In 2021, the rate on a regular mortgage may fall to the preferential level

Young family - 2021 mortgage program. What is a mortgage under the young family program in 2021

Young people who have recently started their own family, like no one else, need their own square meters. It’s rare that anyone can save up the necessary amount to buy an apartment or a small house. This issue is subject to special attention at the federal and regional levels. According to the adopted regulatory legal acts, preferences for the construction or purchase of real estate are provided depending on the chosen method of resolving the housing issue.

The federal program “Young Family” is especially popular among Russian citizens. The newlyweds were able to take advantage of the offer for the first time in 2011. Four years later, the authorities decided to extend the state program. Today it is reliably known that it will be possible to use a mortgage for a young family in 2018 on the previously accepted conditions with minor changes.

They provide support to young spouses with mortgage lending and at the regional level. The main difference from the federal program is that funds are allocated from local budgets. Depending on the fullness of the regional treasury, the conditions for state subsidies may change, helping the newly created units of society to save additional money. It is not possible to simultaneously participate in the program at the federal and regional levels.

The country's banks also offer housing loans to young families. For example, Sberbank provides loans at 8.6% with a debt repayment period of up to 30 years. Additionally, you need to take into account that many lenders, together with developers, are happy to offer the purchase of finished apartments at a lower interest rate. If we add in government subsidies, the conditions for purchasing housing will be very affordable.

Current mortgage rates 2017-2018.

“During 2021, the average mortgage rates have changed significantly,” notes Tatyana Vlasova, “demonstrating a decrease from 10.75% to 9-9.5%, and if we consider special conditions, including subsidies, then up to 6 -7.4%.

Today, the mortgage lending market offers objectively favorable conditions - the lowest rates in the last few years, combined with a comfortable down payment of 10%. Thanks to diverse conditions and a rich assortment of mortgage products, reliable developers record high sales rates throughout the year. Market experts predict that next year will show some further reduction in rates, but no more than 8%.”

Artem Kotlovsky, head of the lending and partnership programs department at Pioneer Group of Companies, says that market expectations revolve around a mortgage rate of 6-8%.

Victoria Grigorieva, general director and partner of BEST-Novostroy, noted that today mortgage rates start at 6.9%

Young family - 2021 mortgage program. What is the subsidy amount?

Helping a large family pay off their mortgage in 2021 is not able to cover all the costs associated with purchasing housing. The size of the subsidy depends on several factors that relate to the composition of the social unit and the number of children. According to the approved rules, which will be in force until 2021, the state provides:

In order to determine the maximum amount, it is necessary to calculate what footage is needed in each specific case. There is no unified approach here, since municipal authorities in each region determine their own standard. So, for example, for Moscow this figure is 10 square meters, while for Omsk and Tyumen it is 15. It is noteworthy that even in one region the numbers may differ depending on the locality.

To calculate assistance, you can consider the following example. Two spouses with one child are entitled to receive a subsidy from the state in the amount of 35% of the cost of the purchased apartment. In the city where this social unit lives, standards have been established in the amount of 15 square meters. m per person. In view of this, they are entitled to an apartment of at least 45 square meters. Average price of one sq. m in the region is 28,365 rubles. To purchase their own home they will need 1,276,425 rubles. Help from the state will be 35% or 446,749 rubles.

Young family - 2021 mortgage program. How does the social program to help young families work?

The state assistance program is a series of activities that help Russian citizens who have recently gotten married resolve the issue of building or purchasing their own home. Mortgages for young families in 2021 are aimed at supporting individuals who are recognized as in need of improved living conditions in accordance with the Housing Code and the program itself. These include:

• Units of society that have their own real estate, but its area is smaller than required by law in each specific region.
• Families who are on the waiting list and do not have their own living space, rent housing.
• Our own savings are not enough.
• The spouses live in a communal apartment together with a sick citizen.
• Housing belongs to the category of emergency or dilapidated.

Assistance is provided to individuals who are just planning to purchase a property and for those who have already taken out a loan but qualify for the terms of the program. In this case, they can use the subsidy to pay off part of the debt to the bank or spend it on paying interest. According to the rules for providing subsidies, the amount of assistance is calculated on the date of compilation of the lists of those in need, indicated in the certificate and remains unchanged throughout the entire period.

The right of spouses to receive a subsidy is confirmed by a registered document (Certificate), which is not a security. The validity period of the document is limited to 7 months from the date of issue (the date indicated on it). The program is being implemented at the federal level by the Housing Mortgage Lending Agency, which has branches in all regions of the country. At the regional level, all issues are dealt with by the local administration, which maintains lists of those in need and controls the progress of the program and the allocation of funds.

Young family - 2021 mortgage program. Goals and objectives

Social mortgages are designed to help improve living conditions. Young spouses can buy a suitable property or build it. Participants can additionally use maternity capital, and if their own funds do not allow them to buy a home, use a mortgage loan. The funds received cannot be used to pay off fines or fees arising as a result of dishonest fulfillment of obligations under the loan agreement. Participation is permitted only once.

The main goal of the program is to provide state support to solve problems with the provision of housing for young spouses with or without children. At the same time, the state is striving to resolve a number of other issues:

• Increase the birth rate, since many Russians do not want to have children until the housing problem is resolved.
• Attract specialists to knowledge-intensive industries where earnings are low.

According to the terms, the main objectives of the social program for 2021 are:

• Providing support to needy sections of society for the purchase of their own economy-class housing or the independent construction of a residential building of similar characteristics.
• Creation of all necessary conditions for spouses to raise their own funds, mortgages or other loans for the construction or purchase of real estate.

Mortgage Young family in 2021. Where can the subsidy received be spent?

Participation in the program is on a voluntary basis, i.e. The spouses decide personally whether to use government assistance or not. The rules of participation indicate that the social program budget is formed from several sources:

• funds from federal and local budgets;
• money lent by credit institutions;
• citizens' own savings.

According to the government’s plans for the implementation of the plan, starting from 2015 and up to 2021, it is planned to allocate about 340 billion rubles, which will help solve the problems of providing housing for more than 150 thousand families registered as needy. The components of the given amount are:

• Funds from the federal treasury – 35.85 billion rubles.
• Regional budgets – 84.2 billion rubles.
• The spouses' own funds and borrowed loans amounted to 219.79 billion rubles.

The allocated money can be used:

• For the purchase of an isolated economy class apartment.
• For the construction of an individual house (payment under a construction contract).
• As a down payment on a mortgage.
• To make the last payment to the housing cooperative, after which the property becomes the property of the young spouses, confirmed by the registration of ownership.
• To pay interest or repay the principal part of a housing loan issued earlier.

Procedure for applying for a preferential mortgage

To make it more clear how social mortgages are issued to large young families and couples without children, we present a clear algorithm of actions for borrowers.

Mechanism for obtaining a social mortgage:

1. Submitting an application and a package of necessary documents for participation in the program. If the decision is positive, you will receive a participant certificate.
2. Submitting an application for a mortgage to a bank that operates under this credit line. The application can be submitted online or directly at the bank office.
3. Preliminary interview at the bank. At the interview, borrowers must provide identification documents, as well as certificates of financial status. Sometimes bank employees may also require documents confirming your right to participate in the program. It is during the interview process that it will be determined whether the bank will issue a loan to purchase a home or not.
4. Choosing housing. It all depends on the regional specifics of the program. There are regions where you can choose an apartment in any residential complex. There are those regions where the list of residential complexes is limited to developers who take part in the program.
5. Signing a preliminary purchase and sale agreement. Some borrowers ignore this stage, believing that the document is not needed to obtain a mortgage. But this is a misconception. It is best to book an apartment. In addition, this will serve as the basis for the bank to calculate the total loan amount.
6. Providing the bank with all necessary documents. Obtaining a mortgage and compensation under the program. Concluding the main purchase and sale agreement and signing other related documents;
7. Transfer of the entire amount of funds to pay for the purchase and sale agreement.
8. Signing the property acceptance certificate. Registration of ownership of the purchased object.
9. Providing documents confirming ownership of real estate to the bank. Conclusion of an additional mortgage (pledge) agreement and an insurance agreement for collateral property.
10. Registration of the pledge agreement.

And at some stages I would like to dwell in more detail.

Mortgage lending in most cases involves non-cash processing, that is, the client does not receive money in hand. The bank independently accumulates all proceeds: from the borrower, from the state, and then, together with the loan funds, transfers them to the borrower.

Who can apply for a mortgage under the Young Family program 2018

Not everyone has the right to become a participant in the state program. The newly created social unit must be on the list of those in need. As for age restrictions, the rules define the limit values. The age of each spouse or citizen who independently raises one or more children (single parent) must be 35 years old. If one of the spouses in a complete family has crossed the 35-year mark, the social unit will not be able to participate in the program.

Additional requirements depend on several factors:

• If the spouses have not acquired heirs, they must both be citizens of the Russian Federation.
• If there are one or more children, the husband or wife may be a citizen of another state.
• If a parent independently raises one or more children, he must have a Russian passport.

Young family - 2021 mortgage program. Requirements for applicants for a social mortgage

An apartment on a mortgage for a young family using the state support program can be purchased or built if the applicants meet certain requirements:

• Availability of living space. Provided that the spouses do not have their own housing or the existing property does not meet the standards adopted in the region, candidates can submit an application.
• Availability of own funds. To receive a subsidy certificate, citizens must have their own savings to pay the remaining amount. It is allowed to attract loan funds provided that the spouses have sufficient income to make monthly loan payments.
• Age of the spouses. According to the rules, a community unit can be included in the list of those in need, provided that each spouse has not reached 35 years of age at the time the decision is made to include them in the list of those in need. Otherwise, applicants have the right to rely only on their own strength or a bank loan, where the requirements for full years may be more lenient.
• Registration in the program. Mortgage loans are issued only to those young citizens who are officially recognized as in need of improved housing conditions. According to the rules, standards are determined depending on the number of members: For single parents with one child or spouses without children - 42 sq. m.
• For a social unit, the number of members of which is three or more people – 18 sq. m. for each person, regardless of age and gender.

Features of the state mortgage program

Financing of the Young Family mortgage program with state support for newlyweds is carried out using funds allocated from local budgets. As a result, each region may exhibit some peculiarities. In any case, the mechanism for implementing the program is the same.

According to the conditions, the state provides young spouses who are officially married with a subsidy of up to 30-35% of the value of real estate purchased on credit. You can buy housing with a mortgage:

1. On the secondary market.
2. At the stage of real estate construction.
3. For the construction of individual housing - houses.

It is important to remember that payment of the subsidy is permissible only once. If the spouses are already paying off the mortgage loan, they no longer have the right to use budget funds to pay off the current debt. These are the terms of the program. Please note that obtaining a mortgage for newlyweds without children is also possible, but this directly affects the amount of the subsidy. After all, if a child appears in the family, the amount of the subsidy will be increased to 35% (an additional 5% is due for each child).

The official name of the state subprogram for newlyweds is “Housing for the Russian Family.” To become a participant, you need to get on the waiting list to improve your living conditions. Money (assistance) is allowed to be sent as payment of a down payment or part of the main obligation to the bank. You can learn more about the program and benefits on the State Services website.

Young family - 2021 mortgage program. Mortgage conditions in banks

Not every person has the opportunity to accumulate the required amount of money to buy or build their own home. For this reason, it is necessary to find additional sources of borrowing. Alternatively, you can get a mortgage for a young family in 2018 from a commercial bank. According to official information provided on the websites of credit institutions, certain conditions are imposed on applicants:

• Permanent registration in the region where you plan to take out a loan. You can receive funds and subsidies only at your place of permanent residence. If spouses with children have temporary registration in another area, they cannot use help there.
• Official employment. Banking institutions require applicants to have a permanent place of work, and they must work there for at least six months. This serves as a guarantee that the person is not on a probationary period and has a permanent position (workplace).
• Certain monthly income. According to lenders' requirements, no more than half of your total monthly income should be spent on paying off your mortgage. Otherwise, there is a risk of debt formation.

How to get a mortgage for a young family

To obtain a mortgage from a bank, you need to go through several stages, which have a certain sequence:

1. Find a banking institution that, together with the state, offers the newly formed unit of society the opportunity to receive a loan to solve housing problems.
2. Contact the local branch of the selected financial and credit organization and get advice from a specialist on providing the necessary documents.
3. Collect all required information.
4. Apply for a loan by providing the prepared papers.
5. Wait for the creditor's decision on the possibility of allocating funds.
6. If the answer is positive, sign a loan agreement with insurance and transfer of real estate as collateral.

Participation in the state program “Young Family” – 2018

If there are no special issues with the issue of issuing a mortgage to a young family in 2021 through a banking organization, then to directly participate in the state program you need to adhere to a certain algorithm:

1. Submitting an application. To register those in need of improved housing conditions, it is necessary to submit an application to local authorities. The department has 10 days to consider the application, after which the applicant must receive a response.
2. Approval of lists. The mortgage is issued provided that the application was submitted before September 1, 2021. In some regions there may be slight progress, but this is rather an exception. After approval of the amount of funding, the lists are approved and potential participants are notified of the possibility of receiving a subsidy. Parents with many children and persons registered before March 1, 2005 have priority when creating a document.
3. Registration of state subsidies. Having received the certificate, you must take it to the banking institution where the mortgage will be issued. One month is allotted for this. The lender opens a special account where government support funds will be transferred. The account number and other documents must be provided to local authorities within six days. Over the next five days, specialists review the application and transfer money to an account opened at a banking institution. The lender must transfer them to the seller within five days or use them to pay off a previously issued mortgage.

Search for accommodation

Unlike the previous program, according to which it was allowed to purchase real estate on the secondary or primary market, there are restrictions under the new rules. In 2021, mortgages for young families are provided only for the purchase of housing in new buildings or for independent construction of their own home. It is not prohibited to choose a developer who, together with a banking organization, offers apartments in built houses on special conditions if the property meets the standards set by the program.

Choosing a bank and preferential lending program

Not every banking institution will provide a mortgage to a young family in 2021, since according to the rules, the lender must meet certain requirements:

• Issue housing loans for at least one year, i.e. have experience in mortgage lending.

• Have no debts or penalties for tax payments to the budget.
• Comply with the standards set by the Central Bank.
• Have no losses for the previous calendar period.
• Have a developed branch network in all constituent entities of the Russian Federation.

In the table below you can familiarize yourself with the proposals of the largest banking organizations in the country cooperating with AHML:

Obtaining a loan and preparing documents for the purchase/sale of housing

A mortgage helps solve the housing problem for those who cannot save the required amount on their own. Before contacting a lender, you can independently calculate how much you can expect depending on your solvency. To do this, it is suggested to use a loan calculator or personally visit a bank branch.

Applicants with a negative credit history should not be considered for a loan. For employees of budgetary organizations, teachers, young scientists, low-income citizens, an additional benefit may be provided - a reduced interest rate. For those parents who recently had a baby or whose spouse was called up for military service in the army, a deferment in repaying the principal debt is often provided. Before directly applying for a mortgage in 2021, you need to prepare a certain package of documents.

In addition to identification documents of the borrower, you will need:

• salary certificate;
• military ID;
• a copy of the work book.

Commercial bank programs

There are a number of banks in Russia that have developed their own lending programs for young families. In the table below you can briefly familiarize yourself with the conditions of some of them:

Russian banking organizations offer young families products that differ from other offers in such parameters as: reduced rates, absence or minimum down payment, the possibility of deferred payment without penalties, lending on preferential terms. We recommend considering various lending programs for young families and, if possible, using government subsidies.

Belousov Sergey Nikolaevich

Lawyer at the Legal Defense Board. Specializes in handling cases related to debt collectors, debt collection and bankruptcy of individuals.

List of required documents

To apply for assistance in 2021, you need to prepare some documents. The exact list of documents must be obtained from local authorities when submitting an application. As a rule, you will definitely need:

• Completed application in 2 copies. One of them remains in the hands of the applicant with the date stamped on it and the signature of the person who accepted the papers.
• Passport of all adult members. For citizens of another state - a residence permit.
• For a complete family - a marriage certificate.
• If you have children, a birth certificate for each of them.
• Confirmation of solvency (certificate in form 2-NDFL or an extract from a bank account confirming the availability of the necessary amount to pay the residual cost of housing)
• Certificate of family composition.
• Documentary confirmation that citizens are considered to be in need of improved housing conditions.

When using government assistance to pay off an existing mortgage, homeowners must bring additional documentation:

• A copy of the loan agreement with the debt repayment schedule.
• A certificate about the amount of principal debt under the housing contract and the amount of interest owed.
• A copy of the state registration certificate of the property or the construction contract.

Documentation

To obtain a six percent housing loan, the following documents are required:

• passport;
• military man (or document on deferment for male borrowers up to 27 years old with proof of income);
• one of the documents to choose from: SNILS, driver's license, ID card of a military officer or federal service employee, international passport;
• confirmation of income: for hired workers – work book (employment contract), 2NDFL certificate for six months; for individual entrepreneurs – registration certificate, declaration for the last year;
• Saints for all children.

On a note! When submitting an application, the bank can approve a mortgage based on two documents without changing the interest rate.

Young family - 2021 mortgage program. Advantages and disadvantages

Helping a young family pay off their mortgage in 2021 has both its positive aspects and disadvantages. If we talk about the advantages of the state program, then it is worth mentioning the opportunity to solve your housing problems without having the required amount of funds. The permanent devaluation of the national currency makes the program even more attractive, because the loan is issued exclusively in Russian rubles.

Among the main disadvantages, it is worth noting the strict requirements for applicants. Additionally, it is worth taking into account the imperfection of the program in terms of distribution of funds, because it is more difficult for a single parent with children to pay off a housing loan than for a young unit of society where both spouses work. For this reason, changes to government regulations are possible at the legislative level.

Source of material Young family - 2021 mortgage program.

Preferential mortgage during the coronavirus epidemic

In connection with the application of measures to ensure the sanitary and epidemiological well-being of the population during the spread of the new coronavirus infection, Mikhail Mishustin, Chairman of the Government of the Russian Federation, signed Resolution No. 566 on April 23, 2021 on lending secured by purchased housing at 6.5% per annum. The program will last until November 1, 2020. Moreover, the reduced rate will remain for the entire loan term. The loan amount will be no more than 8 million in Moscow and St. Petersburg, as well as up to 3 million rubles in other regions of Russia (Rostov, Nizhny Novgorod regions, Krasnodar Territory, Novosibirsk, Omsk and others) for the purchase of apartments in new comfort-class buildings. According to the head of state, this approach will support the construction industry, which is experiencing difficulties during the pandemic.

Conditions:

• the mortgage loan is issued in Russian rubles;
• loans at 6.5% are issued upon concluding contracts from April 17 to November 1, 2021;
• Only a citizen of the Russian Federation can become a borrower;
• debt repayment is carried out monthly, in equal parts;
• obtaining a loan under this program is possible once in a lifetime;
• If you take out a mortgage loan earlier, you won’t be able to take out another one.

The new program will not replace existing ones. For example, families with children will be able to continue to qualify for a mortgage loan to purchase a home at a rate of up to 6%.

Down payment - at least 20%. The difference between the market interest rate and the 6.5% paid by the borrower is paid by the government. This program will allow banks to provide up to 250 thousand new loans for the purchase of housing.

New buildings with comfort-class apartments are distinguished by the following features:

• improved layout when compared with economy class real estate;
• use of high-quality materials for construction and finishing of premises (in addition to panels, monolithic bricks are used);
• increased security: organization of security, metal entrances and doors to apartments;
• ceiling height from 2.7 m;
• well-groomed local area;
• accommodation in residential areas.

The minimum area is 34 m2 for a one-room apartment.