Social mortgage: types, conditions, young family program

Regional social mortgage programs

A social mortgage can be issued under a federal or regional subsidy program. And if federal ones are general for the whole country, then regional ones are relevant only for a specific region.

The government of each constituent entity of the Russian Federation has the right to create its own social mortgage lending programs for certain categories of citizens. That is, in one region there may be one preferential category, in another several, and in a third no benefits are provided at all.

Who can benefit from benefits in different regions:

military personnel;
state employees;
teachers;
doctors;
scientists;
large families.

Which social mortgage options are available in your region - check with your local administration. If you meet the conditions of a program, you can apply for a preferential housing loan at any bank in the region.

Social mortgage in Moscow

A separate social mortgage lending program has been created for residents of the capital, information about which can be found on the website of the Moscow Mayor. Citizens who registered as needing improved housing conditions before March 1, 2005 can receive special conditions.

The essence of the benefit is that the city government creates a list of municipal housing that it sells under the program at a discounted price. A formula for determining the price has been derived; the exact cost depends on the number of rooms, area of the apartment, area, etc.

The longer a Muscovite is registered as needing housing, the cheaper the apartment costs.

Decree of the Moscow Government on approval of the calculation methodology →

The real price of an apartment turns out to be 3-5 times lower than the market average. In addition, a 30% discount is given if the family has three or more children or a disabled child. If a third or subsequent child appears in the family with an existing mortgage, you can also get a 30% discount (the money will be used for partial early repayment).

What kind of mortgage is this?

You can acquire your own housing using your own funds, if you have any, or you can resort to the help of banks and use mortgage lending. But what if your income does not allow you to use any of these methods? Social mortgage comes to the rescue. It is precisely this that exists in our country to solve the housing problem of citizens with average and low incomes.

What is the difference between a regular loan and a preferential loan? The first is issued by a commercial bank to the client, who repays the loan and interest on it with his own funds. It follows that the consumer can only rely on his own strength. At the same time, the annual rate for using borrowed funds and the down payment will be quite large. The social mortgage agreement will include a third party to the agreement - the state. Here his role is to support the interests of both parties: reimbursing the bank for its commercial benefits and providing citizens of the Russian Federation with affordable housing.

Social mortgage lending is a government program, which is implemented at the subject level. Therefore, in each region it has its own characteristics, which can be found out in the local authorities at the place of residence, or in the AHML.

What is the point of social media? The point is that the housing and social mortgage will be issued with some kind of support from the state budget. And how much depends on which category of beneficiaries you qualify for. In essence, social mortgage is a complex concept that includes a number of government support programs for the population as part of solving the housing issue. They are very often confused and mixed into one concept.

The concept of “social mortgage” should be divided into a number of derivatives:

Social mortgage in banks and partners of AHML (mortgage that provides a number of benefits on the rate, mortgage term, size of the monthly allowance, etc. to employees of socially significant and budgetary institutions, as well as large families).
Subprogram “Housing for the Russian Family” (allows you to get a discount on an apartment from development companies that participate in the program, those in need of improved housing, low-income people and, again, state employees of various levels, as well as young families with children. The mortgage rate remains within the framework of the bank’s standard programs ).
The “Young Family” subprogram is federal and local (you must obtain a certificate of participation in the program in order to be recognized as needing improved housing conditions, then the state will provide a subsidy for the purchase of housing up to 35% of the cost of the apartment).
Regional subsidies (for example, the Republic of Tatarstan, where there is a reduced interest rate on mortgages and a discount on housing).
State support programs for military personnel, maternity capital.

In certain cases, state assistance will amount to 10-50% of the cost of the apartment. There are regional subsidies that reimburse 100 percent of the price of housing, and the citizen only has to pay interest to the bank. For young people, such support can amount to 30%, and for young families with children – 35% of the market value of the home.

The following conditions of social mortgage exist:

Lowest interest rate possible. Today, it is 7.55%;
Minimum down payment 10%;
Longer loan term;
Subsidies from budgets of different levels to reimburse part of the cost of housing. One example is compensation of monthly social mortgage contributions for some state employees during the entire loan term;
Deferment of payment or restructuring. In different cases from 1.5 to 3 years;
Reducing the monthly payment by refinancing;
Construction of economy-class real estate with state support and its sale at preferential prices to certain categories of citizens;
One-time subsidies for improving housing conditions. One such example is maternity capital.

How to get a social mortgage in Moscow

If you meet the conditions of the program, that is, you registered as in need of improved housing conditions before March 1, 2005, you can initiate the registration of a social mortgage.

How it goes:

You contact the Moscow Property Department directly or through the MFC and submit an application to make changes to your personal file. You also indicate there that you intend to take out a social mortgage. The application is signed by all family members.
The department verifies and confirms your eligibility, after which you are given a choice of three family-friendly accommodations. If after inspection none of them are satisfactory, inspection of the next ones will be possible only next year.
Choose any bank that issues mortgage loans. Go through the standard mortgage application process.
If the bank has given approval, you enter into a purchase and sale agreement with the Department and register ownership.

Despite the fact that this is a social mortgage, an encumbrance is still placed on the purchased apartment. It becomes the property of the family: and if you do not fulfill your loan obligations, you can lose the roof over your head.

How to apply

First of all, you need to make sure that you are included in any category of beneficiaries. Depending on the type of program, contact the authorities and/or the bank first. If so, then the next step is to collect the necessary documents.

The basic list of these includes:

application for a social mortgage;
a copy of the applicant's passport;
certificate from the place of work about income in form 2NDFL;
a certified copy of all sheets of the work book;
a document confirming the applicant’s need for housing or improved living conditions;
a document stating that you are in line to resolve the housing issue with local authorities;
an extract from the house register or a certificate of family composition;
Marriage certificate;
children's birth certificates.

This list is basic and basic for all categories of beneficiaries and is supplemented depending on which social program suits you. You can find out more about what other documents are needed from other articles on our website.

You will need a special certificate in order to become a participant in the Young Family program in 2021. You must notify local authorities and the bank of your intention to receive a preferential loan to purchase an apartment and be included in the final list.

When the lists of such participants are formed, the municipal government receives money from the budget for subsidies and distributes them. By that time, you will need to provide a loan agreement already drawn up with the bank.

Federal social programs

These social mortgage offers are already available throughout the country. No matter what city or region you live in, preferential housing loans are available everywhere under special programs.

The most common benefit is maternity capital. If you have the right to receive it, you can take out any mortgage for the purchase of residential property and use government subsidies. Matkapital works together with other social programs without exception.

What social programs for mortgages exist:

Family mortgage for families with children;
Rural mortgage;
Mortgages with state support for new buildings.

Social programs are temporary, they have an expiration date. Upon completion, the program is either terminated completely or extended. And the list of social mortgages itself can be updated regularly.

Buying housing in new buildings

The most popular social mortgage today is with state support for the purchase of housing from developers. This could be an apartment or a house, a finished or under construction project. Its location does not matter - anywhere in the Russian Federation.

The social program was created in anticipation of the peak of the coronavirus pandemic. This is a special government support measure for people who were planning to take out a mortgage.

The pandemic caused a reduction in household incomes, and many were forced to abandon the idea of purchasing a home on credit. To support the construction industry and Russians, the government introduced social mortgages for new buildings.

Terms of a transaction:

purchasing real estate from a developer;
loan amount for Moscow and St. Petersburg and their regions - up to 12 million, for other cities - 6 million;
down payment - from 15%;
a preferential rate of 6.5% is established.

There are no more requirements. There are no criteria for the borrower or the type of property. Anyone can take advantage of a social mortgage for new buildings. The program is valid until July 1, 2021

Some banks give even better conditions. We recommend considering the offers of Alfa-Bank, Sberbank, VTB. The same Sber generally offers a rate of 0.1 or 2.05 for the first 1 or 2 years. So, you can make a deal even cheaper than 6.5% from the state.

List of documents required to obtain a preferential mortgage

Before going to the bank for a preferential mortgage, you will have to collect an impressive package of documents. It includes:

Passports and SNILS of parents, birth certificate of the child.
Papers confirming the status of a disabled person of group 1, 2 or 3.
Certificate of marriage or divorce.
A certificate confirming the consent of government authorities to provide subsidies.
Papers certifying the parents’ income level and their length of service.
Marriage agreement, if available.

IMPORTANT
The documents are also accompanied by a borrower's questionnaire and an application for a preferential mortgage for families with disabled children. A financial institution may also require additional documents, for example, a bank account statement, copies of work records, and others.

Rural social mortgage

The program was created for citizens who want to buy real estate in rural areas. This could be a house or apartment, a primary or secondary market property, or you can take out a mortgage for the construction of your home.

Conditions:

loan amount - up to 3-5 million rubles depending on the region;
down payment - from 10%;
term - up to 25 years.

Under the terms of a rural social mortgage, the state subsidizes the interest rate; as a result, the borrower enters into an agreement at only 2.7-3% per annum.

Banks receive limited subsidies under this program. So, at Sberbank the volume has already been completed; applications for this mortgage are not accepted. The situation is similar in many large banks.

How to get in line

The procedure will vary depending on the social group to which you are assigned. But the standard scheme is as follows:

First, you should make sure that you belong to a specific category of beneficiaries.
Then a package of papers is formed and an appeal is submitted to the authorities or to the bank.
After generating lists for receiving social mortgages for public sector employees, apply for a loan.
Before receiving money from the state, you must submit a loan agreement to the municipality.

Military personnel will be able to take out a public sector mortgage after joining the NIS (Savings System) program. From it, funds are transferred to the bank.

Successful completion of the initial check means entry into the queue. But it may take several years. Based on the results, you will receive a certificate of participation in the program. You need to come with it to AHML, where they will provide a list of financial organizations working under the social mortgage program. The decision to be included in the lists is made on the basis of the papers provided by the applicant.

Recommended article: Responsibility, rights and obligations of a co-borrower under a mortgage

Program for families with children

Another popular social mortgage among Russians, which has already been used by thousands of families. If a second or subsequent child is born in a family after January 1, 2018 or later, the right to obtain a mortgage at 6% per annum arises.

Under the terms of the program, you can purchase a property only from the developer, with a down payment of 15%. If the family already has an existing mortgage, then when the right to the benefit arises, it can refinance.

All banks whose offers are available on Brobank.ru issue social mortgages. Everyone is authorized by the state to work with social programs. So, you can choose any one and apply immediately.