How much do you need to earn to get a mortgage?

A mortgage involves issuing a loan to purchase a home for a long term. In this case, the amount is issued quite large, and interest or commissions are added to it. Therefore, the salary for a mortgage should be such that it is enough not only to pay off monthly payments, but also to maintain normal living conditions. There are no generally accepted requirements, but there are a number of nuances under which banks are ready to issue a home loan. One of the main conditions is a stable income, officially confirmed.

What income do you need to have to get a mortgage?

There is no minimum or maximum indicator at which a client is guaranteed to be approved for a mortgage. This is calculated on an individual basis, but the minimum salary is unlikely to be suitable. How much must a potential borrower earn to be issued a mortgage loan?

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It's simple: the higher your earnings, the greater your chances of getting a housing loan. There are 2 factors to note here.

• When calculating the mortgage, a percentage of the salary is taken into account, in proportion to which the maximum allowable amount is determined. There are no specific figures - a lot depends on the location in which you plan to purchase real estate. Apartments in Moscow, Sochi and St. Petersburg are expensive, so the income level must be high. Housing in the region or on the outskirts of the city is cheaper, which means a lower salary is suitable for obtaining a mortgage.
• The final ratio of income and expenses is also taken into account. The norm according to which banks are ready to approve a loan is when the client will spend no more than 40-50% of his income to repay it. If a person has other debt obligations (for example, a previously issued car loan), then the amount to repay them is added to the expenses.

Examples:

• If, with a salary of 40,000, 15,000 rubles, you spend on a car loan, you can’t even dream about a mortgage.
• When a citizen earns 30,000 rubles, but has no other debts, the loan is more likely to be approved - provided that the monthly payment does not exceed 15,000 rubles.
• And if a client receives a monthly income of 20,000 rubles, and at the same time he has a child who needs to be supported, then the bank will refuse a mortgage.

When a family takes out a mortgage, the total income is taken into account, and debt obligations (like all property) are divided equally. Then, after deducting the repayment amount and other debt payments, the remaining funds should be enough to live on - that is, there should be a subsistence level for each family member. But there are a number of nuances here:

• if you have children, expenses for them are deducted;
• if there is a benefit, it is added to income;
• if the spouse is dependent on the husband, this will lead to a reduction in the amount of the mortgage issued.

In any case, the solvency of clients will be assessed by the bank individually.

What to do if there is no official employment

Not only people with permanent employment receive money in an envelope. Representatives of the construction professions, industrial climbers, freelancers from the IT sector, private tailors and hairdressers provide services on an unofficial basis and have a regular income. At the same time, not everyone registers as an individual entrepreneur. More often, payment for work occurs according to a written or oral agreement between the contractor and the customer. Free labor workers are not employed and do not pay taxes. In life, they have a stable, albeit gray income, and are ready to bear responsibility for a housing loan. But how can you prove your financial solvency to a lender and take out a mortgage without an official salary?

Bankers know their target audience well and are ready to offer special conditions to attract clients. At the same time, bankers always calculate possible risks and protect themselves as much as possible from possible non-payments. If you do not have official employment, there are several steps you can take to get a mortgage:

• find a co-borrower or guarantor with official employment and regular income;
• mortgage your own property;
• accumulate a down payment above 50% of the cost of the mortgage apartment;
• provide a fixed-term contract for the provision of services with the employer.

If employers and customers unofficially send payments to a bank card for a year or more, the person probably already has a special loan offer from this bank. The downside is that in the absence of official paper from the place of employment, it will be difficult to influence the size of the already approved loan amount from the salary bank.

What does the bank take into account when assessing income for issuing a mortgage?

In most cases, a scoring system is used to assess the solvency of a potential borrower. The application form filled out by the applicant is processed by a computer program, after which it assigns a score in the form of points. The highest points are awarded to those who demonstrate good financial standing, including:

• real estate (country house, dacha);
• car and garage;
• own business or income from self-employment;
• profit from investments;
• land plot.

The score increases if you have extensive work experience at your current place of work, higher education and a profession in demand, with participation in public organizations, as well as for people of working age. Citizens who do not meet the following criteria are automatically eliminated:

• age (over 75 years);
• poor health;
• employment (insufficient work experience);
• income level;
• many dependents.

For “unreliable” clients, a loan of a minimum amount at maximum interest may be offered. Whether to agree to such conditions is everyone’s personal choice.

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How does the mortgage amount depend on income?

When applying for a mortgage, the loan officer will request documents confirming your solvency. The bank wants to be sure that your income will be enough to pay your monthly payments. The higher your official earnings, the greater the likelihood of receiving approval for the required amount.

After you submit all the necessary documents, the bank will conduct a verification. If your credit history is good, your income is sufficient and there are no debts, then most likely the mortgage will be approved, and the interest rate will not be excessively high.

The bank has its own strict requirements regarding the amount of income. The loan burden should not exceed half of your earnings. For example, if you receive 20,000 rubles a month, then the loan payment cannot be more than 10,000 rubles.

Required income to obtain a mortgage at SberBank

A leading financial institution in Russia, whose housing programs are in high demand. The bank considers each mortgage application individually, but a general rule applies to all borrowers: their monthly income must be at least 2 times greater than the monthly mortgage payments

. Ideally, when payments do not exceed 40% of official profit. The remaining amount is determined after subtracting mandatory costs:

• alimony;
• rental of property;
• other debts;
• other obligations.

To repay a mortgage without problems, you need a sufficient level of income; the minimum salary for a mortgage is not suitable. Sufficient income implies that, regardless of life difficulties or temporary financial problems that may arise during the term of the mortgage agreement (loss of job, illness), the client will be able to fulfill his debt obligations in a standard manner. Taking into account the cost of living and real estate prices, SberBank is ready to approve a mortgage if the borrower’s salary is about 40,000 rubles. But this amount is conditional.

Since SberBank’s mortgage programs are chosen by the majority of clients, we will consider the conditions for average borrowers who do not use the institution’s services (salary projects, deposit account, etc.).

Anyone planning to rent an apartment in a new building must first save at least 15% of the cost of housing for a down payment. The base interest rate is 8.5% (when using a SberBank salary card it is reduced to 8%). But:

• if you cancel life insurance, it increases to 9.5%;
• and if you refuse the “Electronic Registration Service” and the initial payment is up to 20%, the rate increases by another 0.7% in total.

As a result, we reached a rate of 10.2%. If it is impossible to confirm income with a certificate, it increases to 10.5%. The maximum mortgage term is 30 years.

Preferential mortgage

It happens that there is no way to find co-borrowers and guarantors, and your income does not allow you to take out a housing loan. How to get a mortgage with a small salary in this case? Various benefit programs will come to the rescue.

The Russian Federation has many benefits at the federal and regional level. Their goal is to provide housing for low-income people, large families, young families, public sector workers, etc.

Social mortgage

It is intended for citizens who need improved housing conditions. In order to get into this program, you need to stand in line as someone who does not have their own housing in Russia. State assistance under this program consists of:

• interest rate reduction;
• allocation of subsidies;
• purchasing housing from the state fund.

Mortgage for a young family

Families who need housing can participate in this program, and at least one spouse must be no more than 35 years old. This benefit is provided in the form of a subsidy. Its size is 35–40% of the cost of the purchased residential property. It can be used as a down payment. In addition, it can be used to pay off mortgage interest.

Military mortgage

This is a targeted program for the purchase of housing by military personnel. A prerequisite is military service experience, which must be at least three years. This program is cumulative in nature.

Each applicant becomes a participant in the NIS (Savings System). For each year of participation in it, funds are credited to the serviceman’s personal account. After a certain time, these accumulated funds can be used for a down payment. Subsequent loan payments will be paid by the state until the service ends.

In addition to the above, there are other benefits. In almost all programs, the main requirements are the need to improve housing conditions, a certain age of the borrower, and work experience in a specific field. If you qualify for at least one of the programs, you must receive it.

Now it’s clear how to get a mortgage if your official salary is low. To do this, it is enough to thoroughly study all the nuances of issuing a mortgage and select the most suitable loan product for the borrower. Of course, with a large salary, getting any loan is not difficult. But, even with a small official income, using the above methods, it is possible to obtain bank approval for a housing loan.

Mortgage calculation based on income

Now let's look at specific examples of how to calculate the amount of a possible mortgage loan at a certain salary.

Calculation example No. 1

Let's say a young specialist wants to find out whether they will give a mortgage with a salary of 20,000 rubles and what he can count on with such an income if he wants to buy an apartment in the Moscow region worth 2 million rubles. Subject to the following conditions:

• payment of a minimum 15% down payment in the amount of RUB 300,000;
• confirmation of income with a certificate;
• applying for a loan for a maximum period of 30 years.

he will receive a rate of 10.2%. As a result, the minimum monthly payment will be 15,171 rubles. Ideally, the required salary to approve such a mortgage is 19,529 rubles. Since the difference between the existing and required salary is small (only 471 rubles), the bank can approve a mortgage provided that the client has a good credit history.

Calculation example No. 2

With an officially confirmed salary of 50,000 rubles

, the client chooses an apartment in one of the new buildings in St. Petersburg not from an accredited developer, which is estimated at 4 million rubles. Optimal conditions for this:

• down payment – ​​30%;
• use of insurance;
• mortgage term – 10 years.

Then, with a final rate of 8.5%, the monthly payment will be 34,716 rubles, which is equivalent to the required monthly income of 44,691 rubles. Since the client’s salary for the mortgage exceeds this amount, he will probably be given a loan.

Calculation example No. 3

If the borrower’s net income is 80,000 rubles

, but it cannot be officially confirmed. Let's say this client plans to buy an apartment in Moscow from a third-party developer at a price of 7 million rubles, and does not want to use insurance. He selects the conditions:

• down payment – ​​50%;
• loan term – 7 years.

In this situation, the rate will be 9.5%, the monthly payment will be 57,204 rubles, and the required salary will be 73,640 rubles. Most likely, this citizen will be approved for a mortgage with unofficial income.

Only preliminary calculations are given here. When contacting a bank, they can change either up or down (depending on the individual capabilities of the potential client).

What the law requires regarding income

From October 1, 2021, a virtually new era has begun in consumer lending - banks can no longer uncontrollably increase lending to those clients who are already over-leveraged. The Bank of Russia began to require that the debt burden indicator be calculated for each client - however, so far only for consumer loans.

The debt burden indicator (DLI) is the ratio of the total amount of payments on all loans per month to the amount of the borrower’s monthly income

. And if the PDI turns out to be above 50%, then the bank will be forced to apply premiums to the risk level for this loan. In practice, this means that the bank will have to create a larger reserve - and this will divert funds from circulation and reduce potential profits.

Banks take data on the borrower’s loans from the credit history bureau, and request data on income from the borrower himself. So far, risk factor add-ons apply only to consumer (unsecured) loans, and when issuing mortgages, PDN does not directly affect approval.

The Central Bank planned to introduce mandatory calculation of personal income tax for those borrowers who take out mortgage loans

– starting from the second half of 2021. But the second half of the year has already arrived, and banks still do not calculate PIT. The Bank of Russia has decided to postpone the introduction of increased coefficients for loans from overleveraged borrowers, and on what date has not yet been announced.

It is possible that when the PDT on mortgage loans is finally introduced, it will turn out that there will simply be no one to issue mortgages. The United Credit Bureau's recent survey of mortgage borrowers for 2021 found that their average PPA rose to 50.1%. This means that the average borrower pays a little more than half of his income to pay off his debts.

Moreover, PDN differs for borrowers with different incomes:

• borrowers with incomes of up to 30 thousand rubles per month pay 86% of their income for loans;
• borrowers with incomes from 30 to 50 thousand rubles pay 58,4
  %;
• borrowers with incomes from 50 to 70 thousand rubles pay 45.5% of income
  .
• on average, all borrowers with incomes up to 70 thousand rubles pay 63.3% of their income
  .

The Central Bank data is approximately the same - most borrowers receive no more than 70 thousand rubles per month, and pay back 47 to 50% of their income on loans. Credit organizations say about the same thing - that most mortgage borrowers receive salaries of up to 70 thousand rubles per month

. Considering that the average monthly salary in May 2021, according to Rosstat, was a little more than 50 thousand rubles, and the median was less than 30 thousand, the “fork” is quite large.

So how much do you need to earn for the bank to approve a mortgage?

How to confirm income?

The future borrower must confirm permanent employment with official earnings. To do this, you need a certificate in form 2-NDFL showing your salary for the last six months. Not all employees of large organizations can provide such a document, so the bank is ready to accept a certificate from them for consideration, which indicates:

• income level;
• details and contact details of the company (for verification of information by the bank’s security service);
• the fact that the potential borrower has been working in the company for at least 6 months (indicating the position).

You can confirm the presence of additional sources of income by providing:

• deposit statements;
• confirmation of insurance payments;
• statements of profits from shares and other securities;
• funds received from the rental of real estate confirmed by the contract;
• certificate from unofficial work in the bank form;
• statements of charges from bank accounts;
• tax return on income received (for individual entrepreneurs and legal entities);
• evidence of dividends from participation in the business;
• lifetime payments to certain categories of citizens;
• remuneration under civil contracts or from the use of intellectual property of a potential borrower.

Everything will be strictly checked, and not all documents will be taken into account by one bank or another. However, it is worth using this opportunity to get a larger amount. In this case, the client will be strictly controlled.

How to calculate everything correctly

In many cases, a mortgage loan turns out to be more profitable than renting a home - with comparable monthly payments, the apartment immediately becomes the property of the borrower, and after 15-20 years the loan is paid off and he can freely dispose of it. But if, in case of financial problems, you can move out of a rented home without any problems (for example, to a cheaper option), then a mortgage is serious and long-term.

You need to approach applying for a mortgage wisely - having calculated all possible numbers and risks. The borrower must adhere to several principles:

• calculate your future expenses in advance (or even better, calculate with a good margin). As Kirill Sivolapov from the Institute of Industry Management of RANEPA says, it is desirable that no more than half of the borrower’s salary be spent on paying all mandatory loan payments;
• In addition to mandatory expenses and loan payments, some amount must remain from the salary. As QBF Vice President Vladimir Maslennikov told us, monthly income should be at least 3 times higher than the amount of payments on all loans. In numbers, this gives approximately 70.7 thousand rubles per month on average in Russia, and for Moscow the minimum income will be 158.4 thousand rubles;
• do not pursue loans “according to two documents”, with a minimum down payment and other enticing promotions. All this directly affects the interest rate - that is, it is easier to get such a loan, but you will have to pay more for it. It is better to provide a certificate in form 2-NDFL and other documents, but get a loan at a minimum rate;
• Taking out a personal loan for a down payment is not a good idea. Firstly, this increases the debt burden in the first years of paying off the mortgage, and secondly, it may cause a refusal of a mortgage loan;
• Always have a reserve of funds to pay the mortgage. Experts advise saving money for at least 6 monthly payments and not spending it. As the coronavirus pandemic has shown, you can literally lose your job “out of the blue,” but finding a new one will not be very easy, especially if your salary allows you to pay the mortgage;
• If your salary is just a little short of the required level for the bank to approve the loan, you can try to transfer your salary into it. The State Duma has long ago adopted a law against “salary slavery” - you can receive your salary through any bank that will provide slightly more interesting conditions for such a client.

But the main thing to think about is whether you are ready to continue making monthly mortgage payments for the next 15-20 years? At first it seems that you can endure it for a while for the sake of your home, but a long-term mortgage depresses many people psychologically - even if a person has a high salary and has no problems with money.

Will they give you a mortgage with a gray salary?

The average bank will issue a mortgage loan only if the borrower can document an income sufficient for repayment. Therefore, “gray” salaries and verbal guarantees are not accepted.

However, some financial institutions (including SberBank) are increasingly offering mortgage programs that make it possible to obtain a loan using two documents, without an income certificate. For this you need:

• passport;
• additional identification document.

In this case, the interest rate will be higher, and the client’s credit history must be impeccable.

An option to get out of the situation, as in the case of applying for a mortgage with a small official salary, is to make a down payment of more than 50% of the cost of housing, and take out the remaining half as a mortgage, which is offered by SberBank. As a result, the amount of monthly payments will be relatively small, and proof of income will not be required.

In other words, when assessing the client’s solvency, the bank starts from the official “white” salary, but takes into account the presence of other undeclared income, which may include “gray” salary.

On the other hand, it is better to contact a bank that initially provides programs without salary confirmation. For example, there are institutions (VTB) offering mortgages “without formalities” and proof of solvency.

With what salary can you get a mortgage?

A borrower who does not receive a minimum salary can handle a mortgage . Buying a home involves large expenses, which can only be afforded by a solvent citizen with a salary significantly higher than the minimum wage.

The higher the applicant’s income, the higher his chances of getting a loan at the optimal interest rate and in accordance with his needs. Low earnings will most likely serve as a reason for the bank to refuse to apply for a mortgage.

It is difficult to name the minimum salary for a mortgage, but it is possible to calculate what it should be in a particular case based on the income-expense ratio. It is generally believed that no more than 40% of the salary should be spent on paying off debt obligations.

However, each bank has its own requirements for this ratio; Let's highlight 3 main ones:

• 40/60 is a ratio that allows you to realistically assess the solvency of the applicant, giving him the opportunity to apply for a mortgage, although it significantly burdens the family budget.
• 50/50 is the most optimal ratio of income and expenses, which is supported by most banks.
• 60/40 is a strict requirement according to which, after making a monthly payment, at least 60% of the income in the borrower’s family must remain for personal use. This option is the safest for both parties, but it does not allow you to count on a large loan size.

All banks have a loan calculator on their websites that allows you to calculate:

• maximum possible loan size;
• monthly payment amount;
• overpayment.

In this case, the calculation can be made:

• by loan amount;
• according to the cost of housing;
• by income;
• with and without the down payment;
• taking into account the method of repayment.

For example, in a small Russian city you can buy an apartment for 500,000 rubles. If you take out a mortgage loan for 10 years at a rate of 10%, then you will need to pay 6,608 rubles monthly to pay off the debt. With a 50/50 ratio, the salary should be at least 13,000 rubles.

What documents are required to apply for a mortgage?

The first step to getting a loan is choosing a suitable bank and submitting an application for a loan. Sberbank, for example, has an online document submission system, where you need to take high-quality photographs of all the necessary papers and attach them to the application form in your personal account. This semi-automatic scoring is most convenient for busy clients. However, it should be borne in mind that the absence of a minimum continuous work experience at one place of work at the time of filing an application means almost 100% refusal at this financial institution. For clients without official employment, Sberbank is not the best choice, unless the mortgage amount is 10-20% of the cost of housing.

If you cannot officially confirm your income, choose to submit documents in person to a bank manager. Although this is only the first link of the banking machine, there is a chance to use the personal factor to increase your chances. A typical package of documents for obtaining a mortgage looks like this:

• completed borrower application form;
• borrower's passport;
• employment documents: work record book, current employment contract, contract for the provision of services;
• proof of income: if this is a certificate in a bank form, it must be endorsed by the employer. Also, a long-term lease agreement for the borrower’s own office space and other documents confirming the fact of his work activity can serve as proof of income;
• documents on marital status: marriage certificate, birth certificates of children;
• military ID - for men liable for military service.

All co-borrowers must present similar documents to the lender. If the co-borrower’s income is not taken into account, documents on his solvency are not needed. As additional documents, the bank may request:

• certificates of ownership of the housing provided as collateral and its appraisal by an appraiser accredited by the bank;
• tax returns for the last year, a contract for the provision of services and statements of the movement of funds on the client’s personal account - to confirm income from self-employment.

After approval of the application, you will also need to provide documents on the subject of the mortgage. In this case, the buyer usually pays for the real estate appraisal; the seller must provide the remaining documents to the bank. If, based on the results of the real estate assessment and consideration of the application, the bank has approved a sufficient amount to complete the purchase and sale transaction, the client becomes the borrower and owner of his own apartment. The apartment itself remains pledged to the bank for the term of the loan.

How can an individual entrepreneur buy an apartment with a mortgage?

The purchase process is practically no different from the procedure for individuals:

1. Find suitable housing.

You need to know exactly how much money you will request from the bank.

2. Submit pre-applications for a mortgage.

You can contact several banks at once - you can compare conditions and choose the most advantageous offer. Wait for the preliminary application to be approved - this could be a call or SMS from the bank.

3. Collect documents and provide them to the bank.

What specific documents will be needed depends on the bank and type of housing - check with the bank manager for the full list.

Wait for approval - the manager will inform you that everything is in order with the documents and, in general, the bank is ready to give you money to buy an apartment.

4. Evaluate the property.

If you purchase an apartment on the secondary market, the bank will ask you for an appraisal report - this is a document confirming the market value of the property being purchased. Such a report is made by specialized appraisal companies - the bank will recommend a list of accredited ones, or you can compare the price and choose an expert for the appraisal yourself. For new buildings such a report is usually not needed. Read more in the article “How to evaluate an apartment for a mortgage.”

5. Wait for the bank to approve your mortgage.

Employees of the credit institution check the documents, your credit history, and the assessment report for compliance with the law. If everything is in order, you will be notified of final loan approval - usually within 1-7 days. If something is wrong, the bank will refuse to issue a mortgage - then you will have to look for other housing.

6. Sign the loan agreement.

It must contain information about the terms of the loan, the full amount, and a payment schedule indicating the monthly payment must be attached. Check that the contract contains information about the property being purchased, its address and a description of the parameters.

7. Complete the deal.

Sign an agreement for the purchase of an apartment - a purchase and sale agreement if you are buying real estate on the secondary market, an equity participation agreement if you are purchasing a new building from a developer, or an assignment agreement if you are buying housing from a shareholder. Submit all documents, including the mortgage agreement, for registration at the MFC. In 5–10 days you will receive a response that the transaction has been registered.

If not, you need to understand the specific reasons - maybe there is something wrong with the documents for the apartment or there are problems in the mortgage agreement. If this happens, you should contact a real estate expert or a lawyer competent in such matters.

8. Insure your apartment.

In order for the bank to transfer money to the seller, and for the mortgage agreement not to be declared illegal, you need to take out insurance for the apartment. There are nuances here.

• There is compulsory insurance - property insurance. Such a policy is required by law from the buyer of real estate to take a mortgage. You can insure your home with any insurance company, not necessarily with the one recommended by the bank. It costs, depending on the company, about 0.5–1% of the cost of the apartment. This coverage must be repeated annually as long as you pay off your mortgage. If you do not buy a policy, the mortgage agreement may be terminated, and the bank may demand the entire amount with interest from you through the court at once. Or will take other measures, depending on what is written in your contract.
• There is voluntary life insurance. If you make such a policy, the bank will usually reduce the interest rate - usually by 1 percentage point. Such insurance cannot be required.
• And there is title insurance - insurance against loss of an apartment. This is also an optional insurance that you can take out if you wish.

9. Get proof of ownership.

To make sure that the apartment really belongs to you, you can order an extract from the Unified State Register from the MFC. It should indicate that you own the home, but it is pledged to the bank due to a mortgage loan.

You can also call the seller and ask if the bank has transferred the money to him - the lending institution usually pays the full amount within 1-5 business days after the transaction is registered.

Requirements of banks for borrowers

Lenders evaluate future mortgage holders based on a number of criteria:

• solvency - the level of monthly income, the ability to officially confirm your income;
• financial stability - length of service at last place of work, total length of service, average annual earnings;
• social status - age and professional type of activity;
• family status - presence of a spouse, children, dependents;
• availability of savings - cash for a down payment, real estate and other expensive property owned;
• clean credit history - no delinquencies, credit card limits, no problems with credit history in immediate family, the borrower’s integrity in the past;
• availability of solvent and reliable guarantors and co-borrowers;
• absence of problems with the law in the present and in the past;
• the user’s activity on social networks, the content of the content in which the user is interested - sometimes a person’s profile can tell much more about him than official documents.

Based on the analysis of the listed data, the underwriter makes a positive or negative decision on the application. Also, the scoring result is influenced by factors that the borrower himself cannot influence:

• the credit policy of the Central Bank at the time of application - the presence of special recommendations regarding the screening of potential mortgagers;
• the credit policy of the bank itself, where the client applies;
• terms of the mortgage program chosen by the client.

Is it possible to take out a housing loan if there are no documents proving official employment? There are no direct prohibitions in the mortgage law that would limit the issuance of loans to officially unemployed persons. However, the borrower will have to resort to additional measures to convince the bank of its own financial stability. This issue is especially acute for freelancers who receive their main income and do not have an entry in their work book. In Russia, the share of self-employed people at the beginning of 2020 is about 20% of the total working population. This is a very large number of solvent and responsible people who have their own needs. For freelancers, there are several ways to increase your chances of getting a mortgage approved:

• Choose lending programs that provide proof of income on the bank form. Agree with key clients so that they confirm your monthly income from cooperation with them when communicating with a bank employee.
• Agree with key clients so that they confirm your monthly income from cooperation with them when communicating with a bank employee.
• A mortgage based on two documents is a simplified way to get money for housing without unnecessary paperwork. You will still have to indicate the employer’s details in the application form, and an agreement with key clients with whom the freelancer has long-standing and stable relationships will also help.
• When submitting documents to the bank, present an agreement on the provision of services with important customers, a statement of the flow of funds in your personal account and a tax return for the last reporting period. These documents will help demonstrate that you earn regular income and are a responsible taxpayer.

What kind of entrepreneurs are given a mortgage?

There are several basic requirements that banks impose on all borrowers. If you do not match on some criteria, this does not mean that you will definitely not be given a mortgage. But, most likely, you will have to try to submit documents to several banks at once to increase the likelihood of your application being approved.

Citizenship.

You must be a citizen of the Russian Federation. Permanent registration in the region where you plan to take out a mortgage will also be useful.

Age.

It is important for the bank that you are of working age for the entire mortgage repayment period. The minimum age is 18–21 years. For men under 27 years of age, you will have to provide a military ID with a mark of completion of service or a commission decision on unsuitability for it.

If you have not yet served and do not have a military ID, the chances of getting a loan become less - banks are reluctant to issue a home loan to someone who can leave to serve for a year and lose their source of income.

You also need to pay attention to the age you will be at the end of payments. For example, if a person is now 60-65 years old, the bank will most likely refuse to issue a loan for 30 years - the likelihood is too high that the borrower will not be able to repay the loan consistently until he is 90-95 years old.

Now banks issue mortgages to pensioners. But usually it is calculated so that the age at the time of full repayment of the loan is no more than 70 years.

Duration of IP status.

Those who have just registered the status of an individual entrepreneur with the tax authorities will most likely not be given a mortgage. The minimum period for running a business is usually 6–12 months. This means not just maintaining status for such a period, but also running a business to generate income.

No debt.

The requirement is suitable for any borrower - if you want to take out a mortgage, you must not have overdue debts on the loan. It is also important to pay taxes and mandatory contributions to the pension fund and social insurance fund on time.

Credit history.

Banks, as a rule, check not just the presence of debts and arrears, but also your overall credit history. You can find out what credit institutions think about you using State Services.

The history should contain information about all the loans that you have ever paid. Banks also have access to data on overdue payments, even if you have already repaid them.

A good credit history that will make you more likely to get a mortgage is having several loans that you have repaid on time. The bad thing is loans that are overdue, even if they have already been closed. Even worse is the presence of court decisions on overdue loans.

You can fix a bad credit history by taking out several small loans and paying them off on time.

Income.

In order for a bank to issue a mortgage, as a rule, the monthly payment on it should not exceed 30-45% of your income. Moreover, income also takes into account other credit loads. For example, you receive 100 thousand rubles a month, but pay 20 thousand for a consumer loan. Income will be considered 80 thousand.

Before filling out an application for a mortgage at a specific bank, check the requirements for the individual entrepreneur borrower. Typically, banks describe in as much detail as possible who they are willing to give a loan to. If you don’t meet any of the requirements, contact the mortgage manager at the bank and ask if it makes sense to waste time filling out the application.

Mortgage conditions without verified income

The most popular loan product without a 2-NDFL certificate is a mortgage based on two documents. Lending conditions for 2021 using the example of a program from VTB Bank called “Victory over formalities”:

• loan amount from 600,000 rubles;
• loan term up to 20 years;
• interest rate from 11.1% (if you agree to comprehensive insurance);
• the first payment for a new building is from 30%, for a secondary building from 40%.

The conditions differ from the standard mortgage lending parameters for salary clients and citizens who can confirm their income. But checking documents takes very little time, and the decision is communicated quickly.

Another loan product that does not require proof of income from the borrower is a mortgage secured by existing housing. Its main disadvantages are that for the duration of the loan you cannot make transactions with collateral housing, moreover, the loan amount rarely exceeds 50% of the appraised value of the property. And this greatly limits the buyer’s options.

Which banks give mortgages without proof of income?

Not all credit institutions are ready to provide money for housing to clients without official income. However, there is a choice: competition forces bankers to be more loyal to borrowers. Current loan offers:

• VTB, already mentioned above, is the “Victory over formalities” program;
• Alfa Bank - mortgage under two documents from 8.49% for a period of up to 30 years with an initial payment of 10%;
• Svyaz-Bank - involves issuing a loan without proof of income, but only for a new building from accredited construction partner companies and only in the regions where the bank operates;
• UniCredit - mortgage terms are determined individually, but not lower than 15% of the down payment and 8.9% per annum.