Is it possible and how to get a mortgage without a down payment?

Mortgage conditions without down payment

For a “mortgage without a down payment,” some banks often issue an ordinary consumer loan secured by real estate, not purchased, but existing, and the rate can easily exceed 15% per annum, comments commercial director of Seven Suns Development Anton Barulin . In addition, the value of the collateral property should not be less than the amount of the loan issued. Therefore, you will need to prove to the bank, especially if you have a secondary home, that in the worst case scenario they can actually sell it and get their money back. Confirmation is usually an appraiser's report, for which the owner - you - will have to pay.

Another guarantor of collateral can be a plot of land, a car, precious metals, or securities. But each such asset must be highly liquid and attractive to the bank in the event of its sale.

FAQ

We have already explored the topic of how to get a mortgage without a down payment. But there are also nuances. We have answered the most frequently asked questions in the short section below.

Will I need a loan if I take out a mortgage secured by real estate?

Depends on the property. If only housing that is directly purchased on credit is used as collateral, the bank will almost certainly require a loan. But, if additional collateral is attracted in the form of housing “on the side,” the chances increase many times over.

Information: the bank also looks at the condition of the collateral housing. For example, dilapidated unfinished houses located far outside the city will be considered by the organization’s management to be too illiquid and, therefore, unsuitable for encumbrance.

Is it possible to get a mortgage from a developer without a PV?

Can. There are two options available here:

Purchase and sale bypassing the bank. Either an installment plan or a mortgage is issued. The conditions are comparable to banking conditions in everything except rates and terms: they are significantly lower. Those. you will be able to save a lot, but at the same time you will have to repay the installment/loan within 3-5 years, no more;
Purchase and sale through a bank. A separate agreement is concluded with the developer, according to which the buyer independently transfers money to the seller on account of the PV within the time period specified in the agreement.

Is it possible to get a mortgage without a loan if your credit history has been damaged?

Real, but only if a lot of conditions are met:

Attracting guarantors and/or co-borrowers;
Registration of insurance policies according to the instructions of the bank;
Optional - additional loan security through real estate or vehicle collateral;
Impeccable composition of the package of documents;
Agreement to an increased interest rate on the loan.

Special requirements

Due to existing risks, banks are placing increased demands on borrowers who want to get a mortgage without a down payment. Thus, it is necessary to have a stable income, which is confirmed by a 2-NDFL certificate from the place of work. Individual entrepreneurs and business owners are unlikely to be able to get approval for such a loan, notes Andrey Kolochinsky.

Also, to obtain this mortgage, it is important to have an ideal credit history for the last 10 years. “You must have closed loans without arrears in amounts from 500 thousand rubles and there must be no loans from microfinance organizations or frequent requests for them. Close attention will also be paid to the number of loans (if any) during the period of consideration of the mortgage application and the number of dependents in the family,” says Andrey Kolpakov, executive director of the credit agency KM Center.

How to recover from the blacklist of banks?

To whom do banks give a mortgage for an apartment, and to whom do they refuse?

Electronic application submission

Many banks provide the opportunity to submit an online application for a mortgage without a down payment. This is quite convenient and allows you to save a significant amount of time.

So that the client can roughly assess his financial capabilities, the websites suggest using a calculator when calculating the amount of mortgage payments without and with a down payment.

It will be a plus if the client already has a legal relationship with the Bank; for example, Sberbank clients have access to an electronic personal account, which will allow them to bypass the registration procedure.

Registration takes place in several stages:

filling out an electronic application;
review of the information provided by the bank;
making a decision;
an invitation to the bank to conclude an agreement after searching for suitable housing;
payment to the seller of the cost of real estate;
fulfillment of obligations that cannot be circumvented.

If you have any questions, you can always contact the hotline of the selected bank.

Procedure and documents

The procedure for obtaining a mortgage without a down payment is no different from the procedure for obtaining a regular mortgage: selecting an object and bank - collecting documents - submitting an application - reviewing the application/approval - transaction and its closure. As for the necessary documents, there is also a standard package of papers (passport, certified copy of the work book, documents confirming marital status), to which are added a 2-NDFL certificate and documents for collateral housing. Most likely, you will need papers confirming ownership of this property, as well as a real estate appraisal report.

Mortgage from the developer

A mortgage loan provides an attractive opportunity to purchase a new home on very favorable terms, but there is no escape from paying interest. On a typical mortgage, you will likely be asked to put 10% of the entire home price down as a down payment. However, not every borrower is able to immediately repay such an amount of money. Therefore, there is a mortgage from the developer without a down payment, which frees you from initial payments. How and under what conditions it is possible to arrange it, read on.

"Tricky move

In the absence of savings for a down payment, some people, in order to avoid taking out a mortgage at an inflated rate, take out a consumer loan. However, the rates on it are also high, and the loan period is limited. “If the bank comes to the conclusion that the borrower will not be able to service two loans at the same time, the likelihood of being denied a mortgage is very high,” comments Andrei Kolochinsky.

The main thing about maternity capital for buying a home

Matkapital in 2020

What is the amount of the down payment on a mortgage at Sberbank?

The amount of the down payment depends on the amount received. It is calculated precisely from the amount of the mortgage that you apply for at Sberbank of the Russian Federation. However, it varies from 15 to 25 percent . It all depends directly on the loan you receive.

If you are taking out a mortgage to purchase real estate that is under construction, you will need to pay 15 percent of the full cost of the property. This percentage is the lowest of all existing ones.
If you draw up a mortgage agreement with the banking organization Sberbank for housing that has already been built, then you will be required to pay 20 percent of the cost of the apartment or house. This can be very difficult for some people.
If you have maternity capital from the state and want to use it to improve your family living conditions, you must pay the banking organization 20 percent as a down payment guaranteeing your solvency.
If you take out a military mortgage, then the down payment will be paid by the state, that is, you do not need to look for money to repay the down payment for a mortgage from Sberbank of the Russian Federation, which is 20 percent .
When taking out a mortgage to build your own private home, the down payment amount will be about 25 percent of the total amount of the loan agreement. This amount is the largest of all that are assigned by Sberbank of the Russian Federation.
If you buy real estate outside the city, the down payment will be relatively small: from five percent of the amount you borrow from a banking organization to purchase a home.

As you can see, the amount of the down payment can be varied. However, in any case, you will contribute it from your own funds. This is what is very difficult for every person.

The down payment is determined as a percentage depending on what kind of loan you apply for at Sberbank . This fact must be taken into account before choosing real estate if you know that you will be taking out a mortgage.

The most profitable option is to buy your own property, which is not located in the city. However, this is very inconvenient, since all the infrastructure is located within the city. This is also unacceptable for those who work or study in the city. However, this is the most budget-friendly method, so it’s worth considering it too.

State support programs

Another maneuver for obtaining a mortgage without a “down payment” can be called situations in which the bank’s requirements are met with the help of government support, for example, by raising funds under the “Young Family” program or maternity capital. “On the one hand, this is not a zero-payment mortgage. On the other hand, the client minimizes the amount of his own invested funds. The same thing happens with the mechanism of military mortgages. Both the initial contribution and payments are formed from funds received into the serviceman’s individual account,” says Natalia Kuznetsova, General Director of the BON TON Academy of Sciences.

Mortgage from the developer and home loan

At first glance, it may seem that the differences between a mortgage from a developer and a home loan are expressed only in interest rates and the expectation of occupancy. However, this is not the case; there are more discrepancies. Of course, the first and most obvious difference is the check-in period. For example, a mortgage from a developer without a down payment in Moscow involves waiting to move in, while after taking out a housing loan you can move in almost the next day.

A mortgage from the developer will allow you to get greater benefits from your investment due to low prices for housing under construction

Typically, developers begin selling apartments long before construction is completed, which poses certain risks for buyers. When buying an unfinished apartment, you can stumble upon scammers, but we’ll talk about that later. If you apply for a loan with a down payment for residential real estate in a bank, then your investment will be preserved and will be documented, in accordance with the law of the Russian Federation. In both cases there are certain risks, so the best option is a mortgage loan from banks that have developers as partners.

Half price

Having saved up half the cost of housing, you will be able to choose the most favorable conditions. You should pay attention to interest rates, loan terms, as well as commissions and insurance payments.

Raiffeisenbank

Citizens over 23 years of age are allowed to lend. When depositing half the amount, the client pays from 9% per annum. Housing is financed in both new buildings and old houses. This bank provides mortgages to persons of any citizenship.

Absolute

A loyalty system has been developed here, according to which you can take out a loan of up to 9 million rubles for a period of up to 25 years with a down payment of 20 percent. The larger the deposit, the lower the annual interest rate. Minimum – 10.7%. The bank considers self-employed citizens as borrowers.

Opening

When investing 50%, there is a bonus interest rate of 9.35%. Co-borrowers, a certificate of income confirmation in form 2-NDFL and the presence of several insurances are required.

Issued from 500,000 to 30,000,000 rubles (for Muscovites and residents of the Moscow region), for other cities there is a threshold of 15,000,000 rubles. Russians aged 18 to 65 can take out a loan.

UniCredit

You can buy apartments on credit in Moscow, St. Petersburg and the regions with a contribution of up to 50% of the cost. Duration – from one year to 30 years. The bank does not require Russian citizenship or registration in the region where the housing is purchased. To purchase an apartment, the first deposit may be less, but when applying for a cottage loan, the borrower is obliged to provide at least half of its cost.

Where can I get a loan if I have little savings?

The simplest option is to buy an apartment in new buildings or in a house under construction from bank partner companies. Mortgages without a down payment or with a 5% security are issued by those financial organizations that cooperate with developers.

Read more about where to get money for a down payment here.

Transcapitalbank

Provides up to 100% of the cost of housing for a period of no more than 25 years. We are considering residential real estate in the “Uspensky Quarter” of the Moscow Region and in the city of Korolev.

The interest rate will be 7% for the first seven years.

Tinkoff

This is where the “Primary Market” offer works. Apartments in a new building from among the program participants are provided without initial investment. For 25 years – up to 30 million rubles.

Housing Finance

Loans are issued with a zero initial investment for the purchase of apartments in Moscow, the Moscow region, St. Petersburg, the Leningrad region and in other cities where the bank has a presence. Term up to 20 years, interest rate from 12.99% per annum. There are a number of requirements for collateral real estate; it is allowed to attract up to four co-borrowers.

Zapsibcombank

Without investing money, or making a minimum contribution (from 5%), you can get housing in Tyumen. The bank provides loans for finished apartments or for equity participation in the construction of residential complexes “Gagarin” and “Druzhba”. At 9% per annum for 30 years.

Other options: you can get a mortgage if you have 5 percent of the cost of housing using maternity capital.

VTB 24

A mortgage is given to either spouse (with the consent of both) for a house under construction, for an apartment in a new building or on the secondary market.

The first contribution in the form of maternity capital is 5%. Interest rates depend on the duration of the loan and the value of the property (from 11.9% to 14.45% per year).

Gazprombank

Issues loans for secondary market housing, town houses, rooms and even garages. If there is maternity capital, the client’s investment can be reduced to 5% (but no more). You can receive money for a period of one to thirty years. Amount – from 500,000 rubles. From 9.25 per annum.

TKB

For an amount of 300,000 rubles or more, a loan is issued with a contribution of 5% (maternity capital) for up to 25 years. Mortgages are given for the purchase of “secondary” apartments.

How to manage 20%?

For most banks, this type of client deposit is the most convenient, and for the borrower it is feasible. If you have your own funds, a real estate buyer can count on lower monthly payments and, therefore, savings.

Sberbank

With a down payment of 15 to 20%, a mortgage is provided for finished housing for a period of up to ten years.

For example, having bought an apartment for 3 million rubles and deposited 600 thousand into the bank, the client will begin to pay 30,912 rubles monthly (the interest rate for this calculation is 9.4% per annum).

RosEvroBank

Provides up to 85% of the cost of housing. The loan rate is from 9%, the purchased property becomes collateral, it is possible to reduce the bank fee if you pay a one-time commission. Mortgage for a period of one to twenty years.

Deltacredit

A minimum of 300,000 rubles is allocated as collateral for purchased apartments with a first deposit of 15%. The mortgage is provided for a minimum of a year, a maximum of twenty-five years, with an annual interest rate of 8.75 to 10.25 (depending on the amount deposited).

Promsvyazbank

The initial 20% will give the client the opportunity to receive up to 30 million rubles for a period of 36 to 300 months. The bank's remuneration is from 9% per year, two guarantors are required.

Russian Mortgage

Fixed rate for the entire loan term - with a 20 percent contribution of about 11%. You can buy an apartment or a room in Moscow or the region for up to 30 years.

Saint Petersburg

Allocates up to 10 million rubles under the “New Building” and “Apartment” programs. The bank's remuneration is from 10% per annum. It is allowed to attract up to four co-borrowers.