Preferential mortgage for employees of the Ministry of Internal Affairs in 2020

Governmental support

The incomes of budget workers are not high. Representatives of such structures rarely manage to save up funds to purchase their own apartment or at least half of its cost to purchase on credit. Municipal and state authorities have found a solution to the current problem. For this purpose, we launched a housing lending program. Its conditions allow:

1. get a loan at a lower interest rate;
2. receive financial assistance (subsidy) from the state for the purchase of housing.

Police officers of the Russian Federation and military personnel can receive a housing loan under special conditions. Such borrowers are guaranteed to receive state aid. It is issued in the form of a One-time Cash Payment (LCP), which can pay off up to 40% of the cost of future housing.

• This money can be used to make a down payment on a mortgage.
• The issued amount can be used to partially repay the principal debt.

The amount of the monthly allowance will depend on the number of people in the family of an employee of the Ministry of Internal Affairs.
Also, the amount of State aid will be affected by length of service (service life). Based on the service life, a correction factor will be calculated. The average cost per square meter of living space in a particular region must also be taken into account. Such calculations have their own gradation. For example, the smallest correction factor of 1.05 will be for employees of the Ministry of Internal Affairs who have served no more than 11-12 years. The highest rate of 1.5 is assigned to those who have been in service for 25 years or more.

Important!

The decision on the accrual and further payment of the EDV must be made at the level of the federal body.
The executive branch of the Ministry of Internal Affairs confirms the decision in writing. If the decision is positive, the State will partially compensate for the cost of housing.
The remaining amount is the responsibility of the borrower. He must find and pay this money himself. The conditions for preferential subsidies for military and police officers differ:

• The first receive full State aid (subsidy) to pay the cost of housing. By “value” we mean the body of the loan. But the military needs to pay off the interest on its own.
• The latter receive partial State aid - a subsidy of up to 30-40% of the cost of the selected apartment/house.

The rights of each category of budget employees are regulated at the legislative level. For example, to help employees of the Ministry of Internal Affairs, the Federal Law “On Police” No. 3-FZ dated 02/07/2011 is in force. Police officers have their own amounts and terms of payments, which are based on the Decree of the Government of the Russian Federation dated 12/30/2011 “On the provision of a one-time social payment for the purchase or construction of residential premises for employees of the internal affairs bodies of the Russian Federation.”

Features of mortgage lending

A police officer is a reliable customer for any bank. The job at the Ministry of Internal Affairs is permanent, the level of earnings is sufficient to repay the loan, you can influence through the employer if the borrower does not make payments on time.

The processing time for an application depends on the number of beneficiaries and the order of distribution of budget funds. Once the judgment is made, you must notify the creditor that you are making a large payment.

The bank may insist on a preliminary application for repayment of the debt through the subsidy. When money from the budget arrives, the amount of debt will be recalculated.

NIS for employees of the Ministry of Internal Affairs

Last year, the government proposed to include police officers in the NIS. This program was originally developed for the military. NIS provides for the possibility of purchasing real estate from the beginning of service using borrowed funds.

The following categories of persons are entitled to participate in the program:

Graduates of military universities who received the title on January 1, 2005.

Reserve officers who began service under contract in the period from 2005.

As of 2020, employees of the Ministry of Internal Affairs receive only a subsidy; participation in the NIS is not yet discussed.

Military mortgage for pensioners of the Ministry of Internal Affairs

Pensioners of the Ministry of Internal Affairs can receive financial assistance if need is determined. Widows of employees who died in the performance of their duties can apply for social benefits and military mortgages on general terms.

Former employees of the Internal Troops of the Ministry of Internal Affairs who continued to serve in the troops of the Russian Guard can obtain a mortgage using money from the NIS account.

The parameters of a targeted loan for this category of persons from Sberbank are as follows:

loan amount - from 300 thousand rubles, but not more than 85% of the cost of the purchased housing;

debt repayment period - up to 20 years;

securing the loan with collateral (insured by a company accredited by Sberbank - this is a prerequisite);

stable interest rate - 9.5%.

Monthly payments make up a twelfth part of the savings contribution. Early repayment is possible in any amount.

Who can take part in the state subsidy program

Targeted subsidies are issued to recipients who meet certain requirements.
Firstly, this is experience - it must be 10 years or more. Secondly, Russian citizenship. And lastly, solvency, which allows you to repay bank debt over a long period of time. There is one more prerequisite - a positive credit history. Each borrower is automatically checked for the absence of overdue debts to banks. To do this, the financial institution submits a request to the BKI and receives the credit history of the potential client.

The fact that the applicant needs new housing or improvement of previous living conditions must be proven.

An employee of the Ministry of Internal Affairs will be approved for the issuance of a state subsidy for a mortgage if:

• in his (spouse’s) own possession there is no living space exceeding the norm of 15 m2/person;
• there is a private property, but in a dilapidated and uninhabitable condition; This also includes a room in a dormitory or communal apartment;
• the applicant lives in an apartment with another family/families;
• lives with an infectious person and can confirm this with a medical document;
• lives in departmental housing issued from a free fund.

The listed conditions apply to current and retired employees of the Ministry of Internal Affairs. Also apply to families of “those killed in the line of duty”, subject to the availability of the appropriate certificate.

How to get a benefit

Previously AHML, and now DOM.RF is looking for banks that are ready to provide mortgages to employees of the Ministry of Internal Affairs on preferential terms. Here you will be advised on the amount of State aid that you can count on.

In it, indicate the loan amount and your personal data.
After submitting the form, you need to get in line to receive the intended payment. To do this, an application is drawn up and submitted to the commission. The commission is directly involved in providing one-time payments to employees (active or in reserve) of the Ministry of Internal Affairs. Organized by a federal government agency. To apply to the commission you will need to collect the following documents:

1. a passport confirming Russian citizenship and a police officer certificate (originals are provided along with copies);
2. if you are married, you will need a certificate from the registry office; divorce is also confirmed by a document;
3. if there are children in the family, you need to prepare their birth certificates;
4. original passports of all family members are collected and copies are made;
5. if the bank has an existing loan, a certificate of the balance of the debt will be required;
6. the fact of service in the Ministry of Internal Affairs, all promotions and length of service must be confirmed by relevant certificates and extracts;
7. you need a document that confirms that the employee’s family really needs improved living conditions;
8. take an extract from the house register;
9. ask the bank to provide the account number opened when issuing a mortgage;
10. take a certificate from work stating that you (your family members) have not previously received similar assistance;
11. attach a certificate of family composition.

The listed documents will need to be collected in a folder, handed over to the commission and wait until the information is verified.
After successfully passing the verification, you will be registered and assigned a queue number. Successful submission of documents will be completed by written notification that the submitted application has been accepted. As your turn approaches, you will be notified in writing that government assistance will be transferred to the bank account specified in the documents. If you need this money for a down payment, then get in line early. After all, the process of reviewing, approving and implementing an application takes time.

Documents required for a mortgage

Different lenders require different lists of documents; within one bank there are programs with a complete and incomplete package of documents. In order to receive a preliminary answer, the borrower’s passport and TIN are sufficient. Let's look at what documents will be required from the borrower when applying for a mortgage for housing under construction at Sberbank:

• Borrower's passport;
• Residence permit if the borrower is not a citizen of the Russian Federation;
• Second document (military ID, INN, SNILS, international passport, PTS, paid medical insurance);
• A document confirming registration at the place of stay (for visitors);
• Work permit (for visiting citizens);
• Certificate of income (2-NDFL, according to the bank form);
• A copy of all pages of the work book or employment contract.

This concerns the borrower, for the collateral provided (the purchased apartment, a package of documents is also provided:

• DDU;
• Notarized consent of the spouse;
• Report on the assessment of the market value of the apartment;
• Cadastral passport, house plan;
• Marriage contract.

The collateral must be insured; a list of insured events is provided by the lender; depending on the case, the beneficiary (bank, borrower) is determined. The apartment is insured after the contract is drawn up and signed; a document confirming insurance must be provided within 14 days after the transaction.

The insurance company must be accredited by the bank or meet its conditions. The list of companies can be viewed on the bank’s website, or you can request to add the company to the list of accredited ones.

The state program “Affordable Housing” provides special offers for law enforcement defenders. Mortgages for employees of the Ministry of Internal Affairs in Sberbank are available on general terms, and in VTB you can get a benefit.

Which banks lend?

Previously, a special branch of VTB Bank, the Bank of Moscow, worked with such a program.
Now the company has been simplified, and VTB itself is engaged in lending. The conditions are the same for everyone, with an advantage for salary clients. You can contact Dom.RF for help in finding the appropriate banks. But, it is better not to count on benefits and find a financial organization with a minimum mortgage rate. Already at the bank, warn the manager that you need subsidies for PV. Or deposit your own funds and repay the loan amount with the one-time assistance provided.

NIS for employees of the Ministry of Internal Affairs

In the spring of 2020, it was proposed in the Federation Council to study the issue of the possibility of including employees of the Ministry of Internal Affairs in the savings and mortgage system (NIS). The savings and mortgage system for housing provision for military personnel was developed on behalf of the President of the Russian Federation.

The program offers assistance in repaying mortgages for military personnel, as well as the opportunity to purchase real estate at the beginning of their service using a targeted housing loan.

Funds are transferred to the program participant’s personal savings account to be used in the future for the purchase of living space . The basis for the creation of the NIS is the long-term nature of military service. In addition to purchasing real estate in an apartment building, the system allows you to buy an apartment under construction.

Such benefits will reduce the final cost of real estate and allow you to buy housing with a larger area. You can also purchase a house on a plot of land, a town house, or even build a house according to your own design.

The following categories of military personnel have the right to participate in the NIS:

1. Citizens who graduated from military professional organizations or military higher educational institutions, as well as received the first military rank of officer since the beginning of 2005. And if these persons entered into the first contracts for military service before the beginning of 2005.
2. Officers who were called up for military service from the reserve, or voluntarily entered military service from the reserve and entered into the first contract for service since the beginning of 2005.

Do employees of the Ministry of Internal Affairs fall under a military mortgage? The possibility of police participation in the NIS program began to be discussed back in 2018, but so far in 2020, employees of the Ministry of Internal Affairs receive a one-time social payment.