How will “wooden mortgage” 2.0 work?

Preferential mortgage for a wooden house. Government Decree

On April 15, 2020, the Government Resolution on easing mortgage conditions for citizens purchasing wooden houses or apartments in a building with wooden floors came into force.

The easing of conditions concerns the loan rate, which, thanks to the subsidy, is reduced by 5 percentage points. In 2020, the government allocated more than 19 million rubles for wooden house construction. The procedure for issuing such deputies is regulated by GD No. 259 dated April 15, 2018. The program began on April 1, 2020 and was extended until 2020.

A housing loan under the “wooden mortgage” is issued only for the purchase of a house kit from accredited manufacturers participating in this program. These funds cannot be used to buy a plot of land to build a house.

Which banks to contact

A consumer loan for apartment renovation is available from almost any bank. But a loan secured by real estate is not available in every product line. The best conditions for such borrowing are offered by Sberbank and VTB 24.

A mortgage for the renovation of a private house or apartment in Sberbank is issued on the following conditions:

• The loan term is up to 20 years.
• The maximum loan amount is 60% of the value of the collateral property, but not more than 10 million rubles.
• The minimum rate is 12% per annum. It will be increased by 0.5 points if the applicant receives a salary from another bank, and by 1% if the borrower refuses personal insurance.
• The age limit of applicants is from 21 to 75 years (at the time of debt repayment).

VTB 24 offers clients the following lending options secured by existing housing:

• Duration – up to 20 years.
• The maximum possible loan size is 15 million rubles.
• Annual rate – from 11.7%.

An increased loan amount can be obtained from Otkritie Bank - up to 30 million rubles, however, the rate on such a loan will be higher - from 13.25%. Non-target mortgages are also present in the product line of Rosselkhozbank, but the minimum fee for the use of borrowed funds has been increased to 16.75%. Gazprombank offers a similar loan at 11.2% per annum for a maximum of 15 years.

Terms of a wooden mortgage: rate, terms and down payment

Let's start with the interest rate. The program does not indicate the exact value of the rate: the final percentage is determined by the bank. And the state, with the help of a subsidy, will reduce this rate by 5 percentage points. Judging by standard indicators for 2020, the interest rate on preferential housing construction will fluctuate between 9-11.5%.

The general terms and conditions of the program are:

1. Loan currency – rubles;
2. The maximum loan size is 3.5 million rubles;
3. Loan term – up to 15 years;
4. Collateral – purchased or other house; additional guarantees - surety;
5. Down payment – ​​from 10%;
6. The interest rate is 5% lower than the standard bank loan rate.

The bank receives the right to issue a preferential mortgage on a wooden house after concluding an agreement with the Ministry of Industry and Trade of the Russian Federation.

Features of a mortgage on a house with a plot

The mortgage lending market for the purchase of houses with land plots in Russia is underdeveloped. Not all domestic banks offer the corresponding products. And everyone has their own, sometimes specific, requirements for real estate.

If the house itself or even the plot does not meet these requirements, the loan will be refused. This is how a mortgage on a house with land differs from that on an apartment. The conditions for purchasing square meters in high-rise buildings from most banks are similar, but with regard to houses there are a lot of subtleties.

Banks take into account literally everything - from the location of the object to its technical condition. Moreover, in one organization they will be more interested in the year of construction and the estimated value, while in another they will pay attention to the type of land on which the building is located.

May also be relevant:

• presence or absence of communications;
• suitability of the house for year-round use;
• distance from the city and location relative to other settlements;
• construction on individual housing construction lands;
• the degree of wear and tear of the structure - for wooden houses it should not exceed 40%.

Some banks lend only to their payroll clients. Others give money only for standard houses in complex residential development areas.

“The list of banks’ demands can be endless,” Reshetnikova clarifies. — Therefore, in such cases, it is always necessary to select a banking product for a specific object. Just going to any bank and taking out a mortgage on a house, like an apartment, won’t work.”

The mechanism of preferential mortgages

State subsidies for wooden housing construction are carried out as follows:

• A citizen submits an application for a mortgage on a wooden house at a preferential rate.
• The bank reviews the application and documents and gives approval.
• Taking into account all the details, the bank issues a loan to the borrower at a rate reduced by 5%.
• The bank sends documents to the Ministry of Industry and Trade of the Russian Federation for reimbursement of the state discount.
• Funds are sent from the country's budget to the bank in the amount of the subsidy allocated to the borrower.
• The debtor periodically reports to the bank on the funds spent.
• The borrower returns the funds and repays the mortgage.

Having repaid the mortgage, the client is obliged to notify the bank about the completion of construction and the commissioning of the house; he also provides the bank with a document on ownership of the property and a passport with registration in the new house.

Registration process

The procedure for obtaining a mortgage for renovation is no different from applying for a home loan. Only the stage of searching for suitable housing is excluded.

The process begins with submitting an application to the selected bank. After receiving a positive decision, the client, at his own expense, assesses the value of the collateral object and transfers documents on it to the financial institution. After the bank approves the collateral, a mortgage agreement is signed, which is then registered with Rosreestr.

Required documents

The applicant will be required to provide a standard package of documents, which includes:

• application in the form of a questionnaire;
• passport;
• papers confirming employment and income.

Some financial institutions require the borrower to provide an estimate according to which the premises will be renovated.

The following documents are required for the collateral:

• extract from the Unified State Register of Real Estate;
• papers confirming the transfer of ownership of real estate to the borrower - purchase and sale or exchange agreement, deed of gift, certificate of inheritance;
• real estate appraisal report;
• cadastral passport (issued by Rosreestr), explication (provided by BTI).

The bank has the right to require additional papers.

Is it possible to get a subsidy for the construction of a wooden house?

Preferential housing construction was introduced by the Government to support domestic producers. In Russia, the need to revive wooden construction has long been overdue. Forest is a strategic resource that can replace oil. And since there are a lot of forests in Russia (28 trillion), why not develop them?

In this way, the government is trying to increase the demand for wooden construction. The program emphasizes that the mortgage is issued “for the purchase of a factory-made wooden house.” Therefore, it is possible to receive a subsidy for the construction of a wooden house within the framework of a “wooden mortgage,” but only for those who fulfill all the conditions of the lending bank participating in the program.

Look at the same topic: Under what conditions does Promsvyazbank refinance mortgages from other banks to individuals?

Officially working citizens can also receive tax benefits in the form of 13% personal income tax from the legally established amount of 2 million rubles. from mortgage funds and 390 thousand rubles. – refund of income tax on amounts up to 3 million rubles. The maximum possible compensation will be 640 thousand rubles. This benefit is provided one time.

Requirements for the borrower

The main requirements of Rosselkhozbank for approving a mortgage loan for the construction of private housing are the presence of a regular income and the ability to fully pay monthly installments. At the same time, the bank takes into account:

• The volume of the estimated estimate.
• The desire to use the services of contractors at the construction site who will be involved in the construction process.
• Mortgage payments are made only by non-cash credit to the client’s account, so the contractor must be a registered entrepreneur or legal entity.

See this same topic: Obtaining a tax (property) deduction for mortgage interest paid in year [y]

Requirements for the contractor and the house

Developers must meet the following requirements:

• Obtain state accreditation by concluding an agreement with the Ministry of Industry and Trade of the Russian Federation.
• Possess a license to carry out construction work using wood.
• Provide reporting data on the company's revenue for the past year in the amount of at least 200 thousand rubles.
• Sign an undertaking regarding the timing of production and delivery of a wooden residential property within 4 months. The period is counted from the moment the contract is signed with the contractor. The construction period can be extended by specifying other terms in the contract.

List of developers

There are not many developers who have expressed their willingness to participate in the program of preferential wooden housing construction. Here is their main list:

• (Moscow);
• Zodchiy LLC (Moscow);
• "Country Season";
• JSC "Tamak";
• Good Wood Corporation (Moscow);
• "Fort Ross House";
• HotWell et al.

The full list of accredited developers can be viewed at https://ipotekaved.ru/wp-content/uploads/2018/03/Partnery_doma_dachi.pdf

Requirements for the borrower

The borrower must meet the general requirements that apply to any client applying for a mortgage, such as:

• Age: from 21 to 65 years (at the end of the loan period);
• Citizenship of the Russian Federation;
• Permanent registration on the territory of Russia;
• Clean credit history;
• Official employment within the last 6 months;
• Possibility of providing collateral and other security;
• Consent of the spouse in writing;
• Solvency confirmed by an official document;
• Availability of funds for making an advance payment (at least 10% of the cost of the property).

The bank reserves the right to impose additional requirements on the borrower.

How to get a mortgage to renovate a private house

You can apply for a mortgage to renovate a house using the Sberbank Online service. The procedure takes a couple of minutes and consists of several steps:

1. You need to register or log in to the system.
2. Find the “Loans” tab and select “Take a loan” in the menu that opens.
3. Enter the necessary data into the application (passport details, indicate real income, information about work, about outstanding loans, about close relatives).
4. Confirm the identity and veracity of information using a special code.

Within 8 working days the application will be reviewed and a decision will be made. If approved, a bank employee will contact the borrower and invite him to the office to sign the agreement.

Documents for obtaining a loan

When applying for a “wooden mortgage,” the borrower provides the bank with:

• Russian Federation passport;
• Second identification document (passport, SNILS, military ID, etc.);
• Independent expert assessment report;
• Certificate of income 2-NDFL or according to the bank form;
• A copy of the work record, certified by the employer;
• Documents for the pledged property (title document, registration certificate, extract from the Unified State Register of Real Estate, plan, etc.);
• Papers for the land plot, including cadastral plan and cost.

If the house is just being built, then an estimate for construction must be provided.

List of documents required to obtain a mortgage

Standard, financial institutions may require other documents additionally.

Before collecting papers, you should check the list with the manager:

• citizen passport (regular);
• report issued by an independent appraiser (for real estate);
• the client’s driver’s license, SNILS, his military ID or international passport - an additional document with a photo confirming the person’s identity;

Also:

· 2-NDFL income certificate or bank certificate;

· a copy of the work record book – contains the signature and stamp of the employer;

· papers relating to the subject of the pledge - technical passport, cadastral plan, USRN certificate, etc.;

· land documents + cadastral plan;

· estimate drawn up by the developer for construction - if the house is just being built.

Some certificates have a limited validity period. Before transferring documents to the bank, you should update them.

Documents required for reporting

Reporting documents are necessary for the bank to track the expenditure of funds taken by the borrower from the lender. The bank will require from the client:

1. Personal documents: passport with registration in the house, certificate of family composition, marriage certificate, etc.
2. All documents for the purchased wooden house: house design, permit for construction and commissioning, cadastral and technical passports, contract agreements, purchase and sale agreements, extract from the Unified State Register of Real Estate.
3. Confirmation from the Registration Chamber about the removal of the encumbrance.
4. Payment documents confirming the costs of building a house and paying land taxes for the first month of home ownership (checks, receipts).

How to get a mortgage for a wooden house: step-by-step instructions

Let us present the stages of obtaining a “wooden mortgage” step by step.

Step one - choose a suitable bank and submit an application

You should not apply to the first bank you see. It is better to analyze the conditions of all banks participating in this program. To quickly search for a list of banks and analyze conditions, go to services such as:

• https://www.sravni.ru/;
• https://www.banki.ru/.

See this same topic: What is an apartment mortgage?

These sites will help you navigate the issue of choosing a bank.

Next, select 3-4 credit institutions that fit your parameters, read customer reviews about them, track their level on the Central Bank website and choose the most optimal lender. Apply for a coveted mortgage. This can be done remotely on the bank’s website or in person by visiting a branch of a credit institution.

Step two - submit documents

Having received a positive response to your application, collect a package of documents (see above).

If a co-borrower is involved in the mortgage, then he will have to collect a similar package of documents.

Do not forget that the bank has the right to request additional papers. The presence of a guarantee also requires the collection of documents for an individual acting as a guarantor of loan repayment.

The period for reviewing documents is from 5 days to 4 weeks.

Step three - order a real estate valuation report

This procedure is ordered and paid for by the borrower. Tariffs for the service are unstable: an expert’s assessment costs from 3,000 to 15,000 rubles. Where can I order this service? It’s worth asking the bank employees about this: they will issue a list of appraisers accredited by their institution.

Contact the appraisal office by phone, online, or come in person. To speed up the process, send copies via email:

1. Borrower's passports;
2. Extracts from the Unified State Register of Real Estate;
3. Real estate documentation.

The appraiser will come to the house, inspect the site, premises, and take the necessary photos. The report will be ready in 2-3 days.

Step four - sign the mortgage agreement

Well, all the documents have been collected, all that remains is to carefully study the mortgage agreement, study the payment schedule and, if everything is satisfactory, sign in 3 copies. But first, the bank will require you to take out insurance for the wooden structure.

How to get insurance for a wooden house?

Any mortgage program involves obtaining insurance. And here it is worth knowing that insurance for a wooden structure will cost a little more. And this is logical, because the risks of death and damage to the object in this case are much higher. Wood is a highly flammable material and less durable than other building materials. And the higher the risk, the more expensive it costs to protect it.

You can insure not only the house, but also the ability to work, the life of the borrower and the title. The last 2 insurance options are not mandatory for purchase, but refusal of them may increase the rate indicator to 1%.

Peculiarities

A mortgage for the renovation of residential real estate has the following features:

1. Mandatory requirement for security under the contract (housing pledge).
2. Long debt repayment period (up to 30 years for some programs).
3. Interest rates will be higher than for classic mortgages and lower than for consumer loans.
4. The need for the bank to obtain an assessment of the potential collateral (in the form of a professional report from an accredited appraisal company).
5. The targeted nature of the use of borrowed funds (you will need to confirm expenses, since it is allowed to use loan funds only for repair work, the purchase of construction and related materials, as well as the purchase of furniture).

The identified features confirm the widespread belief that this mortgage is a profitable way to renovate an apartment. However, you will have to confirm with payment documents, an estimate and an agreement what exactly the loan money will be spent on.

Terms of “wooden mortgage” in banks

Not all Russian banks are ready to participate in the housing lending program within the framework of the “wooden mortgage”. Below in the table we present an overview of banks and the conditions they offer for mortgages of wooden residential structures:

The interest rate may be reduced to 1% when taking out insurance.

As you can see, in practice, the conditions of the mortgage program for preferential housing construction are somewhat different and not as attractive as prescribed by the Government Resolution. This suggests that this program still needs to be further developed, maintaining interest from both banks and potential borrowers.

Mortgage for the construction of a private house in Rosselkhozbank: conditions in 2020

The issuance of a mortgage loan from Rosselkhozbank, designed for the construction of a house (possibly with the preliminary purchase of a plot for housing construction), is carried out under certain conditions:

• the credit limit (limit) is 20 million rubles, the minimum amount is 100 thousand rubles;
• the currency accordingly is the Russian ruble;
• the period for fulfilling obligations under the contract can be up to 30 years;
• the amount of the down payment also varies (from 15% to 30%) - depending on what is being purchased - a finished house (townhouse) on the ground, a plot for construction, etc.;
• interest rate – from 9.3% to 13.5% per annum (depending on the characteristics of the borrower, the size of the down payment and the size of the loan issued);
• it is allowed to involve co-borrowers (a citizen who is also responsible to the creditor bank for the fulfillment of obligations under the agreement) of no more than three people (the spouse becomes a co-borrower automatically);
• insurance of real estate is a mandatory procedure, life insurance is optional (but the absence of insurance increases the rate by a percentage).

A mortgage application for the construction of a private house is reviewed by Rosselkhozbank for no more than 5 days; the bank does not charge a commission when issuing a loan.

The bank has the following requirements for a potential borrower:

• A citizen taking out a mortgage from Rosselkhozbank for the construction of a private residential building must be at least 21 years old.
• The age limit for issuing a mortgage is 65 years. But this refers to the fact that the borrower should not turn 65 years old before the loan is closed. The age can be increased to 75 years, but subject to two conditions:
  a co-borrower must be involved whose age at the time of loan closure will be less than 65 years;
• Before the 65th birthday of the mortgage payer, more than half of the mortgage term must have passed.
• A citizen intending to take out a mortgage to build a house from Rosselkhozbank must have Russian citizenship and be registered in the country.

Income accounting is tied to length of service and has its own requirements:

• Individuals at the time of application must have worked in their current place for at least six months, and the total length of service must be one year over the last 5 years.
• For holders of salary accounts at Rosselkhozbank, the conditions are softer - 3 months at the last place of work, six months of continuous service for 5 years.
• Leading private household plots (personal subsidiary plots) need to have entries in a book called a household book. It is a document that keeps records of farms operating in a certain location and activities in them. These records must be kept for a year before applying to the bank for a mortgage.