The implementation of maternity capital is carried out by the state to families with the advent of the 2nd child over the past decade. Three years after the appearance of the right to a family certificate, state funds are directed to the family’s targeted needs: education, retirement savings, and housing improvement. You can get loans for maternity capital without waiting for the period set by the state.
What is a maternity loan?
Issuing a loan under matkapital means borrowing money from a credit institution by a parent who has a family certificate. Despite the wording, the “target loan for maternity capital” does not imply the actual receipt of funds, they are only redirected to repay credit obligations, subject to certain conditions. One of the main limitations that protect the interests of children is the inability to cash out the maternity capital.
The procedure for granting matkapitala loan consists of several stages, so quickly repay the debt does not work, as a rule, we are talking about 1-2 months. If parents decided to buy more spacious housing, then they have to undergo thorough training in three areas at once:
- property purchase;
- signing under the mat. loan agreement capital;
- coordination of the direction of state funds to repay the loan.
Under such a loan, the parent holding the certificate may:
- use the amount to pay the debt to the lender;
- to spend money from the budget as a first mortgage payment.
Loan under the mat. capital is a multilateral procedure and involves three parties: the FIU, which authorizes the transfer of funds, the parent and the credit organization.
The success of the allocation of capital to the bank’s borrower depends not only on the active actions of the parents, but, above all, the FIU, which decides whether the use of money for the purchase or construction of housing is reasonable. The absence of a positive response from the FIU makes it impossible to further the lending procedure. It is important to find out in time what mother capital is and how it can be spent.
It is necessary to thoroughly understand each of the stages of obtaining funds from the budget, issuing a loan under the maternity capital and paperwork in order to ultimately use your legal right.
You can count on repaying part of the debt to the creditor by the parent capital in the following situations:
- the purchase of new buildings, apartments from the secondary fund;
- construction of the house on its own or with the involvement of contractors, if you have all the necessary building permits, and the object being constructed has an area that meets the standards;
- reconstruction of the house, major repairs in order to expand housing.
The way of capital sale can be:
- making a down payment on a mortgage;
- repayment of the main loan debt (without interest);
- interest payments, if such a measure is specified in paragraphs of the mortgage agreement.
It is important to correctly indicate the purpose of budget financing in the text of the contract with the bank in order to exclude the refusal to transfer from the FIU. If the loan is issued as a consumer loan, it will not be possible to realize the capital, even if the funds cashed out will be used to obtain housing.
Detailed consideration of each of the situations will allow to successfully overcome all barriers in agreeing payments.
Home loan or construction
A loan to buy a house as an option to improve living conditions is very popular and in demand. Many families live in rural areas, and even the townspeople, in whose families children grow up, tend to settle in spacious and comfortable private houses.
It is possible to realize capital for the purchase of a house in the form of making the first installment for a house or repaying a loan debt on an already completed loan.
When it is planned to build a house on its own, additional approval and the availability of permits will be required. Considering such an application, the Pension Fund will verify compliance with all standards established by the state for the normal residence of all family members.
The most frequent reason to apply to the FIU is an application for approval of the transfer of money in order to repay a loan issued for the purchase of urban housing in new buildings or from secondary housing stock. Mortgage agreement with the bank takes place in the framework of the standard procedure, supplemented by a subsequent appeal to the FIU.
Real estate reconstruction loans
When the family already has its own home, the funds of the capital can be used to modernize it and improve its basic characteristics. Maternity capital, a loan for which is made out in a bank, can be used to carry out restoration work, expanding the area. The conditions for coordination with the FIU will be the observance of housing standards, the actual improvement of living conditions, the availability of all permits for repair and maintenance.
It is important to distinguish between the areas of applicability of matkapital in this area: construction work should improve technical performance, increase operational efficiency, and simple repairs to repair the facade, replace equipment, and update wall coverings are not compensable.
But, if the target loan for maternity capital implies an increase in the size of the rooms, an extension of the usable area, the attachment of additional footage, the building up of floors, the conversion of the attic into the attic – a similar use of money is coordinated. It is also allowed to send funds for payments for shared construction.
Conditions of receipt
When preparing to agree on the use of maternity capital, you need to know how to get a maternity capital loan with minimal risk of failure:
- Buying a home using matkapitala implies the mandatory allocation of equal shares of the whole family.
- Matkapital money is directed not only to obtain a new mortgage loan, but also to repay the existing loan debt received for the purchase of housing before obtaining a certificate.
- Not all credit structures can act as a lender, where you can take a loan under the maternity capital.
- Despite the name, the maternity capital is also given to the father or adoptive parents of the child.
Currently, mortgage programs with the use of a family certificate operate in many large financial institutions. The parent borrower has the right to choose the most advantageous offer, provided that the bank complies with the requirements established by law.
Who can issue a loan?
Choosing a credit organization in which parents intend to take a loan with the subsequent partial repayment at the expense of the parent capital, it is important that it meets the requirements of the law. According to federal law, the lender who gave a capital loan may be:
- Accredited financial enterprise whose activity is related to the issuance of loans to the public.
- Financial cooperative, working 3 and more years, passed the relevant accreditation.
- The organization issuing loan funds in the framework of the mortgage.
If you plan to use a microfinance organization as a lender, you should be especially careful – starting in March 2015, maternity capital cannot be taken into account when applying for a loan in an MFI. This measure is associated with high risk for borrowers and non-transparency of work of such lenders.
In addition to the agreement, the procedure for recording matkapital money in repaying a loan includes other additional actions.
Description of the procedure
Adhering to the following sequence, it will be easier to navigate where you can apply for a loan, as well as in the actions that certificate holders who are planning to implement state aid need to take:
- The choice of the bank in which you can take a loan, taking into account the offers currently available and interest rates. In addition to the banking structure, a cooperative, a construction company, another organization that has a legal basis for accepting funds under a capital may become a lender.
- Choose an object on which parents are going to spend the funds of the state. Depending on the type of object, additional approvals and obtaining permits may be required. If the object of purchase is a finished housing (apartment or house), buyers who are ready for a mortgage deal are sought.
- After agreeing a preliminary contract for the purchase with the seller, the client sends to the bank (other organization) an application with attachment of the documents for themselves, their payment abilities, and the object of ownership.
- Upon receipt of a positive response from the lender, a mortgage transaction is executed. Calculation with the seller occurs on the conditions specified in the mortgage agreement.
- Housing is registered in Rosreestre, about which a corresponding entry is made with a note of encumbrance due to the mortgage.
- A parent who has previously received a family certificate will apply to the FIU after the transaction is completed. The statement indicates a request to send the budget money to pay off the existing loan debt. The application is accompanied by a package of documents confirming the fact of the acquisition of housing using a loan.
- On time, the FIU reviews the application, notifies the parents of the results. If the answer is positive, the amounts established for the year of circulation of the citizen are transferred to the credit account.
The term of consideration of the application from March 2017 was reduced from 2 months to 1 month. Further, within the 10-day period, funds for family capital are transferred according to the requisites indicated in the application.
Payment approval documents
Documents for the Pension Fund for the approval of the transfer of funds include paper on parents, children, property and credit paper.
The list of applications includes:
- Family certificate confirming the right to sell budget funds.
- Civil passports of parents.
- If the spouse of the parent who has issued the mortgage is appealed to the FIU, a document confirming the marital status is provided.
- Registered in Rosreestre contract for the purchase of housing.
- Extract from EGRP or certified copy (if the purchase occurred without borrowed funds).
- In the case of a mortgage transaction, a notarial obligation is given to endow all members of the family with equal parts in common ownership.
- The registration certificate, other documentation confirming observance of norms of accommodation.
- Mortgage loan agreement for maternity capital, documents on the balance of debt and interest payments.
Documents for a loan
When applying for a maternity loan, the list of documents additionally includes:
- Documents for children.
- The document from the Pension Fund about the amount of the amount that is supposed to be transferred as part of the implementation of matkapitala.
- Help salary, other income parents.
The dangers of the transaction using mat. capital
When purchasing a home using a bank loan, it is important to remember that real estate will remain under encumbrance. Housing is issued on bail, which makes it impossible to manage real estate up to the full payment of loan debt, which can be taken with interest.
The success of the deal on the acquisition of improved housing depends on the Pension Fund, or rather, on the decision after considering the application of the parent and the timing of the transfer. It is difficult to find a seller who is ready to formalize the transfer of the right to an outsider when part of the funds will remain unpaid by virtue of the law. Urgent consideration and transfer will give more chances to realize matkapital without attracting a loan.
At the moment, the period of consideration of the treatment for capital is quite long. It will take a lot of effort not only to find better housing, but also to find a seller who is ready for a long time. If the purchase is made using a loan loan under the maternity capital, the lender can protect itself by setting special conditions for the borrower’s loan while waiting for the transfer.
Taking into account the peculiarities of the process of obtaining a loan for maternity capital will increase the chances of success, because it largely depends on the compliance of the transaction with the legal requirements. If there is an urgent need for better housing, parents have a real chance to use the maternity capital up to 3 years. However, it can only be taken in a cashless manner for a specific purchase agreed with the FIU.