Each family dreams of having their own apartment or house. However, objectively assessing their capabilities, only an insignificant part of citizens is able to simultaneously purchase finished housing or build their own. In this situation, there is nothing left to do but apply to the bank for a mortgage.
Currently, some families decide not on the usual mortgage for the purchase of finished housing, but on a loan to build a house.
What is the advantage of individual construction? Of course, in the possibility of independent planning, design development, choice of place for construction.
A loan for the construction of a house is significantly different from a mortgage obtained for the purchase of a finished house or apartment.
General terms
A loan for building a house is issued only in national currency (in rubles).
It should be noted that before you transfer the documents to a particular bank, you can use a loan calculator and calculate the probable ratio of the amount, term of the loan on the website and thus display the interest rate. In addition, the system will form an approximate schedule of payments, which will also be useful.
To apply to any credit organization, the borrower will be required to provide the following list of documents:
- application form (most banks provide the ability to fill out an application form in a form that can be downloaded from the official website);
- passport of the title borrower and all co-borrowers;
- certificates of financial condition, employment of participants in the loan agreement;
- Documents confirming that the client owns the real estate object drawn up as a pledge;
- documents that prove that the client has the necessary part of the down payment.
At its discretion, the bank may expand the list of required documents.
Requirements for a potential borrower
It is possible to obtain a loan for the construction of a private house to a client who meets all the established criteria. The requirements that any credit institution makes, including Sberbank and Russian Agricultural Bank, in relation to potential borrowers, are quite simple:
- A citizen must be 21 years old at the time of application.
- The borrower must have Russian citizenship, a document certifying this fact, as well as a mark on registration in the country.
- Continuous work experience must be at least 6 months; the client should be ready to confirm the level of income.
- Attracting from one to three loan co-borrowers who also meet the above requirements.
Construction loan from Sberbank
A loan for building a house on favorable terms can be obtained from Sberbank.
The minimum requested amount must be at least 300 thousand rubles. The maximum amount should be no more than 75 percent of the total cost of construction (or the estimated value of the property being mortgaged). The down payment should be 30 percent or more of the construction cost. For customers of Sberbank there is also a special promotion "Young Family". If the borrower is a citizen with a family in which minor children are brought up, and the age of one of the spouses has not reached 35 years, then he can apply for more loyal conditions for granting a loan. In this case, the down payment may be reduced.The spouse or spouse of the main borrower must necessarily act as a co-borrower.
The interest rate will depend on the loan term and the amount of the down payment. The more the borrower is ready to contribute his own funds for the construction of the house and the shorter the term of the loan agreement, the more profitable the interest rate will be.
The minimum interest rate at Sberbank for a construction loan is 13.5%, and the maximum is 14.5%.
From the moment of submitting an application and a full package of documents, the bank will need 2-5 days to make a decision.
A loan for building a house in Sberbank can be issued for up to 30 years.
Construction loan from Rosselkhozbank
A distinctive feature of Rosselkhozbank is the offer, using which you can get money for building a house in rural areas. Moreover, a loan can be issued both at the stage of construction planning, and at the stage of finishing and decorating. The requirements for the land on which the residential building will be erected are such that it must be the property of the borrower or be leased to it. Relevant documents confirming this right will need to be submitted to the bank. When applying for a loan, we must not forget that the loan term should not exceed the term of the lease of the land.
A loan for building a house at Rosselkhozbank can be issued for a long period of up to 30 years, however, the borrower must be prepared to pay at least 15% of the cost of the construction estimate.
After the construction of the house is completed, the owner will be able to sell or lease it, however, such operations will require the written consent of the bank. Mandatory means that the owner will receive from the sale of the property must be directed to the full repayment of the loan amount.
Rosselkhozbank may approve the issuance of a loan to clients not only for the entire construction, but also for certain works (sewage, lighting, heating, design, the preparatory phase of construction, etc.), as well as for the improvement of the territory adjacent to the housing under construction. A loan can only be granted if the borrower has a document confirming permission to conduct construction work. In order for the bank to approve the application, it is necessary to prepare an estimate of construction work and also provide it with the rest of the documents.
If the requested amount is less than 300 thousand rubles, then the client will need to additionally attract one guarantor, and if more than the specified amount, then two. The Russian Agricultural Bank provides loans for the construction of a house in the amount of 100 thousand rubles to 20 million rubles.
The decision to grant or refuse a loan at the Rosselkhozbank is made within a few business days.
Construction on the security
Housing lending is carried out only when applying for collateral. But since it is impossible to provide an unfinished construction object as collateral, it is allowed to use the following real estate options:
- land on which, in fact, will be under construction;
- any other property owned by the client.
A home loan secured is a reliable form of a loan from a bank.
Credit repayment methods
Each loan agreement prescribes the condition for the borrower to return the funds to the bank. In addition, the customer receives a payment schedule. Payments on payments are made in equal installments every month for the period specified in the contract.
Perhaps early or partially early repayment of the loan. However, this condition is best negotiated with the loan manager in advance so that the right is indicated in the content of the loan agreement.
Use of maternity capital
In most cases, it is young families with children who take a loan from a bank to build a house. Maternity capital can be directly used as a means of partial or full repayment of a loan. However, it should be borne in mind that maternity capital is not issued in cash, but is transferred to a bank account open for payments. Maternity capital can also be used as a down payment.
Special conditions for obtaining and servicing a loan
Before signing a contract with a bank, it is necessary to take into account that the receipt of funds occurs by bank transfer. The bank transfers the loan amount to a special account or card within the time period specified by the contract. Commission for granting a loan is not withdrawn. There is no charge for early repayment.
For late payment of a monthly payment, the bank sets the percentage of the penalty. Therefore, in addition to the overdue amount, it will be necessary to pay interest.
Insurance
Like any mortgage product, a construction loan requires insurance. The object of pledge is subject to insurance. But if the land plot is the guarantee, then insurance is not issued.
It follows that a loan for the construction of a house on the security of the plot will be more financially advantageous if the client does not own any other real estate.
Customer reviews
If you analyze a lot of reviews about a mortgage loan for building a house, then you can deduce both positive and negative sides.
Mortgage loans for building a house are compared by some clients with bondage or a debt hole, but at the same time they agree that in some cases this is the only option for solving a housing problem. Many borrowers speak negatively about the process of obtaining a loan at the stage of filing documents. The fact that if the bank refused to issue it, then the reasons for this are not voiced. Or, as a rule, the interest rate that the client was counting on is slightly higher. In addition, the cost of the loan increases compulsory insurance, which also does not please customers.
