Mortgage with maternity capital: design features and application in 2021

Maternity capital is financial support provided by the state to its citizens who decide to have a second child. The list of purposes for which money can be spent is limited. The majority of citizens who received funds to purchase housing. Often, capital is used to repay an existing mortgage or consumer loans taken out to purchase an apartment.

Amount of maternal (family) capital for the second child by year:

Also, from 01/01/20, maternity capital is also issued for the birth of the first child (source), data by year:

The timing of the transfer of maternity capital when purchasing a home is an important parameter on which the time it takes to improve the living conditions of the owner of the funds depends. The period during which the money will become available for use is clearly regulated. However, before being able to use the amount allocated by the state to pay for real estate or repay a loan, a citizen will have to collect a package of documentation and perform a number of other manipulations. All this will take extra time.

To speed up the procedure for obtaining maternal capital as much as possible, experts recommend studying its nuances in advance. This will allow you to avoid errors, the elimination of which takes additional time.

Recently, the news “New about maternity capital” was published on the official website of the Pension Fund of Russia, we recommend that you read it at the link.

We’ll talk more about the amount of time during which the allocated money is transferred, the specifics of repaying a mortgage to maternal capital, and the specifics of the procedure.

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Conditions for obtaining a mortgage using maternity capital

Maternity capital can be used after the child is three years old. However, there are exceptions. If you take out a mortgage with maternity capital as a down payment or use funds to pay off an existing mortgage loan, you can use the state program immediately after the birth or adoption of a child. Maternity capital funds are transferred to the account of the lender or real estate seller after signing a loan agreement or purchase and sale agreement.

To use maternity capital funds to purchase a home, there are a number of conditions. In particular, it should not be in disrepair or subject to demolition, all family members must have Russian citizenship, and the property must be located on the territory of the Russian Federation.

Important!

In real estate purchased with maternal capital, it is necessary to allocate shares to all family members (yourself, spouse and children). If the housing was purchased with a mortgage through maternity capital, then this must be done within six months after repaying the loan. To sell such real estate, the consent of the guardianship authorities is required.

Don't check the property before purchasing

With maternity capital money, you can only buy real estate that is suitable for housing, meets sanitary standards, is not subject to demolition or reconstruction, and is located in Russia. You will not be able to purchase an apartment in a dilapidated building, an apartment or a garage using a certificate.

Katerina Skoptsova says that a common mistake some couples make is not to check the legal purity of the purchased property and the house in which it is located. Failure to comply with housing requirements may be grounds for refusal to satisfy an application for disposal of maternity capital funds.

You can check the legal cleanliness of your home with the help of a real estate agent or yourself - to do this you need to carefully study the owner’s documents: an extract from the Unified State Register of Real Estate and a registration certificate. Basic information can be obtained by indicating the address of the apartment or house on the Rosreestr website.

Read on the topic: How not to buy an apartment with debts: 4 free ways to check the seller

Mortgage with maternity capital: 2021

In 2021, maternity capital per child was indexed by 3.7%, and now its maximum amount is 639.4 thousand rubles.

Expert opinion: exactly how to improve living conditions

“As of January 1, 2021, the first child is entitled to a certificate for 483.9 thousand rubles. And if after January 1, 2021, a second baby appears, the state will pay 155.5 thousand rubles. If the right to maternity capital for the second child was not used by the family before January 1, 2021, then the payment will be slightly more than 639 thousand rubles. After registering a child with the registry office, a notification from the Pension Fund of the Russian Federation about the accrual of maternity capital should automatically appear in the personal account on the public services portal within five days.

First of all, the state allows, and citizens take the opportunity to improve the family’s living conditions at the expense of maternal capital. And the forms can be very different: purchasing housing in a new building or on the secondary market, a down payment or partial payment of a mortgage (including military and in rural areas), for equity holders - transfer to the developer’s escrow account, you can build a new house (dacha) or reconstruct existing housing,” says lawyer, founder and CEO of the vvCube consulting group Vadim Tkachenko.

Request a tax deduction from maternal capital

When purchasing a home, parents can receive a tax deduction (up to 260 thousand rubles). But in order for the Federal Tax Service to transfer the money, you need to correctly calculate the tax and fill out a declaration.

The deduction can only be obtained for the funds that the parents spent on purchases from their personal budget. Government subsidies - such as maternity capital or military certificates - are not included in the calculation of tax deductions.

If the tax return is filled out incorrectly, parents will have to fill it out again.

Read on topic: 9 mistakes when receiving tax deductions

What to do if the Pension Fund of Russia has suspended the transfer of capital to the account of the apartment seller

Sometimes the Pension Fund suspends the transfer of maternity capital money. The main reasons for refusal are non-compliance of documents and apartment with the requirements of the law.

Please review the reasons for the suspension - they will be stated in the notification letter. As a rule, these are technical errors in documents. Follow the instructions of the Pension Fund, correct the errors and resubmit the application. If you do not agree with the refusal or consider it unlawful, try to challenge it pre-trial by filing a complaint addressed to the chairman of the higher (regional) Pension Fund.

To minimize the risk of refusal by the Pension Fund, consult in advance with Pension Fund employees or experienced lawyers

Last changes

Since its launch, the Maternity Capital program has undergone some changes.
For example, the nominal value of the certificate has increased significantly and continues to increase. Unfortunately, attempts are made every year to abolish MSC.

The Maternity Capital program has been extended until December 31, 2021. Maternity capital indexation is frozen until 2021.

Our experts monitor all changes in legislation to provide you with reliable information.

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Transfers of funds if you decide to use them for one purpose or another

Maternity capital is a targeted program, which can be used only within the limits established by law.

Thus, citizens can use MK funds in the following areas:

• improving the family's living conditions;
• teaching children;
• acquisition of rehabilitation means for children duly recognized as disabled;
• formation of a pension for the expectant mother.

It’s also useful to read: How many times can you receive maternity capital?

In addition, at the expense of MK funds, low-income families can receive additional cash benefits.

The most popular way to manage funds is to improve living conditions.

In this case, MK can be disposed of after 3 years from the birth of the second child. The exception is situations when housing is purchased with borrowed funds. The same rule applies to the purchase of rehabilitation equipment for children who were previously recognized as disabled.

As a general rule , the period for consideration of the relevant application by the Pension Fund of Russia is 30 days. If the decision is positive, then the funds are paid within 10 days.

It should be noted that in this case we are talking about working days, not calendar days, so the actual period for transferring money can be up to 2 months. In addition, all payments occur through banking institutions, so additional time may be required to complete the relevant transactions.

This rule applies to all cases related to the disposal of maternity capital.

Separately, it should be noted the deadlines for applying to the Pension Fund to receive funds for the education of children. Thus, as a general rule, the exercise of this right is possible when the second child reaches the age of three years. However, it is allowed to pay for the education of not only the second, but also the first child.

A woman can also use MK funds to form a funded pension after the established three-year period from the date of birth of the child. However, this form of targeted allocation of funds is not popular due to the uncertainty of the future fate of the funded pension system in Russia.

The essence of the program

Maternity capital is a certificate that is one of the forms of financial support for young families. Support is provided from the state budget. According to the rules for using the subsidy, only those families that have had a second or subsequent child after 2007 can apply for a certificate.
To use the MSK, the certificate holder must come to the local branch of the Pension Fund (PFR) with the required package of documents. Funds are provided only for certain purposes, the list of which is limited to five points:

1. Improving family living conditions.
2. Child learning and development.
3. Increasing the funded part of mother's pension.
4. Integration of a disabled child into society.
5. Monthly payments for the 2nd child.

Important!
Using capital for any other purpose is considered a violation of the law. Strict sanctions are applied against violators, which can be learned from Federal Law-256. Download for viewing and printing: Federal Law of December 29, 2006 No. 256-FZ “On additional measures of state support for families with children”

To whom are maternity capital funds transferred?

Depending on the direction in which the order is issued, maternity capital non-cash to an individual or organization to the bank account specified in the application.

In Part 3 of Art. 7 of Law No. 256-FZ establishes the following possible options for using certificate funds:

• improvement of living conditions;
• payment for children's education;
• formation of mother's pension;
• purchase of goods and services that serve for the social adaptation of a disabled child;
• receiving a monthly payment for a second child up to 1.5 years old.

If maternity capital is used to improve housing conditions , then it is transferred:

1. In case of purchasing a residential property:
   to the bank account of an organization that sells or constructs housing;
2. to the account of an individual - the seller.
3. If a residential building is being built or reconstructed:
   to a bank account belonging to the certificate holder, if construction work is carried out on its own;
4. to the details of the contractor carrying out the construction.
5. In case of receiving compensation for construction or reconstruction - to the bank account of the certificate owner.
   Ownership of the new (expanded) premises must be obtained no earlier than January 1, 2007.
6. To the account of the credit institution that provided the loan or loan, if maternity capital is used to formalize it (pay the down payment) or repay it.

If maternity capital is used to pay for children’s education , then the funds are transferred to the current account of the organization providing educational services. In this case, you can pay with maternity capital:

• keeping a child in an institution that implements educational programs for preschool education, primary general, basic general and secondary general education;
• training in organizations of higher, secondary specialized and additional education;
• student accommodation in a dormitory.

If maternity capital is used to purchase goods and services intended for the adaptation of a disabled child in society, then the funds are transferred to the bank account of the certificate holder.

You cannot directly buy goods or pay for services with maternity capital - they compensate for the cost of already acquired means for social adaptation. Therefore, according to clause e) part 5 of Government Resolution No. 380 of April 30, 2016, it is necessary to provide the Pension Fund with a certificate of verification of the availability of purchased goods and services.

If the certificate funds are used to receive benefits for a second child under one and a half years old, then, in accordance with Part 28 of Order of the Ministry of Labor No. 889 n dated December 29, 2017, they are transferred monthly to the bank account of the certificate owner. The first payment will be received no later than the 26th day of the month following the month of application.

If maternity capital is used to form a mother’s pension, it is transferred to a state or non-state pension fund (at the woman’s choice), and is then paid as a pension.

Maternity capital is always transferred non-cash . Any cashing operations are illegal and punishable under Article 159.2. Criminal Code of the Russian Federation “Fraud in receiving payments.”