It will not be difficult for a single mother to get a mortgage loan on condition of good earnings and a positive credit history. In addition, a woman has a chance to take advantage of the state subsidy program, having received the status of in need of better housing conditions. In some cases, banks provide special targeted lending conditions at reduced interest rates. How to take a mortgage for a single mother and what are the features of the design of such a loan will be discussed in this article.
Status Confirmation
To get a chance on preferential credit conditions, the borrower must have an officially confirmed status of a single mother. According to Russian law, a woman who has given birth to a child out of wedlock or after 300 days after its dissolution is recognized as such.
The first document confirming the status of a single mother is the birth certificate of the child, in which the father has a dash in the column or information about the second parent is written from the words of the woman herself. Then, the registry office is issued a certificate in the form of No. 25. This document indicates the date of birth of the child, his nationality and citizenship, the place where the baby is registered, and information about the father.
These two papers, confirming that the woman is truly a single mother, must be transferred to the social protection authorities. After they are considered, the appropriate status is assigned officially.
Can I count on approval of the application?
Whether a single mother is given a mortgage is an issue that is relevant for many women. Indeed, most often the reason for the fear of refusal of approval is an insufficient level of wages. Typically, such women have to raise their children alone. But even in this case, there is no need to despair and it is worth trying to collect documents and apply.
In addition, this category of persons has the right to rely on state assistance, which allows you to get your own housing on concessional lending terms. However, you should familiarize yourself with the subsidy requirements stipulated by state programs in advance.
In which case will they approve the application?
Without problems, a single mother can arrange an apartment on a mortgage with a high and stable income. It should cover the needs of the family and ensure the fulfillment of debt obligations at the same time. If the salary and benefits received provide a sufficient level of income, then the bank is more likely to approve a mortgage.
From the point of view of a credit institution, single mothers do not have special advantages over other borrowers. The main criterion for approving a loan is the level of income. Therefore, the answer to the question of whether a single mother can take a mortgage most often depends not on the status of a potential client, but on her financial condition.
Being in her circumstances, she can only take advantage of the subsidies laid down to her. If conditions permit, then there is a chance to benefit from programs to reduce interest rates on mortgages.
You can increase the chances of approval of the application due to the increased down payment. For these purposes, you can use maternity capital. Mortgages for single mothers can be provided under a targeted program with a reduced rate.
Judging by the reviews of women, it was maternal capital as an initial contribution that became the main criterion that helped them get a loan to buy an apartment.
Mortgage Subsidies
Subsidies are granted even without the status of a single mother, if the woman is not more than 35 years old. Otherwise, it will not work.
The subsidy is also not provided to single mothers who own property with an area of more than 42 square meters. meters. Also, she does not rely on women who are not officially employed.
You should also check the site of the regional administration for subsidy programs. If any, then they can be summarized with federal resources that provide support in solving such problems.
To receive a subsidy, you need to contact the administration. There, a single mother will be put in a queue for a subsidy. A representative of the administration will ask you to submit a specific package of documents that will be considered by the commission. It is this body that decides whether to provide a subsidy or not.
Borrower Requirements
For a bank to approve a mortgage for a single mother, it must meet the following requirements:
- have Russian citizenship;
- the age of the borrower is from 21 to 35 years, if she claims to use the program "Young Family", and up to 75 years for registration of a family mortgage;
- official salary - it should be enough to cover the costs of the loan and serve the needs of the family;
- lack of negative credit history;
- At the current place of work, the length of service should be more than 6 months, and the total length of service should be more than 1.5 years.
Mortgages
Having solved the issue with the subsidy, it is worth applying to the bank for a mortgage. It should be borne in mind that a credit institution gives only 85% of the cost of an apartment. However, some banks issue a mortgage for single mothers under a preferential program, which provides for the provision of an amount of 90% of the cost, as evidenced by reviews of existing borrowers.
In all other respects, the financial organization is guided by the general procedure for providing credit. It takes into account the official income of the borrower, the number of children who are dependent on her. The bank also takes into account the case if a woman lives with her parents or if there is a disabled relative in care. In such circumstances, the bank may refuse to grant a mortgage.
To increase the chances of approving a mortgage, it is allowed to attract guarantors. Working relatives can act as co-borrowers. This will increase the amount of funds provided. Consequently, it will be possible to buy a more expensive and spacious apartment.
If you have a car or apartment, they can be used as collateral for the bank. As such housing can be the property of the co-borrowing parents.
Also, under the program “A Young Family - Affordable Housing”, single mothers are provided with subsidies for regular payments. However, before receiving them, it will be necessary to confirm that the applicant's family needs an improvement in their living conditions.
The Young Family program provides for the possibility of paying a mortgage to single-parent families. Not just single mothers. In addition, the mortgage rate is reduced by 0.5%.
To participate in this project, you need to get a certificate from social security that the family needs an improvement in housing conditions. The decision to include a woman in the program is made by local authorities. Guided by this decision, banks include a mortgage for a single mother in a subsidy project.
On a general basis, a woman can use the following target programs:
- Subsidies and a reduced rate of up to 6% in the event of the birth of a second or third child after January 2018.
- Maternity loan from 8.9%.
Ways to lower interest rates
In addition to standard methods of reducing interest rates, you can save money by using additional offers. For example, when registering a mortgage through the DomKlik service, a client will receive a rate reduction of 0.1%. If the apartment for purchase was found on this service, the amount will decrease by another 0.3%.When applying for a mortgage with life insurance, it is reduced by 1%.
It is also insignificant, but still the rate will be reduced by 0.1% when applying for a mortgage for a single mother in Sberbank.
Total, for all programs to reduce interest and special offers, the rate will be 4-6.9%.
How to get a single mother mortgage?
The process itself does not differ from the execution of other contracts for the provision of funds for the purchase of an apartment and is subject to general conditions. The procedure for obtaining a mortgage consists of the following steps:
- Collection by a potential borrower of all necessary documents for applying to the bank.
- Filing an application with filling in the necessary data. You can do this via the Internet on the official website or by visiting the office of a financial institution in person.
- Submission to the bank of the collected package of necessary certificates.
- Waiting for consideration of the submitted application and submitted documents of the Security Council.
- In case of a positive decision, making an initial payment (if it is provided for by the contract).
- Registration of an object as collateral with the relevant authority.
- The implementation of the transfer of funds.
What documents do you need to submit?
The answer to the question of whether a single mother can take a mortgage, largely depends on the package of documents that she can submit to a financial organization. Most often, the general list includes:
- ID document.
- Birth certificate of the child / children.
- Documents for real estate.
- Help 2NDFL.
- Certificate for the provision of benefits.
With these documents in her hands, a single mother should visit a bank branch and fill out an application. Having analyzed the income level of the client and her credit history, they determine the loan repayment period and monthly payment.
At the time of signing the contract, you need to make sure that all applicable options are added to it. Benefits should also be prescribed in a mortgage agreement for a single mother.
Cons of social programs by customer reviews
Large lines for subsidies are the main minus. You can wait for payments under the program for several years. Because of this, a disadvantageous situation arises if you need to purchase a house urgently. If a woman has recently given birth to a child and lives with her parents in a two-room apartment, the issue of acquiring new housing for her will not be quickly resolved.
The most inconvenient thing is that many programs provide for the use of subsidies only for buying apartments in new buildings. In this situation, the worst thing is for residents of small cities in which there is no active construction of residential buildings. It turns out that a single mother will have to either move to a big city to take advantage of all the benefits, or use the minimum number of available programs to buy a finished apartment. In this case, she will have to pay a higher percentage on the mortgage and forget about the subsidy for the down payment. And moving from your hometown can result in expenses that are much larger than what a woman would incur when buying an apartment.
Conclusion
As the practice of many women shows, it is quite possible to get a mortgage for a single mother with one child. And even a small income will not be an obstacle to obtaining a loan. The main thing is to provide other guarantees for the bank, for example, collateral, guarantors, co-borrowers with the necessary income level or an increased down payment.
