How can a military man get an apartment at state expense?

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Published: 02/17/2020

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- Good afternoon. I am currently doing military service under a contract. Our family does not have our own housing; we were given office space to live in. We wanted to take out a military mortgage, but then we learned about the possibility of obtaining a military certificate. Tell us in more detail what it is and how to obtain a military certificate for the purchase of housing?

— Federal Law 76 “On the Status of Military Personnel” guarantees improved living conditions for certain categories of contract soldiers. One of the options for providing this benefit could be the issuance of military certificates for real estate.

• Conditions for obtaining a military certificate How much is it issued?
• Validity periods
• Who is entitled to
• Categories of citizens not entitled to a certificate

What is a military mortgage

This is a government program to provide housing for military personnel.
Thanks to it, they can buy an apartment without investing their own money: the down payment will be provided by the state, which will also make monthly loan payments. A military man is not limited in his choice of housing: he can take out a mortgage on an apartment in a new building or on the secondary housing market, or purchase a private house with a plot of land. The state allows you to choose any region to purchase real estate. For example, an officer serves in Kamchatka, but can buy an apartment in his native Serpukhov, Moscow or Sochi - closer to the sea.

An officer can take advantage of a military mortgage, even if he already has his own home: the program is designed to increase the prestige of military service.

How does a military mortgage work?

To take advantage of a preferential mortgage, a military man must Federal Law dated August 20, 2004 N 117-FZ “On the savings and mortgage system of housing for military personnel.” serve under a contract and be a participant in the savings and mortgage system program. The project is supervised by Rosvoenipoteka, a special unit of the Ministry of Defense. When an officer registers in the system, a personal account is opened for him. The state pays contributions there from the budget, and the military can use them.

Who can become a participant in the savings and mortgage system

To do this, you need to fall into one of the categories specified in the law:

• officers who graduated from a military school or entered service under a contract after January 1, 2005;
• warrant officers and midshipmen who served under a contract for three years;
• military personnel who went into reserve and signed a new contract.

These categories of military personnel are connected to the savings and mortgage system automatically. Other military personnel can join the program voluntarily: to do this, you need to submit a report to the unit commander about inclusion in the Register.

You can take advantage of this opportunity:

• sergeants, foremen, soldiers and sailors who have entered into a second contract for military service;
• military personnel who entered into their first contract for military service before January 1, 2005.

In addition, military mortgages can be obtained by military personnel of the Ministry of Internal Affairs and the Ministry of Emergency Situations: officers of the riot police, the National Guard, SOBR, and private security.

Features of use in divorce

If controversial situations arise, they turn to the decisions of the Plenum of the Armed Forces of the Russian Federation No. 15 of November 5, 1998. During a special meeting, the extension of the right of common ownership to real estate acquired during marriage under a military certificate was confirmed. Thus, in a divorce, housing is divided equally. An exception is special conditions under the marriage contract.

The use of a housing certificate is compared to a preferential mortgage for military personnel, but lending implies greater financial opportunities. It should be remembered that the unused portion of the funds allocated for the GSG is transferred back to the state budget irrevocably.

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If you have any complex questions, ask them here or contact the duty lawyer for professional advice.

You may be interested in material about military mortgages in 2021.

How much money does the state give?

After inclusion in the savings-mortgage system, the state will annually accrue a fixed contribution to the military’s personal account: in 2021 it amounts to Annual Contributions. 280 thousand rubles. The payment is indexed so that in 2021 the amount will increase in accordance with the inflation rate for 2021.

For the first three years, the money is accumulated in the military account and cannot be used. During this time, the amount of deductions will reach approximately 850 thousand rubles - enough for the down payment on the mortgage.

Maximum loan amount Mortgage calculator for calculating the maximum amount for programs with annuity payment under the program - 2 million 590 thousand rubles. If the apartment is more expensive, the military man will have to pay extra: either add his own funds to the down payment, or pay the mortgage himself after retirement.

When purchasing a home, you can use maternity capital and receive a 13% tax deduction, but only for the amount that the serviceman invested himself. The maximum deduction amount is 260 thousand rubles. You can get them if you invest 2 million of your own money in the purchase of real estate.

It is not necessary to use the money three years after opening the account: while the military man is serving, deductions will accumulate.

Legal basis and principle of operation

The campaign, on the basis of which the certificate itself is issued, started in 1998. The basis for it was the “Presidential Program - Housing for Military Personnel.” Also, regulatory documents that directly affect the process of obtaining a certificate include the law “On the Status of Military Personnel.”

The document itself, which gives the right to receive an apartment, is essentially a kind of security. It is issued in the form of a personal document for a specific military man and confirms that the latter can qualify for a targeted subsidy intended for the purchase of housing. Simply put, this is a documentary exercise of rights to the above subsidy with wider opportunities in terms of choosing a specific property.

The principle of operation of state aid under a certificate is quite simple. Its distribution occurs on a first-come, first-served basis, for which executive authorities or responsible persons in military units are responsible. You can receive the coveted paper only when it is your turn, and registration occurs from the moment you submit your application and confirm it.

What conditions must a military man fulfill?

During military service, the loan is paid for by the state. But the program has an important nuance: Article 10. The emergence of the right to use savings accounted for in the participant’s personal savings account: the money used by the military personnel belongs to the country. When he takes out a mortgage, the apartment is under a double burden: from the state and from the bank. In order not to remain in debt, the military man must comply with the terms of the program:

• serve 20 years;
• serve 10 years and not terminate the contract early without good reason.

Then at the end of his service he becomes the legal owner of the apartment.

If you quit without a good reason, you will have to return all the money to the state - the down payment and mortgage payments - and repay the loan to the bank yourself.

An exception is dismissal after 10 years of service for a valid reason (reduction due to organizational and staffing measures, reaching the maximum age for service, being declared unfit or partially fit by a medical commission, transfer to a new duty station). It turns out that there are three scenarios for the development of events.

Military person served 20 years or more

In such a scenario, the officer owes nothing to the state. If during his service he took out a mortgage, the apartment becomes his property. But if the mortgage is not paid in full, after dismissal the military man makes contributions himself.

If the military man did not use a mortgage during his service, the money remains in his account. After dismissal, he can use them to buy an apartment.

The military man served 10 years or more (but less than 20) and resigned for good reason

In such a situation, the military man also does not need to return money from his personal account in the savings and mortgage system. He pays the rest of the mortgage himself.

If an officer did not participate in the military mortgage program, he can do so after dismissal.

The military man served less than 10 years or resigned without good reason without serving 20 years.

Under such conditions, the officer cannot use the money in the savings account and take out a mortgage, and if he did this during his service, all the money will have to be returned: both loan payments and the down payment.

Validity period of the document

The certificate received for the purchase of housing will be sold within six months. At the same time, only 60 days are allotted for transferring it to the bank when completing a transaction for the amount specified in it.

If housing is purchased through a credit institution, the validity period will be 9 months. It is worth noting that the latter must be a participant in the program and obtain proper certification.

Also, if the deadline has been missed, the bank will submit a request to replace the expired certificate with a new one.

How to get a military mortgage

Step 1. Registration of a certificate

Three years after inclusion in the savings-mortgage system, a military man can use the money in the account. To do this, you need to submit a report addressed to the commander of the military unit to obtain a certificate. The document is issued at Rosvoenipoteka within three months, and it is valid for six months.

Step 2. Selecting a partner bank

Not all banks operate under the military mortgage program: on the Rosvoenipoteka website you can see a list of accredited institutions. The rate ranges from 9.2% to 10.6%, the term is calculated so that the military man can repay the loan before reaching retirement age (45 years). For example, if an officer buys an apartment at 25 years old, he will be given a mortgage for 20 years, and if at 30, then only for 15 years. Some banks allow you to add your own funds so that the military can buy a better apartment.

To understand how much to expect, you need to come to the bank with a certificate. Taking into account the serviceman's age and the interest rate, the bank will determine the approximate cost of housing that you can purchase.

Step 3. Choosing housing

You can choose an apartment in a new building or on the secondary market, a cottage or a townhouse. After this, enter into a preliminary purchase and sale agreement with the seller.

Step 4. Applying for a mortgage

After choosing an apartment, the military man enters into a loan agreement with the bank. The documents are sent to Rosvoenipoteka for approval of the transaction, after which the organization transfers the initial payment to the bank account (from those savings that were in the military’s personal account).

Step 5. Property registration

The military man registers the purchase and sale agreement and receives a certificate of ownership and an extract from the Unified State Register of Real Estate. They will note that at the time of the mortgage the housing does not belong to the military and is under double encumbrance. On this basis, the bank transfers the money to the seller of the apartment, and Rosvoenipoteka begins to transfer monthly mortgage payments.

What documentation will be needed?

If you want to purchase a benefit, the military member must provide a number of documents. This includes:

1. A report that is handwritten by the military personnel.
2. Military ID.
3. House book (extract from it) or any other similar document.
4. A document indicating that the family or military personnel is registered.
5. Duration of contract service (supporting documents).
6. Dismissal and its reasons (supporting documents).

It is best to ensure that all documents are collected at once. This will allow the issue to be addressed immediately. If any documentation is not provided, then assistance will not be provided.

What's the result?

A military mortgage is a profitable deal for those who are confident that they will devote their entire lives to the Russian army. Under this program, the state pays a loan for a military serviceman without cutting his salary. But you should understand that for an apartment an officer must pay 20 years of military service without the opportunity to resign and change his profession, and the amount of the mortgage depends on the age of the borrower - it may not be enough for good housing. The benefit is different in each situation, but in any case it is an opportunity to get an apartment at the expense of the state.

Amount calculation options

The amount of a military certificate for the purchase of housing depends on several parameters. Firstly, the composition of the family that plans to purchase an apartment is taken into account. In this case, one serviceman can receive 33 m2, a married couple - 42 m2, and if there are children, the footage is based on the ratio of 18 m2 per person. Secondly, when determining the amount, the average cost of housing in the region per 1 m2 is taken into account. Unfortunately, the latter parameter covers all types of real estate intended for residential purposes, so the overall figure is quite low.

The actual amount for the purchase can be obtained by multiplying the resulting square footage by the average price of 1 m2. It will be stated in the certificate issued to you.

Let's look at a specific example. Let's assume that there are 3 people in a family, and 1 m2 costs 40 thousand rubles. Then, using a simple formula, we get an amount of 2,160,000 rubles (18 * 3 * 40,000). Using the square footage parameters and the average cost per square meter, you can determine the monetary volume of such a subsidy.