Applying for a mortgage on a house at VTB Bank: requirements for the borrower, advantageous programs

Mortgage for the construction of a private house: conditions

The conditions are practically no different from the conditions for obtaining other loans.

• Age not younger than 21 and not older than 75 (the upper limit varies from bank to bank).
• The borrower must have a regular income, for which a certificate from employment is provided.
• Of course, the job must be official, you must work in it for at least six months, the total length of service is at least a year, only the last five years are taken into account.

• Availability of a certain amount for a down payment. In this case, the contribution is usually higher than when purchasing a finished home. This can be explained by the fact that the bank takes a certain risk by investing in a house that does not yet exist.
• Availability of collateral. Since there is no house yet, it is not registered, there must be other real estate that the bank will accept as collateral while the house is being built. This could be the land on which construction is taking place, other finished housing, or the house itself, if it is almost completed, and a loan is taken out to complete the work.

Before taking out a mortgage to build a private house, carefully assess your capabilities and calculate the required amount. It is not advisable to take out more than you need due to the rather high interest rates.

As soon as the house is completed, you can come to the bank and renew the contract, making this very house collateral. Then the bank will recalculate the interest and offer you more favorable conditions.

Despite the fact that entrepreneurs usually earn much more than employees, taking out a mortgage loan is a real problem for them. A mortgage for the construction of a private house for individual entrepreneurs has a number of features. Firstly, the individual entrepreneur has no salary and no income certificate either. This is such a strange fact: entrepreneurs are essentially unpaid, their income depends on business development, tax deduction, etc. Banks believe that their solvency is much more questionable than that of public sector employees, for example.

Financial institutions seek to protect themselves from risks, so they increase the interest rate for such borrowers. However, Sberbank and VTB24 are not inclined to impose any different requirements on entrepreneurs than on any other borrowers. Although individual entrepreneurs who use a simplified taxation system fall into a special category, since it does not allow income to be calculated. They are given loans with particular reluctance.

The bank may require a huge number of additional documents: statements, certificates, business reports, declarations, etc.

Features of land mortgages

A mortgage on a piece of land involves a number of features that are not typical for mortgages on other real estate. They are associated with the characteristics of land as real estate and with lower liquidity and higher risks for the bank. Here are some of them:

1. The right of the person who took out the mortgage to build on the site without informing the bank. But sometimes the need for information is provided for in the contract;
2. Higher loan rate compared to loans for land acquisition (Reason - low liquidity of land);
3. Larger entry fee – it is 30% or more;
4. Shorter loan term;
5. Impossibility of pledging a separate part of a land property. If you want to become a co-borrower, you will have to, at the bank’s request, draw up documents on the consent of all other owners of the site;
6. The need to pay for a number of additional services (on-site visit of bank employees, expert appraisers, notary fees, commission for opening a credit account at the bank).

Mortgage for the construction of a private house: documents

The papers required before obtaining consent differ slightly from bank to bank. This is a questionnaire, passports, income certificate, etc. After loan approval, documents may be changed and supplemented.

• Passports of all parties to the agreement, that is, yours, your spouse, those who are co-borrowers and guarantors. Copies with registrations;
• A certificate from your place of work indicating your income, if the salary is not received on the card of this bank;
• All papers relating to the collateral (certificate of ownership of land or other housing);
• Construction plan for the future house and other documents for it;
• Down payment (proof that it exists);
• Marriage and birth certificates if required.

The bank may require some additional papers on an individual basis (certificate for maternal capital, certificate of account status, military ID, etc.)

Don’t think that the bank takes your word for it, issues money and forgets about you, as long as you pay correctly. Credit institutions monitor very closely where their money is spent, so you won’t be able to spend it on anything else. For this purpose, the bank may not issue the whole amount, but pay it in parts as the work progresses, and also require the presentation of documents confirming that the money was spent specifically on the construction process: a contract for the work, an estimate, etc.

Problems and nuances

It is generally accepted that a townhouse is a two-story house, divided in half, fully furnished like an apartment (mostly made of brick) with a small plot of land. As a rule, such houses are united into a separate village with a uniform architecture.

The law distinguishes several types of housing, for which a townhouse is usually “customized” according to documents:

• a separate block section of an individual residential building with a dedicated land plot;
• share in a house for individual residence with a share in a common plot of land;
• apartment in a low-rise apartment building.

Another concept - a cottage - is as abstract as a townhouse. But the cottage is also customized to fit one of these three concepts.

When choosing, you must carefully study the documentation:

• To what extent does the intended use of the land comply with the permitting documentation? For example, the state issues a developer a permit to build an individual residential building, and he builds an apartment building.
• Title documents for land. Is the land leased or owned? If owned, how will it be transferred to the buyer, etc.
• Home decoration. Depending on how the housing is legally registered, you can understand which bank you can work with and under what program, as well as whether there will be problems with registering the transaction.
• Seller's documents: is everything in order with the seller's documentation?

When buying a secrethouse, many questions arise . A wrong choice promises huge losses and problems in the future. How to buy a townhouse with a mortgage?

You can register the rights of the buyer of such real estate in different ways: the best option is to register it as an apartment, but it is also possible to register the buyer’s rights to an unspecified part of the house with a plot or as joint shared ownership.

The first option is familiar to banks and usually does not raise questions, but joint shared ownership in most cases is not approved.

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Therefore, it is better to look for suitable options not in a branch of a credit institution, but in the developer’s office, where the client will be told about the different options for obtaining a mortgage loan for a townhouse.

Block section of a house with allocated land

A townhouse is allocated as a section for each owner with the obligatory definition of a plot of land. According to the documentation, the residential area will be constructed as an individual residential building with its own plot of land. However, there will still be one or two neighbors in a common house behind the wall.

Registration of land and its purpose:

1. Land use type . If the townhouse is located in a community, the chance of getting a mortgage increases significantly.
2. Availability of land surveying . It is necessary to carry out land surveying and determine the boundaries of the site. Quite often, a plot of land for townhouses is sold as a share in the common plot of land for the entire village. This option will not work, since according to the bank’s requirements, the plot must be given as collateral, and other owners of townhouses will not agree to this.

Sberbank: mortgage for the construction of a private house, conditions

The constant leader in issuing mortgages, Sberbank, offers quite favorable lending conditions, but still increases the interest rate compared to the purchase of finished housing. When you take out a mortgage to build a private home, the interest rate depends on how large the down payment will be and how long you plan to pay off the loan. The shorter the term and the higher the contribution, the lower the interest. For example, if you take out a mortgage for up to 10 years and pay off more than half the cost of the home at once, your interest rate will be 13.5%. Whereas for a period of 20 years it will be 13.75%.

Sberbank does not issue loans for construction below 13.5% per annum. The amount must be at least 300 thousand and no more than 70% of the total cost of housing. The interest increases under certain conditions: if the salary is credited to the card of another bank, the borrower’s life is not insured, etc.

A mortgage for the construction of a private house in Sberbank requires compliance with the same conditions as for the purchase of housing: age of at least 21 years and not more than 75 years, work experience of at least six months, availability of a down payment, etc. The legal spouse necessarily acts as a co-borrower. There is a separate program for young families, which offers more favorable conditions. There is no processing fee.

Conditions and types

To build a house, you can take out not a mortgage, but an ordinary non-targeted consumer loan. VTB 24 provides three types of such loans. They are more acceptable for borrowers who want to build a house on a plot of land rather than buy an apartment:

1. "Large" loan.
2. "Non-target mortgage loan."
3. Loan “Collateral Property”.

The listed types of loans differ in the conditions for taking out and repaying the debt provided by the bank. We will now look at them in more detail.

Loan "Large"

This type of loan is convenient because the borrower can take out a large amount of money with a reserve (after all, construction materials and work services are becoming more expensive every day) without disclosing the purpose of borrowing funds. Such a loan has a small interest rate, and it can be reduced even by a couple of points, provided that the borrower receives a salary from VTB 24.

A person can use borrowed money at his own discretion, and if he refuses to buy land or build a house, he can buy an apartment and there will be no problem. This is a big plus of this loan program.

Advice! We also reviewed loans provided by VTB 24 for individuals.

Non-target mortgage loan

A non-targeted mortgage loan is very similar to a “Large” one, but it only has certain differences in terms of borrowing and payments:

• Mandatory presence of collateral.
• Borrowed funds must be taken in an amount not exceeding 70% of the value of the collateral provided.
• Longer loan repayment period.
• The debt can be repaid early without paying penalties.

This type of loan is in greatest demand among people who want to build their own personal home.

Further advantages of this loan in comparison with others will be considered.

Loan "Collateral"

VTB 24 often takes the collateral property as debt repayment, and then puts it up for sale to compensate for its losses. This group of real estate includes land plots with private houses or simply the houses themselves without land (land is sometimes rented separately from real estate).

If you find a suitable home for yourself in the catalog of collateral real estate, then you can safely take out a loan for it, and you don’t even have to build anything yourself, just remodel the house for yourself.

Showcase of collateral

The big advantages of this loan are:

• Reduce the interest rate by one point when taking out an insurance policy.
• The down payment for a mortgage of such a plan is only 20% of the value of the property.
• Constant and fixed rate for the entire loan period.
• The opportunity to repay your debt to VTB 24 ahead of schedule and not pay fines for it.
• There are no fees for issuing money.

The loan can be used only for the purchase of a specific home as collateral, and in case of non-payment the debt will be returned to the bank again.

Loan for the construction of a private house: Rosselkhozbank

It should be said that Rosselkhoz Bank does not create separate programs for each lending object. The conditions are formed individually, based on the qualities and requests of the borrower. The down payment must be at least 15% of the cost of housing. The duration of borrowing is slightly lower than at Sberbank - a maximum of 25 years. The amount can range from 100 thousand to 2 million rubles, depending on the borrower’s requests and income. The borrower's age must not exceed 65 years.

You can attract up to 3 co-borrowers. Home insurance is required. The collateral can be the right of claim, the house itself after it is ready for occupancy, as well as other real estate. The percentage until the house is completed is usually higher. After renewing the contract, the conditions become more favorable.

A mortgage for the construction of a private house at Rosselkhozbank allows the use of maternity capital funds in any capacity: as a down payment or as a means of repaying a loan. Young families after the birth of a child are given a 3-year deferment, when they only need to pay interest and not the principal.

If you take out a loan in installments as you complete construction stages, this solution will be most profitable for you. Interest is calculated only on the amount received. In this way, the bank protects itself from risk, and you reduce your payments. When a mortgage is issued for the construction of a residential building, Rosselkhozbank carefully ensures that the money is spent specifically on construction work. Bank employees may request your documents, regardless of whether you build it yourself or contact a company.

Is there a special program?

At the moment, the bank does not have mortgage lending programs for the purchase and construction of houses, both with and without land. This is explained by quite logical reasons. When providing mortgage lending, the bank takes into account the liquidity of real estate, and in the case of apartments it is significantly higher than with houses.

If the client violates the procedure and amount of payments, the institution can demand reimbursement of the loan by selling the apartment. In the case of a house, it is much more difficult to calculate the price and time of sale . This is due to the fact that houses are mainly located on the outskirts of the city or outside its boundaries (which reduces the liquidity of the property), and other factors: depreciation, poor quality work performed during construction, and so on.

Therefore, it is difficult for a credit institution to predict possible options for debt repayment in the event of non-payment of a loan.

However, you can still buy a house with borrowed funds using the non-targeted loan program.

Mortgage for the construction of a private house: VTB 24

The bank offers its clients a program called “Construction of a house secured by a land plot.” The name itself contains a requirement: the land must be owned by the person wishing to receive a loan at the time of submitting the application.

You can count on an amount of 490 thousand rubles. Interest rate from 12.75%, term – up to 30 years. The undoubted advantage of this program is that the bank does not require a down payment, a registration fee, does not check your income and quickly reviews applications within 3 business days. However, the requirements are also high and there are quite severe penalties for late payments. The interest rate is also considerable; under certain conditions it can reach 17.15%.

The borrower's age must be between 21-60 years. He must have worked at his last job for at least a month.

Property insurance is required. The land and all buildings and structures on it act as collateral. It is worth remembering that these conditions exist mainly in Moscow; in other cities of Russia, requirements and rates may change.

Mortgage of land plots: land law

The relationship between the parties under a mortgage agreement is regulated by the Federal Law “On Mortgage (Pledge of Real Estate)” (adopted on June 16, 1997). The intricacies of mortgages on plots of land are covered by Chapter IX of this law. It determines which areas can be mortgaged and which cannot. Mortgages are available for plots owned by individual citizens and their associations and legal entities. The plots must be intended for gardening, livestock raising, construction of personal garages, housing, summer cottages, and homesteading.

You cannot take out a mortgage on a plot whose area is less than the minimum required by law (102-FZ dated July 16, 1999). Mortgages are not issued for the purchase of land owned by municipalities or the state.

Mortgage for the construction of a private house: Gazprombank

Gazprombank undoubtedly has its advantages. It is a reliable financial institution. The bank offers everyone who wants to build their own home a loan of 15% per annum for up to 30 years. You can take a minimum of 300 thousand rubles, a maximum of 4.5 million rubles.

Like any bank, Gazprombank will carefully study all documents on the future home, plans, projects, and their compliance with standards. After all, until the end of payments, the house will be pledged to the bank.

After submitting the application, the bank client must present documents confirming that he is the owner of the land plot, which can be used as collateral until the completion of construction work.

The house project that you submit to the bank for verification must be completed by an official construction company that has the appropriate license. The documents must have all the necessary seals and signatures.

The borrower must be a citizen of the Russian Federation from 21 to 65 years old with at least a year of work experience. The client's solvency will be checked not only through a certificate of income from the place of work, but also through a credit history. Only after assessing and checking all the documents, the borrower receives a final answer and can search for a construction company that will carry out the work on an official basis.

Stages of obtaining a mortgage loan

To apply for a mortgage loan for a townhouse, you need to go through a number of steps:

1. Find a bank with optimal conditions, evaluate various programs.
2. Submit an application, preferably to several banks at once.
3. Wait for the results of the application review. The decision should be made within a week.
4. Select a suitable option, involve lawyers in checking the property and preparing documents.
5. Prepare documents and submit to the bank.
6. If the bank gives its consent, sign the agreement and make a down payment.
7. Register the transaction in Justice of Law.
8. Get a mortgage, transfer money to the seller.

Mortgage for the construction of a private house: Raiffeisen and Rosbank

Raiffeisen Bank does not have a separate program for building a house, but it is possible to take out a non-targeted loan secured by existing housing and spend it on construction or repairs at 17% per annum.

The terms of such mortgages are short, up to 15 years, but the amounts vary - up to 9 million rubles. In this case, the amount issued should not exceed 60% of the value of the mortgaged housing.

Rosbank is also one of the largest banks. It offers mortgage loans for almost all types of housing.

Rosbank issues a mortgage for the construction of a private house on the security of existing real estate. Land is cheaper than an apartment or house, so Rosbank does not consider land alone as collateral. If you do not own any housing, you will not be able to get a construction loan from this bank. The interest rate starts from 11.75%, of course, it can increase depending on the specific situation.

Before receiving money, you need to deposit at least 15% of the cost of housing. The loan is issued for a period of no more than 25 years. This also takes into account the age of the potential borrower (no more than 64 years at the end of payments, no less than 21 years at the time of application), and his income.

Rosbank does not work without a down payment. A client participating in a certain preferential program must contribute at least 10% of the cost of housing or use existing maternity capital for this purpose.

Mortgage repayment

There are several ways to make your monthly mortgage loan payments:

• Repayment through VTB without commission is carried out by depositing cash through a bank cash desk or ATMs; You can also pay using VTB Online.

  

• Repayment by wire transfer from accounts opened in other banks is subject to the sending bank commission established for ruble transfers.
• Repayment through branches of the Russian Post and the Zolotaya Korona-loan repayment network is carried out with a commission depending on the amount of the monthly payment and established tariffs (usually 1.9 and 1%, respectively, but not less than 50 rubles).

  

For all repayment methods, VTB does not charge a commission for crediting funds to the account.

When repaying a loan through third-party organizations, by transfers from other banks, it is necessary to take into account the timing of these operations and make payments in advance (based on reviews at least a week in advance).

VTB mortgage borrowers can repay their loan early: partially or in full, without commission payments, penalties and other restrictions through bank branches or through VTB Online.

What documents need to be collected

Full article: Complete list of documents for obtaining a mortgage at VTB

When submitting an application form, the applicant is required to provide the following information:

• Place of registration;
• Passport data (original and copies);
• A copy and original of the work book (the duplicate must be certified by the employer);
• The financial status of the applicant (including additional income);
• Information about the desired acquisition (technical passport of the site, plan, other documentation);
• Documents confirming the right of ownership of the collateral property (if there is a co-owner, then his official consent will be required).

At the request of bank representatives, you may need a certified copy of the employment contract, as well as design documents for future construction. These include: land valuation, cadastral extract, Unified State Register, as well as a technical passport.

The guarantee requires the collection of related documentation: passport data and financial status.

If the monthly payment exceeds 40% of the borrower’s average income, the bank will refuse to provide the service or require two guarantors to be included in the agreement who are ready to take part in its execution.

Questions to think about in advance

Before starting to take out a mortgage to build a house, the borrower should plan how much savings he is willing to make as a down payment should the need arise. You should accurately calculate the loan amount and the time period required to fully repay the loan.

The borrower must decide on the system for depositing funds into the debt account: annuity, differentiated. The first method involves making equal monthly payments. The second is decreasing every month.

When choosing a differentiated method, the client must, before making the next payment, clarify the amount of the amount required to be paid at this stage of the mortgage agreement. Details regarding the method of debt repayment are specified in the contract.

If desired, the entire loan amount can be repaid ahead of schedule; the client must submit an application in advance (30 days).

The operation is permitted after written approval by the bank of such actions. Otherwise, the client will be charged a penalty for early repayment of the debt.

After the mortgage is completely closed, the borrower should receive a statement confirming the fulfillment of the agreement and the absence of claims from the bank against the client.

As of today, this program at VTB is suspended. The reason was a number of ongoing improvements to the program in accordance with changes in the economic market. Some conditions will undergo minor updates. Currently, consumer lending is in demand.

Features of consumer credit

Compared to mortgages, consumer lending has some advantages. For example, there is no requirement to use your future home as collateral or make a down payment. The bank provides the opportunity to obtain a “Large” loan. The client has the right to count on a loan in the amount of 400,000 rubles to 5,000,000 rubles if he receives a salary on a VTB card. The debt repayment period ranges from 6 months to 5 years. Regardless of the size of the debt and the time of its payment, a single interest rate of 16.5% applies (for salary card holders).

Article on the topic: 3 lending programs for salary card holders from VTB

In this case, the bank independently makes a decision on the amount of the borrowed amount, based on the credit history of the applicant and his level of income. In some cases, it may be too small to carry out construction work and purchase materials.