Preferential mortgage programs
The state finances several preferential mortgage programs for different categories of borrowers. In this article we will talk about the three most popular programs that operate in 2021-2022.
Mortgage at 7%
Available to : any citizens of the Russian Federation who want to buy an apartment in a new building. Rate : up to 7% per annum for the entire loan term. It may be increased if the borrower does not insure life, health and real estate.
Validity : until July 1, 2022. In which regions it is valid : throughout the country. Maximum loan amount : 3 million rubles. Can it be used for refinancing : no. Which banks issue : all large and most small banks, for example, Sberbank, VTB, Alfa Bank and Sovcombank.
Rural mortgage
Available to : any citizens of the Russian Federation who want to buy real estate in rural areas. Rate : from 0.1 to 3% per annum Validity period : until 2025. In which regions is it valid : throughout the country, except for the cities and municipalities of St. Petersburg, Moscow and the Moscow region. But only in rural areas, for example, in a workers’ village, urban settlement or small town, up to 30 thousand people. Maximum loan amount : 3 million rubles. For the Far East, Leningrad Region and Yamalo-Nenets Autonomous Okrug, the amount is higher - 5 million rubles. Can it be used for refinancing : no. Features : Can only be obtained once in a lifetime. Which banks issue : nine banks participate in the program, for example, Rosselkhozbank, Sberbank, CB Center-Invest and Ak Bars Bank.
Where can I get it?
Where can I get a subsidy for the purchase of housing? The payment subsidy is transferred to the applicant’s personal account at the bank serving him.
Where can I apply for a housing subsidy?
The amount of money for the purchase of housing is allocated to the applicant in one of the banks that participate in the state program “Housing” .
In order to use them, you need to open an account with one of these banking institutions.
After receiving the certificate, citizens who have applied for the subsidy have six months to select and purchase a home.
If they don’t make it in time, they’ll have to re-register everything again.
It should be taken into account that housing can be purchased in any area of the region, even the country, where you like it.
State support for young families
The following are considered young:
- Two-parent families with or without children, in which one of the spouses is under 35 years of age.
- Single-parent families, such as mother and child families, in which the parent is under 35 years of age.
There are several government support programs for such families: some operate throughout the country, others only in certain regions. We recommend starting your search for a suitable program from the websites of your local administration. If there are no suitable programs in your region, look into federal ones.
Departmental target program
The essence of the support : a free payment in the amount of 30-35% of the estimated cost of the apartment. Who can receive : a young family that is recognized as needy. Also, before receiving the payment, you need to prove that you have the funds to purchase the chosen home or you can take out a mortgage. Features : it doesn’t matter how much the apartment you want to buy costs: the payment amount is calculated according to the standards. First, they find out how many square meters the family is entitled to. So, two spouses or a parent with a child are entitled to 42 sq.m., and families of three or more people are entitled to 18 sq.m. m for each. Afterwards, the number of square meters required is multiplied by the standard cost of 1 sq. m in your region.
For example, the standard cost of one square meter in Moscow is 115,151 rubles. If there are two parents and two children in a family, they are entitled to 72 square meters. m. Then the standard cost of the housing they are entitled to is 8,290,872 rubles. And the amount of social benefits is 35% of this amount - 2,901,805 rubles.
Maternal capital
The essence of support : targeted payment at the birth or adoption of a child. 483 thousand rubles for the first child and 639 thousand rubles for the second and subsequent ones. Such a payment for the second and subsequent child will only be provided if you did not receive maternity capital for the first.
Who can receive : the father or mother of the child, as well as an orphan child under 18 years old who was born after 2007.
Features : Matkapital can be used to purchase an apartment or house, as well as to build a house. Funds cannot be spent on purchasing housing abroad, dilapidated or dilapidated housing, as well as non-residential premises, including apartments. You also cannot buy a share in an apartment or house. An exception is if this is a separate room or share in existing housing.
After the purchase, you need to allocate shares for each family member who is indicated in the certificate for maternal capital.
Young families can also take advantage of other programs, for example, mortgage restructuring, which we will discuss below.
What are subsidies for improving living conditions?
Housing subsidies are assistance to citizens in the form of cash payments from local or federal budget funds. It is characterized by two important components:
- certainly intended use (in this case, the purchase of housing);
- limited period of validity.
At the same time, a subsidy for an apartment is a co-financing option and is irrevocable (free of charge). Essentially, this is a certificate or certificate for a certain amount with a limited validity period, which cannot be cashed out and can only be spent on the purchase of an apartment or house, the area of which does not exceed social norms, or on their construction.
It is allowed to use the certificate as a down payment when applying for a mortgage, to repay a previously taken out housing loan or share contributions when joining a housing construction cooperative. In some cases, it is allowed to spend these funds not on the purchase of new housing, but on expanding the area of an existing one that does not comply with current social standards, or on repair and construction work aimed at improving existing housing conditions.
The housing subsidy does not cover the full cost of housing upon purchase, therefore, persons applying for it must meet one of the options by the time they receive the certificate:
- have the funds to pay off the remaining amount;
- own housing that is planned to be sold by the time the transaction is concluded;
- enter into a mortgage agreement providing for the payment of the missing amount over the next few years.
Those who previously received a subsidy and used the certificate for its intended purpose will not be issued again.
Currently, the legislation sets different time limits for using the subsidy for its intended purpose, depending on the basis for receiving the subsidy. This could be 3, 6 months or another period. Those who were unable for some reason to use the certificate within the established period may apply to receive it again, but on a first-come, first-served basis.
It is important to remember that subsidies for improving housing conditions can only be used to purchase housing that is legally clean, that is, not under arrest or mortgage and not burdened with the rights of other persons. When investing these funds in construction, local governments may limit the possibility of using a subsidy to the degree of readiness of the facility. For example, in Moscow and the Moscow region it is impossible to use state assistance when paying the premium for housing that is less than 70% ready.
Mortgage restructuring with government help
The essence of the support : the state repays part of the borrower’s loan so that he can change the terms of the mortgage, for example, choose a different currency, reduce the payment amount, increase the loan term or receive a “credit holiday”.
Who can receive:
- parents of children under 18 years of age;
- parents of children aged 18 to 24 who are full-time students at universities;
- disabled people and parents of children with disabilities;
- young families;
- combat veterans.
In this case, you need to prove that you cannot pay the mortgage under current conditions, for example:
- after paying the mortgage payment, each family member remains less than two subsistence minimums in the region;
- the monthly payment from the date of receiving the mortgage has increased by more than 30%.
There are also requirements for mortgage housing. The property must be your only home and be located in Russia. A one-room apartment should be less than 45 square meters. m, two-room - less than 65 sq. m, and a three-room apartment is less than 85 sq. m. m.
Kinds
First of all, let's define a subsidy.
This word is translated from Latin as support.
At its core, it is targeted government assistance to certain categories of citizens (mainly the poor).
A subsidy is not just about handing out cash. This also means receiving certain benefits established by the legislator.
Its signs are:
- free subsidy basis;
- partial payment of costs, share of the state in expenses, for example, in the purchase of housing or its construction;
- financing assistance from the budget;
- targeted allocation of funds, i.e. for specific needs.
Within the framework of this article, we are only interested in housing subsidies, so we will put other types aside and focus exclusively on housing problems.
State support in this case is directed to :
- to pay for housing and communal services;
- for the purchase of housing.
These are the main types of government assistance in solving housing problems.
In the first case, targeted, targeted funding is allocated or benefits and discounts are provided, mainly to the poor or preferential categories of citizens, for example, pensioners.
The latter, by the way, provides for the return of part of the payment for utilities through the Pension Fund.
In the second, the state participates in real estate purchase transactions made by a person.
It is possible to provide a mortgage loan on preferential terms , paying part of the costs, up to 30%. As a benefit, primarily for young families, social rented housing may be provided.
Accordingly, the solutions, the procedure for execution, the documents for the subsidy in the first and second cases, where to apply for it, differ from each other when receiving assistance from the state to resolve their housing issues.
State support for public sector employees
Social mortgage for state employees
The essence of the program : the buyer can choose the type of assistance that suits him:
- receive up to 15% of the cost of the purchased apartment once;
- receive annual mortgage interest compensation;
- buy housing from the state on special terms.
Who can receive : employees of budgetary organizations who need their own housing, for example:
- live in one apartment with several families;
- have their own housing, in which each person has less than 14 square meters. m;
- live in a communal apartment;
- do not have their own home.
Features : the program is not valid in all regions. Some fields may only attract certain specialists, such as doctors, teachers or young scientists.
If you take out a mortgage on your home, you must work in government agencies for the entire term of the loan. You can quit, but the new place of work must also be a budget organization.
Social mortgage
For whom.
For doctors, teachers and scientists, low-income and large families. Similar programs operate in different regions - check local conditions on your administration’s website. Below we will analyze the conditions of social mortgages in the Moscow region. Required documents, work experience, a list of open vacancies and additional information can be found on the Sotsipotekamo.rf website, by phone or email - [email protected]
In the Moscow region, doctors, teachers and scientists who meet the necessary requirements can apply for a social mortgage. They should not have their own housing in the Moscow region (in other regions and Moscow it is possible), but they must have a signed employment contract to work in the Moscow Region for 10 years or more. They must also meet the following requirements:
teachers:
- specialty: Russian language, literature, mathematics, English, primary classes;
- More than 5 years of experience in municipal and state educational institutions
- first or highest qualification category, academic degree;
- up to 45 years old;
doctors:
- specialization: gastroenterologist, hematologist, infectious disease specialist, cardiologist, neurologist, neurosurgeon, nephrologist, oncologist, orthopedist, otorhinolaryngologist, ophthalmologist, pathologist, pediatrician, psychiatrist, pulmonologist, radiologist, rheumatologist, internist, urologist, thoracic and cardiovascular surgeon, endocrinologist, urologist and several others;
- more than 3 years of experience in public medicine;
- first or highest qualification category, academic degree (exceptions: local pediatrician and therapist, emergency doctor, anesthesiologist, resuscitator)
- women - up to 40 years old, men - up to 50.
young scientists, specialists and young unique specialists:
- up to 35 years old;
- One year of experience in a scientific organization in the Moscow region;
- scientific research in priority areas (security issues, biotechnology, nanotechnology, environmental management, transport, pharmaceuticals and medicine);
- development of technologies important for the Russian Federation.
How does it work.
The state will immediately pay up to 50% of the market value of the apartment. The remaining half of the amount will also be paid by the state in the form of monthly payments - you will only have to pay interest on the mortgage.
Rates: 8.75% for new buildings, 9% for finished housing. The loan term is 10 years.
How to apply.
To become a participant in the program, contact the relevant ministry of the Moscow region: Ministry of Education, Health, Social Development, Investment and Innovation. Submit your application for participation in the program and the necessary documents. The documents will be reviewed by a committee to select suitable candidates. If everything is in order, enter into a joint employment contract with the employer and the relevant department with an obligation to work for at least 10 years.
After this, you will be issued a program participant certificate. Choose an apartment: new building or resale, get a mortgage from the bank.
Deadlines.
The candidate selection committee reviews applications at least once every 2 months. If the application is approved, everything else will take the same amount of time as when applying for a regular mortgage. After receiving the certificate, you will have 3 months to apply for a mortgage.
State support for the military
Savings and mortgage system
The essence of the program : for military personnel who use the Savings and Mortgage System (SMS), the state transfers payments to a special account. Funds in this account are invested to offset inflation and increase savings. The payment amount is the same for all ranks and changes annually. In 2021, the military receives about 300 thousand rubles per year.
Three years after beginning participation in the program, the service member may decide to:
- continue saving;
- buy housing with accumulated funds;
- use the funds as a down payment on a mortgage.
If a serviceman has not used NIS funds for 20 years, he will be paid the full amount. You can spend this money for any purpose.
Who can receive : everyone who entered into a contract after 2005. Some military personnel are required to participate in the program, while others, such as some soldiers, may refuse.
Military mortgage
The essence of the program : Mortgage payments are paid not by the borrower, but by the state. Funds from NIS are used for this. If the amount of the monthly payment is greater than the state payments, the remaining funds are used for early repayment of the mortgage.
Features : If a military man serves for less than 20 years, he must return the funds he received from the state. The debt can be repaid in installments over 10 years. If a military personnel is laid off or forced to resign due to family reasons or poor health, the funds will not have to be returned.
450 thousand rubles for large families
The essence of the program : the state pays 450 thousand rubles so that large families can fully or partially repay their mortgage. If the amount of debt is less than 450 thousand, the payment amount will be reduced.
Who can receive : families in which a third and subsequent child was born after January 1, 2021. In this case, the age of older children is not important.
Features : the payment can be received only once and used only to pay off the mortgage. If you used a consumer loan to purchase a home, you will not be able to participate in the program.
Housing certificates
The essence of the program : the state provides subsidies for the purchase of housing to certain categories of citizens. To do this, they issue personalized housing certificates.
Who can receive : beneficiaries and those who need improved housing conditions. Thus, those in need can be recognized as
- who do not have their own home;
- those whose housing area is less than the established standards;
- who lives in a dilapidated house;
- who lives with a seriously ill family member.
How is the payment amount calculated : there is no specific amount - it depends on the standard cost of housing in the region and the number of family members who will live in the apartment. So, according to the standards, one person is entitled to 33 square meters. m, two - 42 sq. m, and a family of three or more people - 18 sq. m for each.
The number of square meters a family is entitled to is multiplied by the standard cost of one meter in your region.
Features: the certificate is valid for seven months. If during this time you did not manage to find an apartment, you will have to apply for it again. The money can only be spent on purchasing a home—the certificate cannot be cashed out, gifted, or inherited.
Family mortgage
For whom.
It is almost impossible to wait for a subsidy under the Young Family program. It is much easier to obtain a preferential mortgage from the state for families in which a second or any subsequent child will be born from January 1, 2021 to December 31, 2022. Parents must be citizens of the Russian Federation. If you already have three children, there will be no reduced rate. There are no requirements for income, apartment size or the presence of your own home - you can take out a preferential mortgage, even if you have a place to live.
How does it work.
Program participants can take out a mortgage on a new building at a reduced rate of 6% per annum for 3-8 years. The state will pay the bank the shortfall in the difference from the bank rate. You can also refinance an existing loan for a primary home, which was issued before January 1, 2021, and pay less for several years. You cannot take out a family mortgage on a secondary property and refinance the loan. It is also a prerequisite that the mortgage must be for loans with annuity payments (when payments are the same every month).
To apply for a family mortgage, submit a mortgage application to the bank before December 31, 2022. There are no time limits in the program - everything is decided by the bank based on the borrower’s own solvency criteria. The maximum loan amount (not prices) in the regions is 6 million rubles, in Moscow, St. Petersburg, Moscow and Leningrad regions - up to 12 million. Down payment - from 20%, when refinancing, the new loan should be no more than 80% of the cost of the existing one apartments. You can use maternity capital for the first payment.
During the grace period, the rate will be 6% (if it wants, the bank can even reduce this rate). The reduced rate applies only if life and home insurance contracts are concluded. When the grace period ends, the rate will become equal to the key rate of the Central Bank on the date of provision of the loan plus (and not the one that will be in effect at the end of the grace period) 2 percentage points. If you take out a mortgage now, after the grace period the rate will be a maximum of 9.25%.
The duration of the preferential rate depends on the order of birth of the child:
- a second child was born - the rate is valid for 3 years;
- third - 5 years;
- first the second, then the third - 8 years.
If you still have one child, you can take out a regular mortgage, and after the birth of your second, refinance it at a preferential rate.
How to apply.
You can not apply for a family mortgage to all banks, but only to the largest ones. You can select a bank that takes part in the program in your region on the Dom.RF website. In addition to standard documents for the application, you will need birth certificates of children. There is no need to submit documents separately to the local administration - the bank will do everything for you.
Deadlines.
The same as when applying for a regular mortgage. A family mortgage is a real opportunity to save big and afford an apartment right now.
How to get subsidies from the state
You can select a suitable support program on the local administration website. Most regions have their own support programs, but you can also use one of the federal programs.
Once you have decided on the program, contact your local administration or MFC. You will be asked to prepare a package of documents. Most often requested:
- passport of the applicant and his family members;
- an extract from the house register;
- bank statement or income certificate;
- a copy of the work book;
- a document confirming the right to the benefit;
- a document that confirms the ownership of housing or a social tenancy agreement;
- a document that confirms the right to additional space.
It is advisable to make several copies of all documents.
If the administration decides that you are entitled to a subsidy, you will be put on a waiting list for improved housing conditions. When your turn comes - sometimes this happens after several years - the State Property Department will notify you and issue a certificate of subsidy.
What law regulates the provision of subsidies for apartments?
The Housing Code of the Russian Federation states the need to provide such assistance, and the procedure for its provision is prescribed in separate legal acts for each category of citizens and legal acts of the regions of the Russian Federation.
For example, provision of assistance in purchasing housing to civil servants is stated in the Federal Law “On the State Civil Service of the Russian Federation” dated July 27, 2004 No. 79-FZ.
The procedure for providing housing subsidies to this category of citizens is described in detail in the Decree of the Government of the Russian Federation “On providing federal state civil servants with a one-time subsidy for the purchase of residential premises” dated January 27, 2009 No. 63.
Tips and warnings
Help from the state can only be received if there are no payment arrears .
Therefore, try not to go into debt for at least 6 months before applying for a subsidy.
Keep all receipts. They will be witnesses of your integrity.
Remember that government support is targeted. That is, if funds are allocated for the purchase of an apartment, then they can only be spent on purchasing housing.
Prepare documents carefully, one might say, scrupulously checking each one. Inaccuracies and distortions can ruin all your efforts.
At best, you'll have to start all over again. At worst, they will refuse. Especially the latter concerns the reliability of the information contained in the documents.
Once again, we warn you against rash actions or violations of the terms of support. If this is discovered, the subsidy will be suspended or terminated altogether. Those bodies that are responsible for their allocation have this right.
By the way, keep in mind that all your documentation will be carefully checked, as well as the expenditure of allocated funds. Don't take risks.
