The purchase of real estate for the population of Russia is the main problem associated with the increase, and without that, impressive value. Apartment prices are constantly growing, leaving no way for average citizens to collect the necessary amount and purchase their own housing. To solve the housing problem, the state, together with large banking institutions, has developed a special mortgage lending program that allows you to buy real estate on favorable terms.
State support mortgage: what does it mean?
First, let's try to understand the essence of this concept. Mortgage with state support - a relatively new loan product, developed with the aim of financial support for middle-income citizens to solve the housing problem. Most residents of the Russian Federation can not afford to buy property, due to the constantly rising property prices. This category of population has the right to obtain a loan on concessional terms, according to which the state takes over part of the borrower's obligations. According to the latest data, the mortgage with state support has been extended until the end of 2016. Therefore, if you do not yet have your own apartment or house, hurry to contact the bank.
Mortgage with state support: what does this mean for the state?
Economic growth in the country directly depends on consumer demand for real estate. The acquisition of property by citizens of the Russian Federation is the key to the successful development of both the mortgage system and the housing sector. In order to increase market sales and improve the living conditions of socially vulnerable segments of the population, the state provides financial support. It offers to issue the property on special loyal conditions.
The idea of state financing of mortgage loans was supported by most of the country's banking institutions. Large institutions with a high level of stability and rating have developed social lending programs available for low-income families and middle strata of the population. Mortgage with state support, the conditions of which imply reduced interest rates, has become affordable for many families. Previously, they could not afford to buy their own housing.
Who is eligible for government benefits?
Mortgage with state support is issued on special conditions. They suggest the issuance of a loan to a certain category of the population:
- socially vulnerable citizens;
- low-income families;
- military personnel;
- young families;
- employees of state organizations (teachers, physicians, young scientists);
- families where one member has less than 18 square meters. m. of living space.
When applying for a mortgage with state support, it is worth considering the fact that the purchase of housing is subject to certain conditions, according to which each family member has the right to 18 square meters. m. Planning to significantly expand housing, you need to rely on your own funds.
Loan Financing Options
State assistance in financing mortgages is determined by one of the options:
- Interest rate reduction. The interest subsidy scheme is based on the state reimbursing the bank for the amount of profit loss associated with a reduced interest rate on social mortgages. Regional authorities compensate for the difference resulting from the reduction of overpayments.
- Subsidizing part of the cost. This implies the provision by the state of financial assistance to persons applying for a social mortgage.The funds can be used to make a down payment or to pay part of the loan debt. The amount of the subsidy is from 35 to 40% of the total value of the property.
- Preferential housing. This option involves the purchase of apartments in new buildings, the construction of which is financed by the state. This type of social housing is issued at a reduced price, which reduces the down payment and monthly loan payments.
Getting a loan
Mortgage with state support is issued simply. Large banking institutions participate in preferential lending programs. Therefore, they offer to take a loan for the purchase of housing on the basis of a conventional mortgage. This is very beneficial for ordinary citizens.
Sberbank, a mortgage with state support which is issued on several concessional terms at once, offers a loan program that assumes a 30-year maturity and an initial payment of 20% of the cost of housing. The loan is issued in rubles. The maximum amount varies depending on the territorial location of the property and ranges from 3 to 8 million rubles.
The main condition for budget financing is the acquisition of property in the primary market. Housing owned by individuals does not fall under the soft loan program. A mortgage with state support is issued on the security of property. This may be acquired housing or other property owned by the borrower as property. When providing other real estate as collateral, making a down payment is not required.
General requirements for borrowers
Depending on the bank providing the mortgage, the requirements for borrowers may vary slightly. But basically it should be a citizen of the Russian Federation, having permanent registration in one of the subjects of the country. The age of the potential homeowner must be within the framework of 21 years to 65 years (at the time of repayment of the loan debt). It is also necessary to have a permanent job and a stable income, allowing you to pay a mortgage. Work experience must be at least 1 year in the last 5 years and at least 6 months at the last place of work.
Sberbank, a mortgage with state support which is issued up to 75 years, offers customers to attract partner borrowers with a maximum of three people. Among them, one of the spouses must act without fail. By determining their total income, the maximum amount of credit provided is calculated. Many banks carefully check the credit history of the borrower. The chances of getting money increase significantly with the repeated use of credit products and timely repayment of debt.
Basic documents for registration
Mortgage with state support is granted for a rather long period, which entails certain risks for banks and requires a more thorough check of the borrower's solvency.
The main package of documents for registering a social mortgage includes:
- application (on the bank letterhead);
- passport of the borrower and guarantors (copies of all pages);
- income statement in the form of 2-personal income tax and tax return;
- a copy of the work book certified by a notary;
- copy of the employment contract.
When applying for a loan, the bank is entitled to require an additional package of documents from the client. It includes marriage and birth certificates of the child (ren), diploma, driver’s license, military ID and bank statement.
