Providing subsidies to young families
Almost every young family is given the opportunity to receive financial assistance from the state and this happens in the following order:
- The spouses take out a mortgage loan with one of the banks, in which the interest rate is reduced under a subsidy program.
- The family moves into new housing owned by the municipality. Its cost is significantly lower compared to the market average.
All subjects of the Russian Federation have their own preferences for the provision of subsidies. You can get acquainted with the conditions for their submission at the administration at your place of residence, but in general the process fits into the two listed schemes.
ATTENTION!
Young spouses who do not have initial capital can contact any of the banking institutions to conclude an agreement at a special reduced rate. The reduction in interest occurs due to compensation from the state budget. As a result, when repaying the loan, the overpayment is significantly reduced compared to a regular mortgage loan.
But such programs are not available in all banks. Their list is strictly established by federal legislation.
The municipality of a locality has the right to sell housing to a young family below the market if it is part of the vacant housing stock. This is one of the types of government subsidies. It does not matter how the couple will pay for the provided living space. This can be both own funds and bank credit funds.
IMPORTANT!
Possibility to purchase an apartment that is the property of the administration, if the spouses are included in the appropriate queue. If you cannot quickly obtain living space, then it is possible to buy it back at a price lower than the market average. But such cases are quite rare, since administrative bodies rarely have free housing.
A separate category of persons who may qualify for preferential state support are military and civil servants. There are special programs to subsidize them. In addition, banks lend to them on special, preferential terms.
Loan repayment procedure
To repay a previously obtained mortgage loan, the borrower must take the following actions:
- first of all, obtain a housing certificate from the state;
- open a special registered account at a bank participating in the program to transfer allocated subsidies;
- receive a certificate of account status (on the balance of the debt);
- provide the necessary set of documents to the local government authority responsible for transferring these funds legally.
After this, the borrower can only track the receipt of payments to his target personal account or to the lender’s account (the choice of one of these approaches is determined by the terms of the mortgage program). As an option for repaying borrowed funds, repaying the debt yourself (in parts or all at once) can also be considered.
Who can apply for a subsidy
Spouses, one of whom is under 35 years of age, have the right to count on receiving social assistance. This age level may be lowered by decision of the local municipal service. In addition, families can receive subsidies:
- Without children;
- Having 1-2 children;
- Which includes disabled children;
- Large families;
- If there are adopted minors.
A positive decision on security can be made if there is a significant need to purchase your own living space or expand an existing one. State support is not provided to people who have their own housing, the area of which exceeds the standard established for the region of residence.
To confirm the need to expand housing, the young couple will need to provide confirmation of official sources of income. The subsidy is designed for families with a stable average income. We must remember that a subsidy is essentially a loan of money that will have to be repaid.
To receive state support, spouses must meet the following criteria:
- Be citizens of the Russian Federation.
- The housing area should not exceed 15 square meters. m. for each.
- Living in a living space that requires expansion (officially confirmed).
- The income of a family with 3 or more children is at least 32,000 rubles.
Government programs
In 2020, the following projects are in effect: “Young Family”, “Housing for the Russian Family”, a partnership agreement with AHML, “Military Mortgage”.
Providing maternity capital is also used to reduce the financial burden on young couples. It can be used in conjunction with the subsidy provided, for example, as a down payment on a mortgage. It can be combined with any of the state support programs.
At the end of 2020, a decree was issued providing benefits for mortgage lending for families with two or more children. This project is quite successful and can be used if:
- The second and subsequent babies were born starting in 2020;
- Living space is purchased in a new building.
Young Family Program
The terms of the project provide for the provision of compensation to young spouses up to 40% of the cost of housing. This proposal has been working very successfully since 2011. During this time, many young families have benefited from such assistance.
In this case, the distribution occurs as follows:
- Childless families are compensated up to 30% of the cost of purchased housing;
- Couples with one child or mothers (fathers) who continue to raise children after the termination of the marital relationship receive compensation of up to 35%.
The general rules of the program are:
- The age of each spouse must not exceed 35 years.
- The family must be recognized in accordance with the established procedure as in need of improved housing conditions.
- The official income of the couple should not exceed the limits established by law.
REFERENCE!
Childless spouses whose housing occupies less than 36 square meters are recognized as needy. m., that is, 18 sq. m. for each. At the same time, getting preferential mortgage lending will not be difficult. Especially if the spouses have no place to live and they use rental housing.
If the existing living space is the only place to live, then even a childless couple has the right to apply for a mortgage loan with a preferential reduced rate, where government subsidies are involved.
You can register as those in need of improved housing conditions with the administration at your place of residence. To do this you will need to submit:
- Parents' passports;
- Marriage and birth certificates;
- Documentation for existing housing;
- An extract about the persons registered in the apartment.
AHML mortgage borrower assistance program: latest news for 2020
- children's birth certificate;
- ID card belonging to a combat veteran;
- a certificate indicating the presence of a disability group;
- 2-NDFL certificate guaranteeing income level;
- a statement characterizing property status.
The legislative framework
This program was initially planned to end before the end of 2020. Due to the impossibility of simultaneously satisfying all citizens' requests, certain adjustments were made to the document. The date was first set to March 1, 2020, and then to May 31. In August, new changes were signed, within the framework of which specific terms were not specified.
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This initiative is designed for a separate social group, including young professionals who are especially in demand in rural areas, as well as large families of citizens under the age of 25-40.
Registration procedure
You can take advantage of state support for a young family by doing the following:
- Submit an application to the appropriate department of the municipality and attach the necessary documentation.
- After approval of the application, the family is included in the queue to receive living space.
- Spouses are issued a certificate for obtaining a preferential housing loan, which must be submitted to the bank.
- Conclude a mortgage agreement with one of the credit institutions connected to the program.
Consideration of the application can last up to one year, after which the spouses will be offered appropriate living space that meets certain criteria, and the bank will open a special account where funds from the budget will be transferred in the required amount. As a rule, money is received within 2 months from the date the bank details are provided.
It must be remembered that this program is valid until the beginning of 2020. After this, it ceases its effect.
Family mortgage and its conditions in 2020 with changes from for disabled children: news, rates
In November 2020, the President of Russia once again raised the issue of the need for state assistance for families with two or more children. Putin's decree contained direct orders aimed at creating a regulatory framework and the speedy implementation of a population lending program at 6%.
Family mortgage with state support of 6 percent from 2020
Since April 2020, there has been a change in the terms of the family mortgage in terms of the validity period of the preferential rate. Now it is valid for the entire period, and not for 3 and 5 years as before. We were allowed to refinance previously refinanced loans under the family mortgage program at 6%. There are also benefits for residents of the Far Eastern Federal District. Now they can purchase housing in their region using a family mortgage at 5% per annum, and they can also purchase housing in rural areas of their region at the same rate from individuals.
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Submit an application to the district administration and present the required package of documents to the employees of this organization. The application must contain a rationale for your desire to become a participant in the program. The implementation of government programs to improve the living conditions of young families is carried out by an organization called AHML - Agency for Housing Mortgage Lending . The agency has branches in all constituent entities of the Russian Federation.
Where to go and what needs to be submitted to apply for a subsidy
Regarding the issue of providing a subsidy for the purchase of housing, you will need to contact the municipal administration, the relevant departments or the MFC. When using maternity capital funds, an application is submitted to the Russian Pension Fund.
The standard package of documents required for the procedure is:
- Documentation of the birth of children;
- Passports of a married couple;
- Certificate of registration of marriage relations;
- Certificates of income of both spouses;
- An extract from a banking institution on registration of a mortgage;
- Information from Rosreestr about the availability of residential premises in the property.
This list is not exhaustive and can be supplemented at the request of officials depending on the specific situation.
Mortgage subsidy in 2020
In the case where refinancing implies a complete re-issuance of the loan agreement and often repayment of the balance with interest to move to another commercial organization. That restructuring is a change in the structure of conditions in the native bank. It is difficult to say for sure which of these options is more profitable and convenient. It all depends on the agreement with the commercial organization, the financial capabilities of the borrower and his life circumstances.
Subsidizing the mortgage rate
Maternity capital is issued to parents upon the birth of their second and third child. Its amount is indexed depending on inflation, the economic situation in the country and in 2020 it is 453,026 rubles. It is planned that in a year this amount will increase to 470,241 rubles. Regulated by the law on support for families with children 256-FZ of December 26, 2006, which states the purposes of the direction of the amount received from the state:
- the birth of a child will help the family receive compensation for 18 m² of living space;
- the birth of a second baby allows you to get help for an additional 18 m² of housing;
- The decision to have a third child makes it possible for the state to fully repay the mortgage debt (this depends on the cost and area of the apartment).
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