Mortgage for construction using maternity capital - 55 tips from lawyers and lawyers

Is it possible to buy a house with land using a military mortgage?

For 11 years, our country has had the NIS (Savings Mortgage System) system. Previously, only apartments were allowed to be purchased under this program. Now you can buy a house with land and even a townhouse.

In order for a serviceman to buy a house and land under this program, the following must be done:

After signing a contract for military service, you must immediately write a report on participation in the NIS program. During three years of service, contributions will be made to this program.
After 3 years have passed, you must again write a report addressed to your unit commander with a request to issue an NIS certificate. The validity period of this certificate is six months. During this time, the serviceman must have time to choose a house and apply for a mortgage.
It is necessary to choose a bank with the best conditions. For example, Sberbank and Uralsib are suitable for this. You need to submit documents for a loan to the bank. A serviceman will not be denied a loan if:
he is not a debtor for alimony and he is not in the system of court cases for debt recovery,
he is not under investigation
the house that was chosen for purchase is fully eligible for the NIS program.
Next, a preliminary purchase and sale agreement should be signed between the buyer and seller of the property.
Then you need to open a special bank account where the money for the down payment will be transferred.
After this, the serviceman must sign an agreement on the provision of a mortgage loan by the bank.
Next, you need to send a complete list of documents to Rosvoenipoteka for examination.
Now you can fully formalize the signing of the main purchase and sale agreement.
It is important not to forget to insure your living space.
The last thing to do is to submit all documents to the registration chamber for a complete transfer of ownership.

Get complete information (step-by-step instructions) about purchasing an apartment using NIS: https://samsebefinansist.com/banki/ipoteka/voennaja/poshagovaya-instrukciya-po-oformleniyu.html You can find out about the NIS program for military personnel and the conditions for its provision here.

What is needed to combine Military Mortgage and Maternity Capital and can they be used together.

What documents are needed at the bank to apply for a loan?

Banks for the most part require a standard package of documents, but sometimes you have to collect additional papers and certificates in order to apply for a loan.

The client will need:

identification documents of the borrower and co-borrower. As a rule, this is a passport of a citizen of the Russian Federation;
marriage certificate;
birth certificates of children or children;
documentary confirmation of the right to dispose of maternity capital funds;
information about the amount of earnings and place of work;
title documents for mortgaged real estate.

You need to fill out a loan application form at the bank.

What requirements must the house meet?

A serviceman can choose a house on his own or with the help of realtors. The main thing is that it meets the criteria of the credit institution. Buying a house with a civilian mortgage is no different from buying with a military mortgage. Credit organizations will look not only at the well-being of the person who wants to take out a mortgage, but also at the condition of the living space itself.

Here are a number of rules for what condition a house should be in:

The house cannot be in disrepair.
The house should not have any encumbrances, i.e. he should not be on bail.
The house cannot be located far from the city or the nearest populated area and must have an access road so that it can be easily reached by car.
It must be a fully completed house suitable for living in.
The house must have all the necessary communications: electricity, sewerage, water, heating, gas.
There should be no unauthorized buildings on the site.
The area of the house and its layout must comply with the documents.
There should be no wooden floors in the house.
According to documents, land must have one of three presented statuses:
SNT - gardening non-profit partnership,
DNP is a dacha non-profit partnership.

Why may they refuse to provide maternity capital funds?

Applying for a loan to build a house is one of the stages of credit legal relations. It depends on the decision of the Pension Fund of the Russian Federation whether the certificate holder will receive money or not.

After receiving the package of documents, the Pension Fund of Russia is given 1 month to conduct an inspection and make a decision on the possibility of using the funds in the way chosen by the recipient of the maternity capital.

In particular, fund specialists are obliged to find out whether there are situations where the person who registered maternity capital has lost the right to dispose of it.

Such situations include:

deprivation of parental rights in relation to a minor, after whose birth the right to maternal capital arose;
committing criminal, criminally punishable acts against a child;
deprivation of the right to custody of an adopted child;
establishing the fact of misuse of funds.

Despite the length of the procedure for registering a mortgage agreement to build a house using maternity capital funds, many families prefer to spend the money provided by the state in this way.

Is it possible to buy just a plot of land?

Unfortunately, military personnel cannot purchase an empty plot of land with a mortgage, since the deal implies the fact that the serviceman and his family immediately receive their own housing. Therefore, it is necessary to apply for a mortgage immediately to purchase a house with a plot or a townhouse.

If a serviceman just wants to purchase a plot of land and use his own money to build a house there, then the best option would be to purchase a plot of land with a small house. The main thing is that it meets the standards. Since nowhere is it said what size the house should be, you can buy real estate in a ratio of 1/10, where 1 is a small house, and 10 is a large plot of land. Over time, a soldier will be able to build a large house and make it the way he wants. And the small one can simply be demolished.

What is maternity capital

Maternity capital refers to additional measures of state support for families who are raising at least 2 children.

Since the beginning of 2020, changes have been made to the legislation, and now even those parents who have only 1 child can receive money using a certificate. Moreover, the government has resumed indexation of paid amounts, and in 2020 the amount of maternity capital is 466,617 rubles.

The executive body implementing state policy in the field of financial assistance to families is the Pension Fund of the Russian Federation.

Is it possible to use a military mortgage to build a private house?

A military mortgage cannot be used to build a house, even if the serviceman already has a plot of individual housing construction with electricity and gas installed. The fact is that the expenditure of funds for construction cannot be tracked and controlled by the credit institution.

But there are several options for using a construction mortgage:

Serve for 20 years. If the length of service is more than 20 years, the funded part is transferred to the serviceman, and he himself can dispose of it. There is no longer any need to report to the law for money spent, so it can be freely spent on construction.
Take advantage. It is necessary to negotiate with the house developers so that they build a house on the serviceman’s property in accordance with his wishes and the requirements of the military mortgage. But here the serviceman must be fully aware that during construction the house legally belongs not to him, but to the company that is building it.

A military mortgage allows you to buy not only an apartment, but also a private house. This is not at all difficult to do - you just need to collect all the documents and choose a house that fits the criteria of the Savings Mortgage System. You should choose a house carefully, because this is a purchase for a long time, and possibly for life. It only takes a little effort, and the dream of a cozy country house with a plot will become a reality.

What can you spend money on?

The money under the certificate can be spent for the purposes expressly provided for in Art. 10 Federal Law No. 256 dated December 29, 2006

If recipients of maternity capital are thinking about improving their living conditions, the Law suggests taking advantage of financial assistance:

for the purchase of an apartment or other residential real estate, including those under construction;
carrying out repairs in existing housing;
obtaining a mortgage for the construction of a private house or purchasing a ready-made one.

Parents can use maternity capital to pay the down payment on a mortgage or the debt under an existing loan agreement.

The legislation of the Russian Federation also provides for other purposes for which money can be spent, but most participants in the financial assistance program prefer to solve the housing problem.

The essence of the program for preferential lending to military personnel

In 2005, the Russian government launched a housing program on preferential terms for military personnel serving under contract. After joining the ranks of the Russian Armed Forces, an employee must write an application for inclusion in the NIS program (savings and mortgage system).

The serviceman's personal account receives funds from the state budget on a monthly basis. 3 years after joining the program, the participant can apply for a mortgage to purchase housing on preferential terms. The first installment on such a loan is paid from military funds accumulated during participation in the NIS. Repayment of the targeted housing loan is made from the funds of the Ministry of Defense of the Russian Federation.

The military mortgage program is regulated by the following regulations:

No. 117 – Federal Law;
No. 102 – Federal Law;
Order of the Russian Guard No. 79.

The purchased living space is pledged to the bank and the Russian Ministry of Defense until the debt is fully repaid. If the participant leaves the service before the loan is repaid, he will have to pay the remaining debt from his own funds.

The calculation of the maximum subsidy amount allocated for the purchase of housing on a military mortgage occurs regardless of position, rank, length of service and other factors. The amount of funding is the same for all military personnel. In 2020, the NIS savings contribution is about 280,000 rubles per year. The value of the Central Life Insurance for military personnel in 2020 is 2.4 million rubles.

The time for participation in the NIS program is not limited. A serviceman can use the funds after any period of service. If savings and funds received under a preferential mortgage are not enough to purchase the chosen home, the borrower can add personal funds.

Real estate requirements

Banks put forward certain requirements for a house or other living space purchased with a military mortgage. These include:

Location in Russia.
The property is suitable for year-round use.
The building is recognized as “capital”.
The apartment is not on the list of emergency or dilapidated housing.
All communications are connected to the house: electricity, water, gas.
Location nearby other residential buildings.
Availability of a road along which you can drive to the house.
The living space is equipped with a separate kitchen and bathroom.
No encumbrances such as arrest or lien.
The building was erected no later than 1970.

Information: banks are reluctant to agree to purchase a house with a military mortgage from the borrower’s relatives. This is due to the increased likelihood of fraud on the part of the military personnel.

Is it possible to get a mortgage?

The average family that wants to have their own country house and live outside the city rarely has one and a half million rubles to spare, or even more if the area of the cottage is supposed to be large, and the only way out in this situation is a mortgage to build a house, and one question remains : “Can I take it and how to do it?”

From the moment you realize that your own money may not be enough, and saving for ten years taking into account inflation is not advisable, many hours of sitting at the computer and trips to banks begin to obtain information about obtaining a targeted loan.

There are actually only two options:

consumer loan,
mortgage.

We analyzed the banks' proposals and found out which option is preferable and has more pros than cons.