How to use maternal capital if we are building a house ourselves?

Improving living conditions

Improving living conditions is a common way to spend maternity capital. You can invest funds in one of the following ways:

To buy an apartment. The certificate can be used as a first payment under a mortgage agreement or to repay an already taken loan (by the way, then you don’t need to wait 3 years - part of the debt is repaid immediately).
Build a house.
Improve existing housing, for example, reconstruct a partially unfinished building.

After the birth of the second child they receive a Certificate. After 3 years, you can use the money. To do this, you will need to contact the Pension Fund and agree there whether it is possible to spend the allocated money in the chosen way, what is needed for this (registration procedure, list of certificates).

Construction

It is possible to obtain capital for the construction of a new house. You can use the allocated money as compensation for a constructed facility that was put into operation starting in 2007 (provided that the child is already 3 years old). To do this, you will need to re-register the house as common or shared ownership and provide title documents for it.

Reconstruction

You can spend maternity capital on the reconstruction of a building that you already own. To be able to use the funds, after reconstruction the house will have to increase by at least 1 calculated area standard. The standard in the regions is set by different local authorities (often 18 square meters). That is, you will have to make an extension.

Features of using maternity capital for building a house

When applying for family capital, you need to remember some features when using it for construction.

These include:

Funds are issued only in the amount of 50% of the total amount;
The second part of the capital is issued no earlier than 6 months after the first issue;
In the absence of funds for construction, capital can be obtained before the child reaches 3 years of age. To do this, you will need to take out a loan, after which the capital can be used to cover the debt.

Reimbursement of funds spent on building a house from maternity capital

For parents who have two children and are entitled to capital, there is the opportunity to reimburse costs by receiving family capital. To do this, you need to visit the Pension Fund and leave an application there with the attached documents.

This option is relevant for those parents who cannot wait for their child to reach 3 years of age. So, they can carry out construction at their own expense, and then apply for capital. To avoid misunderstandings, you need to keep all receipts, invoices and receipts associated with construction costs.

To receive a refund you will need to follow the instructions:

Collect all documents for the building and the land underneath it, prepare consumable documents for construction;
Go to the Pension Fund with an application and a package of documents;
Wait for a decision on issuing funds or refusing;
Receive a transfer to the applicant’s personal account.

Repaying a loan taken to build a house

You can take out a loan for construction and then repay it with family capital. This decision is also relevant for citizens whose child is under 3 years old.

To do this, you will need to collect more documents than during construction without borrowed funds. These include:

A copy of the loan agreement with a clearly stated amount of debt;
A certificate from a credit institution about the debt at the time of filing the application. It must indicate 2 amounts: the principal debt and interest on it;
If a mortgage agreement was concluded, a copy of it must be provided;
Papers on the property of the constructed housing;
The obligation to provide all family members with shares in housing;
Spouses' identity card;
Marriage or divorce document.

Using maternal capital for equity participation in the construction of a house

You can also receive funds for an unfinished housing project by contacting the local branch of the Pension Fund. You can confirm the expenditure of funds on it using the following documents:

An extract from the register of the cooperative;
A copy of the agreement on participation in shared construction;
Certificate of funds invested in construction or debt;
Charter of the cooperative.

You will also need an obligation to register a share for each family member, no later than 6 months from the date of completion of construction.

If you receive a positive result from the Pension Fund, you can expect a transfer of funds to the account of the housing developer to pay off the debt.

Use of maternal capital

To use maternity capital for any purpose, you need to first consult and find out the list of requirements:

You can purchase an apartment in a new building, provided that the creditor bank (in the case of a mortgage) works under the maternity capital program;
it is possible to build a house that strictly meets the standards.

When building a house, it is necessary that not only the building, but also the land plot meets the requirements. Funds are provided for construction in two stages. The second half will be received when the employees of the Pension Fund see the real results of the construction of the facility.

Primary requirements

The main condition for a construction or restructuring project is habitability. There are a number of requirements for a private house and land plot. If the object does not meet one of the points, it will not be possible to obtain maternity capital. If it is spent in violation of the conditions, the government agency may demand a refund in full.

To the land plot

Purchasing a plot of land to build a house is a logical necessity. But the law does not provide for the purchase of land as one of the ways to spend the Certificate for maternal capital. It is possible to build a house or modernize an existing one. But you can only spend money on living space.

An exception will be the case when a building with a land plot is purchased. The house must meet all requirements. Formally, according to the documents, government assistance is directed towards the purchase of only a house, and the land is an addition to it.

Formally, a country residential house fits these criteria. But the Pension Fund is requesting a construction permit to receive funds. According to the Law, the following cannot be used for construction:

Gardening Partnership (SNT). Only a garden house and small outbuildings can be placed here.
Dacha partnership. A house up to 3 floors in height, undivided into apartments, can be built here. The land is used for growing crops. According to documents, the site is unsuitable for living.

Construction of a house is permitted for:

land intended for the construction of personal houses (IZHS);
a plot for growing crops, but intended for residential purposes (LPH).

Otherwise, the PF may be suspicious of trying to cash out funds.

To home

There are requirements for a house under construction. If they are completed, you can receive funds. Government Decree No. 47 establishes the procedure for recognizing premises as residential:

location within populated areas (residential area);
operability and safety of the erected structure;
the presence of engineering systems that are considered the norm for a populated area (in some it is impossible to install sewerage and gas supply).

Construction of a house in a country house does not give the right to receive maternity capital funds. Even if the house meets the requirements for residential buildings, its location does not classify it as residential. A land plot of this category is not designed for individual housing construction.

Home construction

There are two ways to build a house using a Maternity Capital Certificate:

on your own;
involving a contractor.

An important difference will be the procedure for transferring funds. If the work is completed independently, the amount is transferred in two parts. When an organization is involved, the entire amount is transferred at once.

The total amount is standard 453,026 rubles. If there are grounds for exceeding the budget, the amount will not be compensated above this level.

Contractor organization

The law does not prohibit the involvement of a contractor in construction. An important condition is the presence of an official contract. The contract can be concluded by a woman (Certificate holder) or her husband.

After approval, the money is transferred in full (not divided into 2 parts) to the contractor’s account.

Along with the standard package of documents, you must submit a copy of the contract and the contractor’s details (bank account) to the Pension Fund.

Receipt of funds is possible only after the child turns 3 years old.

On your own

When building a house, they independently receive 50% of the allocated money after submitting the documents:

construction permit;
title documents for land (the name of the certificate holder/spouse is indicated);
an obligation certified by a notary confirming the re-registration of the house to family members no more than six months from the date of commissioning;
a bank statement with account details to which the money will be transferred;
passports of spouses;
Certificate for maternity capital.

To obtain permission to conduct construction, you will need to submit a house plan, an estimate indicating costs, and links to specific stores (to confirm the relevance of the cost).

Documents for obtaining maternity capital for building a house

If you have a second (or subsequent) child, you can receive a certificate for maternity capital to use it to build a house. To do this, you need to contact the Pension Fund of the Russian Federation.

Most often, the child's mother is the recipient. According to the conditions for obtaining maternity capital for the construction of a house, it is necessary to prepare documentation.

The package of documents includes:

passport;
insurance number of an individual personal account;
certificate for receiving maternal capital;
a document confirming the right of ownership of the land plot owned by the mother (or her husband);
permission (in writing) for construction;
a certification confirming that the house will be registered as family ownership within six months from the date of completion of construction work.

The Russian Pension Fund will verify the application, as well as all provided documents. Only after this will a bank account be opened in the recipient's name. Only the owner of the certificate, that is, the mother, will be able to withdraw the funds.

If you plan to build a house yourself, you will have to collect all the necessary documents related to construction.

It is recommended to prepare them in advance. The best option is when you already have documents when receiving maternity capital to build a house.

What documentation will be required:

purchase and sale agreement (or lease) for a land plot;
building permit;
House project;
estimate, which includes the cost of construction work, as well as all necessary materials;
an agreement with a construction company (or individual entrepreneur) that will build the house.

You will also need to open a bank account to which maternity capital will be transferred.

Note! There is no need to enter into a deposit agreement. Also, the financial institution should not charge a commission for the transfer.

List of documents

Federal Law No. 256 defines the list of required papers to obtain maternity capital:

documents confirming the right to the land plot within which construction is planned;
Certificate for maternal capital;
confirmation of the right to construction issued by the local administration;
contract agreement (if a third-party organization will build the house);
ID card of the owner of maternity capital and spouse;
marriage certificate (if the land plot is owned by the spouse);
a certified undertaking to register the constructed house as joint ownership (children must receive their shares).

Allocation of funds

Funds based on the Maternity Capital Certificate will be allocated only after the owner submits the required package of documents and they are reviewed.

To do this, contact the Pension Fund at the place of registration and submit an application stating a request for permission to dispose of state subsidy funds.

If some documents are insufficient, the Pension Fund has the right to independently request them from the necessary authorities.

Deadlines

An application for funds is considered for 2 months. After this, the money is transferred to the account of the Certificate owner or spouse.

The second part of the funds is issued six months after receiving the first. To do this, you need to submit an application again, providing documents confirming the completion of the first part of the work (building walls, laying the foundation, installing the roof).

You can receive the established amount when the child turns 3 years old. Exception: if a loan was taken out for construction/reconstruction, then the Certificate can be used to repay it earlier than this period.

Transfer order

Funds are received according to the following scheme:

opening a bank account into which the money should be received;
provision of documents to the Pension Fund;
receiving the first part of the funds;
construction;
provision of documents confirming the work;
receiving the second part.

If at some stage the regulatory authorities discover that the money was not fully spent for the stated purposes or was spent on other needs, then they have the right to demand the return of what they received.

How to use maternity capital to build a house

Depending on who will carry out the construction (a family independently or a construction organization), there will be differences in the question of what documents are needed to build a house using maternity capital:

Maternity capital funds are issued for the construction of a house in two equal parts if the construction is carried out on one’s own without the involvement of a construction organization.
In this case, the money is transferred to the account of the certificate holder or her spouse, provided that he independently carries out the construction on his own. The first transfer of the subsidy is made within 2 months after a positive decision is made by the Pension Fund of Russia in an amount not exceeding 50% of the size of the certificate. After this, no earlier than 6 months later, you can receive the remaining amount, subject to confirmation of the completion of basic construction work.
In the case of construction of an individual housing construction project by an engaged construction (contractor) organization, a construction contract . In this case, the entire amount of the certificate (453 thousand 026 rubles in 2017) can be transferred to the organization’s account at a time.

How to get money to build housing on your own

If you build it yourself, to receive the first part of maternity capital (in the amount of no more than 50% of its amount), you will need the following documents:

on the right to a land plot (ownership, lease, perpetual use, inherited possession, gratuitous fixed-term use) of the person who received the certificate or the spouse;
building permit;
a notarial obligation to re-register the individual housing construction object into the common property of family members (for all children, including subsequent ones) within 6 months from the date of receipt of the cadastral passport;
bank account details for transferring funds;
original maternal certificate, marriage certificate (if the construction is carried out by the spouse), passports of the applicant and her spouse.

To receive funds, you need to contact the branch of the Pension Fund of Russia (PFR) with an application for disposal of state subsidy funds in the prescribed form. MK money is transferred to the bank account of the person holding the certificate or his spouse within 2 months. If necessary, the Pension Fund also has the right to independently request documents from the relevant authorities.

To receive the second part of maternity capital for the construction of a house , after six months from the date of receipt of the first part of the funds, it is necessary to submit, along with a repeated application for disposal, documents confirming the completion of the first part of construction work (installation of the foundation, roof and walls).

Such a document is an act of inspection of the main work on the construction of an individual housing construction project. It is issued by the local executive authority that issued the construction permit, personally to the certificate holder or sent by mail.

How to build housing under a construction contract

You can build a house using maternity capital not only on your own, but also with the help of a construction organization (legal entity). a construction contract with her . In this case, the contract can be concluded by both a woman who has a certificate for maternal capital and her husband.

With this method of building a house, MK’s funds will be transferred in full in a one-time amount to the account of the construction company. To do this, an application for disposal of family capital is submitted to the Pension Fund of Russia and, along with the documents indicated above, the following is provided:

a copy of the construction contract;
bank account details of this organization.

It should be noted that you can receive state subsidies from the Pension Fund for the construction of a house by a construction organization only when the child reaches the age of three !