Home » Articles » Mortgage » Mortgage for low-income people in 2020
March 19, 2020 No comments
For many of our compatriots, purchasing their own living space is a difficult task. Real estate prices are greatly inflated.
In addition, when turning to banks for a mortgage loan, citizens are forced to pay high interest rates. What is the way out of this situation?!
What it is
For granting a loan, the bank charges the client interest on the borrowed funds. Interest is charged regardless of what type of loan is issued - mortgage or consumer.
Interest represents the profit the bank receives for issuing loans. Interest-free loans do not exist because they are unprofitable for banks.
But many citizens are wondering whether it is possible to purchase a home with a mortgage without paying high interest or pay it at a lower rate?
This opportunity is provided as part of state support for low-income citizens.
The essence of this support is that the bank issues a mortgage with interest, but the client pays it off without interest. As a result, it is beneficial for both parties to the contract.
State assistance is provided within the framework of the “affordable housing” social program
It is provided as part of the Housing for Russian Family program.
Assistance from the state for the purchase of real estate is provided by JSC "DOM.RF" (until March 2020 - "Agency for Housing Mortgage Lending" (AHML))
This organization, in cooperation with banks, has introduced several mortgage programs for citizens who do not have a high income and who cannot afford to take out a mortgage on normal terms.
There are several types of social mortgage programs. Participation in a specific social program is related to the region chosen by the bank and the amount of subsidy provided by the budget.
Currently, there are various options for government support.
Which include:
| Subsidies from the budget | Amount of money to pay part of the loan. Typically paid as a down payment |
| Buying apartments | municipal housing stock at a reduced cost |
| mortgage interest reimbursement | Partial or full payment by the state for a citizen of interest on a loan |
About social credit programs
As mentioned earlier, there are no banking products aimed at mortgage lending to the poor.
But there are many programs through which families in need can receive not just subsidized assistance, but also more favorable loan conditions.
Optimal options
I.
Project for obtaining a targeted loan for young families.
An important condition concerns the age of the applicants: they must be no older than thirty-five years. The benefit in this case concerns the provision of a subsidy for paying the mortgage in installments. 35% of the cost of the home if there are no children, and 40% if there are any. The lowest interest rate is 8.6%. This is important to know: Are any payments due to an unemployed pregnant woman?
II.
Providing housing for those citizens who are in line.
In such cases, the family is entitled to a subsidy to pay the loan in installments, or is given a mortgage on real estate sold by the local municipality. This program is valid only in regions where they have their own housing stock. If a targeted loan is issued, you can use material capital funds if the family has the right to a certificate, other benefits and subsidies.
Who is entitled to
State support is not available to all Russian citizens, but only to beneficiaries.
Preferential categories include:
| Persons who have no other housing | and received the status of those in need of improved living conditions |
| Living in emergency | or dilapidated housing |
| Low income | which does not allow you to purchase an apartment on general terms. In particular:
|
Who can apply for a social mortgage
The expenditure of budget money is strictly controlled. If the family lives in normal conditions, the state prohibits providing such people with mortgage benefits. This means that selection criteria have been developed for participants in social programs.
General requirements for applicants for a social mortgage:
- Two or more families live in one apartment;
- The applicant does not have his own living space;
- The family is registered in a dormitory or in a communal apartment (time spent studying or seasonal work is not taken into account);
- People live in premises that do not meet the standards for space (established by the constituent entities of the federation) or sanitary and hygienic conditions prescribed in the Housing Code of the Russian Federation.
Teachers, doctors and other state employees whose salaries are provided by the state can apply for participation in the program. They must work in their specialty for at least three years.
For military personnel (army, police, customs, rescuers, firefighters) there is also a military mortgage, in which the state also provides support, but they can also participate in general social housing lending programs.
In addition to general criteria, each program also has its own conditions. Only applicants who meet all the requirements can participate. Write a statement to the head of your organization (chief doctor of the clinic, head of the kindergarten, unit commander). Social mortgages for young and low-income families are provided by local governments.
Look at the same topic: Military mortgage in Sberbank in [y] year: how much does the bank give for a military mortgage?
Terms of issue
Mortgage loans on preferential terms for low-income citizens are issued subject to the following requirements:
| Age requirements | Not exceeding 35 years of age. Since the deadline for a preferential mortgage should not exceed the retirement age at the time of repayment of the mortgage |
| Making a down payment | The amount of which ranges from 10% to 30% of the price of the purchased property. The state subsidy is aimed at partial or full payment of the fee. The principal amount of the mortgage is paid personally by the citizen-borrower |
| The presence of a positive | credit history |
| Targeted nature of the loan provided | Can only be used to purchase real estate |
Last changes
In April 2020, a law on “mortgage holidays” was issued, according to which borrowers who find themselves in difficult life situations can be given a grace period: 6 months, within which these individuals will be able to suspend loan payments or reduce their size. These rules will apply to people who have lost their jobs, received 1-2 groups of disability, or lost their breadwinner. They will also apply to existing credit relationships.
Our experts monitor all changes in legislation to provide you with reliable information.
What is the social mortgage for low-income families in 2019? What are its features? We will learn about this from this article.
Social mortgages, intended for low-income families, are considered one of the types of government support designed to help citizens with low incomes buy decent housing. As such, there is no banking product financing the purchase of housing for the above category of citizens. But low-income families can participate in one of the real estate purchase programs on preferential terms.
How to get a low-income mortgage
To obtain a mortgage for low-income people to purchase an apartment with government support, they should first of all submit an application to the territorial branch of the mortgage and housing lending agency.
After reviewing the application by the agency, the borrower must select a suitable bank cooperating with JSC DOM.RF.
In addition, AHMLs can directly cooperate with construction companies and developers on mortgage lending programs.
During the review of documents by a credit institution, the borrower should select a property that will be pledged to the bank.
Banks are willing to issue loans to privileged categories of the population, since the state ensures loan repayment.
After the bank makes a positive decision on the application, you need to draw up a home purchase agreement and register the mortgage.
Single mothers
A single mother (single mother) is considered to be a woman who gave birth and is raising a child, in the absence of marriage and without a joint application of the parents to establish paternity in the civil registry office.
Having received the appropriate single mother certificate, a woman can apply for benefits. The certificate can be obtained from the social protection department at your place of residence.
A copy of the single mother's ID is attached to the application to the bank and to the mortgage and housing lending agency.
Large family
There is no special program at the federal level adopted to provide housing for large families.
Therefore, large families often receive benefits when purchasing housing under other social programs, for example, as a young family or with the help of maternity capital.
However, in some regions there are financing programs for large families to purchase housing.
The point of such programs is that part of the debt is paid from the regional budget. The procedure for obtaining a mortgage to purchase a home is the same as for a regular mortgage.
The borrower needs:
| Send documents to the local administration | or to the social security department. Based on the results of document review, a certificate for the provision of state support is issued. |
| Submitting an application with attachments to the bank | along with the issued certificate |
| Drawing up a mortgage loan agreement | Conclusion of a housing purchase and sale agreement, registration of property rights |
When another child is born (or adopted) into a low-income family, part of the debt can be written off.
When applying for a preferential mortgage, it is possible to attract guarantors and co-borrowers; in this case, lending conditions can be the most favorable.
For young professionals
Young specialists are considered to be persons who have received a higher education or more, but have not reached 35 years of age.
In addition, you must work for more than three years in your specialty.
As a rule, the income level of young professionals leaves much to be desired, which is why the state provides special support measures aimed at purchasing housing.
For example, there is a preferential program for teachers. There are also support programs for employees of scientific institutions.
You can get a loan from Sberbank or by submitting an application to a mortgage and housing lending agency. The process for applying for a mortgage is the same as for a standard mortgage loan.
State employees
State employees may also fall under the category of the low-income population.
In conditions of economic crisis, their wages are low.
Such citizens also have the opportunity to claim benefits when concluding a mortgage agreement to purchase an apartment.
To apply for a preferential loan, a public sector employee must meet the following conditions:
| Be no older than 35 years old | confirm low income |
| Have status | in need of improved living conditions |
| Do not own a home | or stand in line for housing |
| Work experience more than three years | at the last place of employment for more than a year. In some regions of Russia, different deadlines are established. |
State employees eligible for preferential mortgage terms are teachers, medical workers, and others.
It is important to remember that all categories of low-income borrowers have the opportunity to contribute maternity capital funds as a mortgage payment.
In addition, if there are conditions for participation in several preferential programs, borrowers can receive a mortgage on more favorable terms. For example, under the “young family” and “mortgage for young professionals” programs.
Procedure and conditions of registration
To participate in a preferential mortgage, you must first prepare documents confirming the status of a potential client. Afterwards, loan applications are submitted to the executive authority and Sberbank. If the application is approved, the funds are transferred to the account of the real estate seller.
To obtain the status of those in need, a family must confirm their residence in premises that do not comply with the requirements and standards of housing legislation. This characteristic applies both to the size and to the quality and condition of the existing housing.
When applying for a mortgage at Sberbank, taking into account the down payment, the interest rate is determined in accordance with government support.
“>
Stages of registration
Applying for a mortgage loan involves completing certain steps.
Namely:
| Apply for status as someone in need of improved housing conditions | Why do you need to contact your local administration or social services department? protection. The application must be accompanied by the necessary documents confirming the existence of difficult conditions. After approval, the beneficiary is issued a housing certificate |
| Contacting DOM.RF, selecting a state program | Often, preferential categories choose to receive government subsidies, i.e. repayment of the initial contribution from the budget. The principal amount of the debt is repaid by the borrower independently. In some regions, the amount of government subsidies varies; it can reach 50% of the cost of housing |
| Registration of a mortgage agreement with the bank | The agency has partner banks that offer special mortgage programs for beneficiaries. |
| Selection of housing and registration | The agency also cooperates with development companies. You should select housing from the available offers of such construction companies |
What documents are needed?
It will take some time to collect the necessary documents.
To apply for a preferential mortgage in Moscow and the region, you need to prepare the following papers:
| Application for a loan | passport of a citizen of the Russian Federation |
| Birth certificates of children | For children aged 14 to 18 years, their passports must be presented |
| Marriage registration certificate | Notarized consent of the spouse to conclude a transaction |
| Certificate for housing | confirming the applicant's need |
| Certificate of income | according to form 2-NDFL or according to the bank form |
| Extract from the house register | Copy from the work book, certified by the employer |
| Diploma of education | for young professionals |
| Other documents | According to the bank's requirements based on the situation |
Application Form
To receive a loan, you will need to fill out an application. A sample application is established in specific banks.
In this case, there are general data that must be indicated in a general manner.
These include:
| Personal information about the borrower |
|
| financial position |
|
| Information about the loan program | This section is filled out by a bank employee. In him indicated:
|
| Information section | confirmation of information in the application |
How to apply for the removal of a mortgage encumbrance: a list of documents for the removal of a mortgage encumbrance.
Video: Mortgage for low-income people in 2020
(No Ratings Yet)
