New apartment with maternity capital: how to buy it before the child is three years old

Maternity capital: what is it?

The only body in the Russian Federation that issues MK certificates is the Pension Fund, to which you need to apply with a corresponding application. Regulates the right to receive funds. This document, among other issues, contains explanations of how maternity capital can be used after a child is 3 years old.

Financial assistance is issued in the form of a certificate, which can be used at the discretion of the parents to improve the child’s quality of life. There is no possibility to cash out funds for your own needs.

It is also useful to know that:

• money is issued only once, regardless of the number of children in the family;
• Parents gain access to funds after the child reaches three years of age;
• financial assistance is provided for both natural and adopted children;
• the program is continued until 2026, although the possibility of receiving money later is provided if the certificate is received before the end of the established period.

Find out more about what maternity capital is and when it is paid.

How to use maternity capital?

Every year the list of purposes for which family capital can be spent is revised by the government of the Russian Federation.

But the purpose of early use has not changed so far over the ten years of the program’s existence - it has always concerned only the family’s problems with real estate.

The following situations can be identified in which parents have the right to request the allocation of funds:

• purchasing or constructing a house on credit;
• payment of the family's borrowed obligations that were imposed on it as a result of the acquisition or construction of premises for living.

In the first case, the entire amount of government assistance or part of it can be used as a down payment to repay the loan. In the second case, the type of loan does not play any role. This can be either a loan or a mortgage agreement, or any other banking transaction carried out with a legal entity registered in Russia.

Another condition to this paragraph states that funds must be used for their intended purpose.

At the specified points, the family can receive funds at any time after it is able to issue the appropriate certificate and collect a complete package of documents confirming the purposes of use.

It is important to note that money can be used not only to repay a loan or mortgage, but also to pay off interest. At the same time, the latest editions of the laws stipulate that family capital cannot be used to pay penalties or accrued fines for late deposits of funds.

Legislation on maternity capital

In addition to the main law of 2006, there are other documents that regulate the intended use of funds under the program:

1. . This document regulates the allocation of funds for the repair, purchase or construction of housing. The resolution provides for one of the cases when you can receive money before the child is three years old - repaying a mortgage loan. The sale of real estate purchased using MK requires the collection of a large number of additional documents, including from the guardianship authorities and the Pension Fund.
2. . This describes the possibility of paying for an educational institution for a child or several children using certificate funds. Tuition can be paid for for all children, not just the one who received financial assistance.
3. .
4. . This document explains how to get maternity capital in cash. According to the law, parents can receive from the body of the MK a monthly payment in the amount of the regional subsistence minimum for children (about 10 thousand rubles). This is the second case when you can receive money before the child is three years old. In addition, this law provides the only opportunity to cash out part of the funds and spend them on the needs of the child.
5. In addition, before 04/15/20, changes in legislation must be prepared and adopted to bring into force “retrospectively” changes in the issuance of maternity capital from 01/01/20, which were mentioned by the President of the Russian Federation in the Address to the Federal Assembly on 01/15/20 (issuance of capital for the first child , increasing its amount by 150 thousand rubles for the second or subsequent).

Any use of financial assistance for a child will require writing an application to the Pension Fund and providing an impressive list of certificates and documents.

Maternity capital up to 3 years for the purchase of an apartment - all available options

The methods of directing maternal capital to improve living conditions are discussed in Art. 10 256-FZ. There are also separate rules approved by the Government, everything is described there in more detail.

The main condition for terms: funds can be used at any time if the apartment is purchased with a loan or a mortgage. In other cases, at least 3 years must pass from the date of birth or adoption of the child in connection with which the right to payment arose. The date of receipt of the certificate itself does not matter.

A consumer loan is not given for maternity capital, even if it is used to buy an apartment. It is important that the loan is targeted and the bank is licensed (microfinance organizations are not one of them). The only available form of lending is a mortgage. It differs in that it is tied to the apartment being purchased. The real estate is registered as collateral, and until payments are completed, no transactions can be made with it - selling, donating, exchanging, or allocating shares to the owners. Maternity capital can be used to make a down payment, pay off payments or interest. In any case, there will be no three-year term limit. You can even pay off a previously taken out mortgage with government funds.

What to do if a child was born recently, you have money for an apartment and you want to buy it right now? I discussed this issue with the realtor. Yes, many families do not know that maternity capital cannot always be used immediately. Yes, this rule causes misunderstanding and dissatisfaction - sometimes they prepare to invest in an apartment even before the birth of the child. And there are offers to meet such demand. The point is that a mortgage agreement is drawn up, but the conditions are very different from the classic ones. The amount is given in the amount of maternity capital or a little more, the period is from 2 months to six months, the interest rate is higher than usual. They won’t be too picky about proof of income, because the loan is secured by maternity capital. The total amount of the overpayment will be from 40,000. In essence, this is a bypass of the three-year limit - without maternity capital, such conditions will not exist anywhere. But everything is completely legal, the money transfer is approved, the scheme works. Such options are not always widely advertised, but upon request the agency will find an offer. You can, of course, take out a regular mortgage for a minimum period or pay it off early, but the overpayment will be higher.

There is another option - joining a consumer credit cooperative. In form and letter of the law, it is a non-profit mutual aid association. Essentially, they are organizations offering accelerated use of maternal capital to purchase an apartment. Microfinance, but in a form permitted by law. The cooperative will issue a loan for a minimum period, real estate can be purchased immediately, and then the Pension Fund will transfer the money to the cooperative’s account. They charge a symbolic amount for joining - about 500 rubles, the money is given at interest. In order for the use of maternity capital to be approved, the organization must be in the register of the Central Bank of the Russian Federation and have been operating for at least 3 years.

Video: how to control the use of maternity capital to buy a home

Table: comparison of mortgage conditions and joining a cooperative

Mortgage conditions with maternity capital

Most large banks work with maternity capital. The biggest difficulty is that not everyone takes it as a down payment: the transfer takes time, and the fee must be paid immediately. There are also restrictions on the amount. For example, Gazprombank sets the condition that at least 5% of the down payment must be paid from one’s own funds. Without restrictions, maternity capital is included in the down payment of Sberbank, Promsvyazbank, Raiffeisen.

The term and amount of the loan are approved by the bank based on the client’s solvency. Maternity capital naturally reduces requirements. A prerequisite is an impeccable credit history.

Preferential mortgages at 6% can be taken from those banks that work with the state support program (there is a special list from the Ministry of Finance). The conditions are the same everywhere:

• the second or next child was born from January 1, 2018 to December 31, 2022;
• the maximum loan amount is 12 million in Moscow and the region, St. Petersburg and the Leningrad region, 8 million in other regions;
• maternity capital is included in the loan amount;
• housing can only be purchased in a new building;
• down payment - minimum 20%.

Large families have other mortgage benefits. At the birth of a third child, some regions give out their maternity capital - from a modest 25 thousand to a quite significant 300. They can also be used to buy an apartment. And from 2021, families with a third newborn child will have the right to a payment of 450 thousand from the state to pay off the mortgage.

Video: life situation - housing under maternity capital with a bad credit history

Requirements for housing and registration of rights to it

An apartment can be purchased from an individual or legal entity, ready-made or under construction. There are no restrictions here. But if we are talking about a mortgage, the choice of object is agreed with the bank.

The property must be located on the territory of the Russian Federation, be suitable for living and be registered as a residential premises. For example, you cannot buy an apartment in a building that is officially recognized as unsafe. Or apartments - they are considered non-residential real estate. The buyer can request characteristics of the premises from the developer or seller. And the Pension Fund will control this using its sources.

The apartment is registered as common shared ownership. A mandatory condition for using maternity capital is the allocation of shares in property rights for all family members. The law does not determine the size of shares - everything is decided by agreement. The spouse can refuse his share, but they must be allocated to the children.

By default, shares are distributed equally. For example, in a family of 4 people, each person receives ownership of 1/4 of the apartment. The agreement will allow the mother to leave 1/2, and the rest to be allocated 125/1000. Or in any other variants. Provided that all adult family members agree with this.

What is needed to obtain maternity capital

In 2021, the following are eligible for financial assistance:

1. Women and men with Russian citizenship who gave birth to or adopted a second child after January 1, 2007. From 01/01/20, parents whose first child was born will have this right. The certificate is issued to only one parent.
2. The father or adoptive parent of the child in cases where the right to financial assistance is lost by the mother or adoptive parent. A man is not required to have Russian citizenship.
3. Children under the age of majority, in cases where parents lose their rights to receive financial assistance.

Now about how you can get maternity capital after 3 years. To do this, you need to submit the following documents to the Pension Fund: application, passport, pension insurance policy, birth certificates of children (all) or court decisions on adoption. A certificate granting Russian citizenship to the child may be required if one of the parents does not have a Russian passport.

What is maternity capital provided for?

There are only four directions for using funds:

• housing: construction and reconstruction of houses, purchase of apartments, payment of mortgage payments;
• education: payment for accommodation in other cities (only in dormitories) and education in kindergartens, schools, universities;
• pension upon reaching a certain age - formation of a pension contribution for the mother;
• rehabilitation and adaptation of children with disabilities: purchase of technical equipment from strollers to cars, and payment for the services of various institutions or specialists.

Using maternity capital: when and how

The main question of interest to most families is how to buy an apartment with funds from the state. Speaking about how to use maternity capital after 3 years to buy an apartment in 2021, it should be noted that this is the easiest way to purchase real estate.

The rules of action after receiving the certificate and the child’s third birthday are as follows:

• find a residential property or repair contractor and agree on the cost;
• sign a purchase agreement, indicating deferred payment as one of the clauses;
• write a statement about the need for a transfer from the buyer’s account (according to MK) to the seller or contractor and submit it to the Pension Fund.

The request is processed within 60 days. After checking the PF transfer, the money is credited to the seller's account. If the amount exceeds the capabilities of the certificate, for example, when purchasing a home, the owner of the apartment complex is obliged to transfer the remaining money himself.

Also, assistance from the state is used to pay for tuition. By the way, you can pay for the education of all children in the family, for example, for kindergarten. Or spend funds on any child to pay for university, provided that the student has not reached the age of 25.

You can also spend money on the rehabilitation or socialization of a disabled child. This means the acquisition of equipment that makes life easier, and various services such as examination by specialists, courses of medication and treatment in specialized institutions.

How to use maternity capital as a down payment for a mortgage?

Many parents want to use maternity capital as a down payment to start paying off the mortgage taken out to purchase real estate. At the same time, not everyone understands what this deal is and what needs to be done for it.

It is important to understand that not all institutions and organizations that can issue a mortgage loan are ready to accept a down payment in the form of maternity capital.

Despite this, there are quite a lot of companies on the market that agree to such conditions, so young families can start their credit history without any problems.

Often the annual interest rate on such loans varies from 9 to 14%.

It is important to note that it is impossible to obtain a mortgage using family capital if the child is under three years old.

There is only a chance of paying off the mortgage body during this period.

This means that the family, until the child turns three years old, in any case, needs to make the down payment using other means.

While after the three-year mark, it is possible to draw up an agreement in such a way that the Pension Fund transfers funds for the first mortgage payment directly to the organization that issues them.

conclusions

The assistance program for large families is a good opportunity to improve the well-being of parents and children. Almost 90% of families eligible to receive funds use this money to purchase or renovate their home. Receiving and selling funds is quite simple.

Money will also come in handy in other cases: education, treatment, children staying in preschool institutions.

To issue a certificate, you should contact the nearest branch of the Pension Fund of Russia, not necessarily at your place of registration, with an application.