a proxy, 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 were refinanced by AHML - a copy of the notice of change of owner of the mortgage;
For borrowers whose loans were sold to other companies, a copy of the letter from the second owner of the mortgage. Notice of the change in mortgage ownership is mailed to the borrower after the loan is refinanced.

A copy of the state registration certificate of ownership of the premises.
Extract from the house register, personal account.
An obligation certified by a notary to register the apartment as a common property (with all residents) after the encumbrance is removed.
A certificate from the bank about the amount of the debt balance including interest.

Here are the documents needed to pay off a mortgage with maternity capital.

What documents are needed

In order to repay a loan from a bank with the amount received through maternity capital, you first need to collect documentation. There is a package of papers that must be submitted, so every piece of paper is needed here.

So, the main list of documents for repaying a mortgage with maternity capital includes the following documents:

A personal certificate that is issued to receive funds called maternity capital;
Certificate of pension insurance;
Person's passport;
Documents confirming registration at the place of residence.

To the bank

As for additional documentation, depending on where exactly the person plans to bring the documents, the final list will differ. Let's start with the most obvious - going to the bank. So, in this case, a person applying for early repayment of a mortgage must bring:

Russian passport as confirmation of a person’s identity;
Maternity capital certificate;
Application for mortgage repayment. But you just need to indicate that the debt is repaid ahead of schedule and at the expense of financial assistance received after the birth of the child.

When the documents have been submitted, bank employees are required to issue a special certificate. This document indicates all the information specified in the mortgage agreement, namely that the certificate contains the amount of payments, what remains to be done by the borrower, as well as the interest that the bank expects. In addition, the bank issues title documents for housing that has been purchased. With these papers, the newly-minted owner applies to the Pension Fund.

To the Pension Fund

The second option is to go to the Pension Fund. This is necessary to obtain consent for maternity capital to be transferred as payment for the mortgage. In this case, too, one cannot do without a prepared documentary base. So, you need to bring the following documents to the Pension Fund to pay off the mortgage with maternity capital:

Person's passport;
Certificate for maternal capital;
Indicate the bank account details where the amount received for the birth of the child should be transferred. The payment amount is 20 thousand rubles. The payment will be made within two months;
You must obtain documents from the bank stating that the applicant has debt obligations (mortgage);
Contract for the sale and purchase of real estate with a mortgage;
An application stating to transfer money from maternity capital as payment for a mortgage;
The obligation of the borrower that the purchased property will be registered as shared ownership. The fact is that property purchased with maternal capital is the property of the entire family, including minor children.

But the procedure does not end with finding out what documents are needed for the Pension Fund.

Cashless only

The legislation stipulates that it is only possible to repay a mortgage with maternity capital in a non-cash form. Documents are submitted to the Russian Pension Fund to obtain permission for a non-cash transfer of funds. But there are exceptions to this rule. If a family is building a house, then even before starting work, you can receive half the amount into a bank account. For the remaining amount, you will have to contact the Russian Pension Fund and provide a package of documents to pay off the mortgage with maternity capital. In this case, at least six months must pass between tranches. Additionally, you need to prepare documents confirming the cost of the work performed: contracts with contractors, certificates of completed work.

Registered in the name of the husband

Maternity capital funds can be used to pay off the mortgage, and it does not matter who, according to the documents, is the main borrower. If the marriage is officially registered, then there are usually no difficulties with using the balance.

In this case, the following circumstances do not matter:

moment of receipt of the certificate;
balance of maternity capital in the account;
date of legalization of relations and registration of a mortgage.

Statistics show that in most cases the decision to use a subsidy is made in a joint marriage after the birth of a second child and the need to resolve the housing issue. If the certificate was received before marriage, and the relationship and mortgage were formalized later, then the funds from the family certificate can also be used to repay the loan. At the same time, the owner cannot subsequently challenge such a decision and has no right to demand compensation from the spouse.

How is a mortgage repaid with maternity capital?

Documents for completing an application for disposal of funds are transferred to the territorial branch of the Pension Fund. The employee is required 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 approval or refusal to use 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 drawn up incorrectly, are provided incompletely, or the amount of funds under the MSK exceeds the balance of the debt, offset may be refused. In the notification, the Russian Pension Fund is obliged to indicate the reasoned reason for the refusal. This decision can be appealed in court.

What documents does the bank need to pay off a mortgage with maternity capital? Written notification from the Pension Fund of the Russian Federation with permission to use state support funds. If there is a partial repayment of the loan, the borrower must provide the bank with an application indicating the chosen method of changing the payment schedule:

reducing the duration of the contract while maintaining the amount of payment;
reducing the payment amount while maintaining the contract period.

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 penalties that arose as a result of failure to fulfill loan obligations. That is, until the funds are transferred to the Pension Fund of the Russian Federation, the borrower is obliged to repay the debt in a timely manner. After mutual settlements, a new loan repayment schedule is drawn up.

Deadlines for transferring maternity capital money to repay the mortgage

The deadlines are not clearly established in Russian law.
The Russian Pension Fund has the right to consider the application within a month. If any legal nuances arise, this period may drag on for up to six months. Authorized employees have the right to check the “purity” of the transaction, and, if necessary, extend the deadline for approval or refusal of registration.

The deal structure also takes into account the circumstances under which the buyer is allowed to assume control of the asset. This often refers to the payment terms that are specified in the contract.

The structure of the transaction also often includes specific rights of the seller in the event that the buyer does not fulfill the obligations assumed in the contract.

This means that if the structure of the deal requires the transfer of payments at specified intervals over a period of time, and the buyer fails to offer those payments, the owner may be able to declare the agreement void and take steps to recover the asset.

At the same time, the terms of the agreement may provide the buyer with some protection, such as a grace period to pay overdue payments before the transaction is declared void.

After full approval, the transaction will be recognized as legal, and the money will be transferred to the seller. In case of problematic situations, it is possible to resolve the dispute only through the court (consideration of the claim within 30 days minimum).

Funds must be transferred in full, not partially. This is prohibited by law.

If the mother of a child or several children previously submitted an application to use part of the money, then the notification from the Pension Fund of the Russian Federation must indicate such information.

According to the law, only the Pension Fund of the Russian Federation has the right to consider these applications and allocate money for the purchase of housing.

The first way to pay off debt

Using state aid funds, you can pay part of the advance, the principal of the loan, or the interest on it. The first option is not available at every credit institution. Previously, banks classified clients who could not pay the down payment on their own as insolvent. Today, large financial institutions are making concessions and accepting MSK. It should be noted that the conditions for such loans can hardly be called favorable for borrowers. Such loans provide higher interest rates for a short loan period.

Peculiarities

The MSK certificate is issued for an unlimited period. You can receive the amount at any time. If the person indicated in the document has died, the second parent, guardian or the child himself can use the amount until he reaches 23 years of age.

You can use government assistance funds at any time. The exception is when the owner of the certificate intends to use it to pay the down payment. In this case, it will be possible to use it 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 previously state aid funds were not used for any other purposes.

In addition to federal ones, 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.

After repaying the loan, the purchased property must be registered as joint property with all family members.

Citizens' rights

Russian legislation allows persons who have had a second child to use the financial assistance received from the state to expand their home. The goal may be not only the purchase of an apartment, but also the construction of a house. Also a very advantageous offer is the ability to use the money to pay off your home mortgage.

You can use financial support from the state:

as a down payment;
like paying off mortgage interest.

The first option is very beneficial for citizens, since not everyone has the funds to make an initial mortgage payment. The down payment, in turn, is one of the main criteria when applying for a mortgage loan. Therefore, many citizens of the country who have the appropriate certificate take advantage of the opportunity to use capital in the first stages.

The larger the down payment on the apartment, the lower the loan amount. Accordingly, the overpayment on the loan and its interest will be much less.

The second option, when funds are used to pay off interest on the loan, is very profitable for the banking institution. But when a person does not plan to repay the loan early, paying interest in advance will help reduce the monthly payment.

Before collecting a list of documents for obtaining a mortgage loan using maternity capital, you need to find out the conditions and programs offered by various banks and choose the most profitable one. Some financial institutions do not offer to use these funds, for example, as payment of interest or others. Therefore, the choice of bank must be made carefully, since payments will take several years.

Closing MSC

The maternity capital program 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 Russian Pension Fund (through which all payments are made) 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 December 31, 2018 inclusive, and to use it in the next 10 years.

The following changes to the terms of the program are being considered for next year:

issuing certificates only to families with low or medium incomes;
A new direction for the use of funds is being considered - the rehabilitation of children with disabilities.

What documents are required for the Pension Fund?

Today, the Pension Fund acts as a controlling organization, whose permission is required to use certificate funds.

To obtain a document, a citizen must personally apply and provide the following documents:

completed application form;
the applicant's identity card;
children's birth certificates;
adoption document (if available).

If documents are submitted by an authorized person, then it is additionally required to confirm the rights to such actions with a power of attorney. The fullness of the package directly depends on life circumstances. If the initiative comes from legal guardians, then it is necessary to additionally provide a death certificate of the parents or a document depriving them of their rights to raise a child.

Today, Russian citizens can use the service of issuing a certificate in electronic form. To do this, you need to submit an application using your personal account and the service of the Pension Fund and State Services portal. Next, at the appointed time, you will need to visit the division of the authorized body to submit original documents. The electronic certificate will be sent to the applicant’s personal account, and if desired, it can be viewed or printed.