How to obtain or use maternity capital to purchase an apartment (housing) for up to 3 years without a mortgage?

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Published: 01/27/2018

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In order to buy an apartment or house using maternity capital funds, it is not necessary to resort to a mortgage loan. The state provides the opportunity to use funds from a maternity capital certificate to purchase housing, if you have enough of your own money. There is a procedure for such transactions.

• Rules and procedure for the transaction
• Restrictions on use

How to use maternity capital to buy an apartment without a mortgage?

In short, you first need to find an object of interest, then re-register ownership, make a down payment and submit documents to the Pension Fund. After the money is transferred, financial obligations to the seller will be fully fulfilled, and the property will be completely yours.

Options for purchasing a home without taking out a loan

Is it possible to use maternity capital for housing without a mortgage?

According to Federal Law No. 256 of December 29, 2006, citizens of the Russian Federation can exercise the right to use maternity capital to purchase housing without a mortgage if the living space meets one of the following criteria:

• individual house or apartment on the secondary market;
• apartment in a new building;
• apartment in a building under construction;
• a plot of land for building your own house on it.

Depending on the type of housing, you will need a different package of documents, which are provided to the regional office of the Pension Fund. We’ve figured out how to buy an apartment for maternity capital without a mortgage for up to 3 years, now let’s talk about the list of necessary documents that you will undoubtedly need to carry out the procedure for purchasing living space.

Deal stages

You will have to take several steps step by step to achieve the result:

1. choose a bank that has a mortgage lending program using maternity capital;
2. submit a preliminary application and attach the necessary documents for the borrower: information about income in the form of a certificate from the place of work or a declaration of income, fill out a questionnaire, present a copy of the work record book or a certificate of registration as an entrepreneur;
3. We provide information about the purchased housing : finished housing in a new house, under construction, an apartment on the secondary market or an individual house, its cost and information about the seller, and supplement it with documents on ownership or other rights to property. The bank must approve the property, since it is the property that will ensure the repayment of the loan, being pledged. A number of banks can approve an application without providing information about real estate, which must be used within 1 to 3 months - this time is given to search for the desired real estate option;
4. upon approval of the application, we present a full package of documents for housing: a certificate of ownership (extract from Rosreestr from July 15, 2016), a certificate of absence of encumbrances and debts for utilities, a certificate of the seller’s family composition, consent of the guardianship authorities in the presence of minor children, technical and cadastral passports, etc.
5. We notify the Pension Fund branch of our desire to purchase real estate. Submit an application in the prescribed form, attaching documents for the apartment and bank approval;
6. the bank will evaluate the property with the assistance of an independent expert. The appraisal results influence the loan amount; it is the price determined by the appraiser that is fundamental for the bank, and not the one offered by the seller;
7. conclusion of a mortgage loan agreement. In it, the parties stipulate the loan terms, amount, interest rate, monthly payment schedule, and the possibility of early repayment, including using maternity capital funds. The composition of the property that will be pledged to the bank is indicated, and a mortgage is drawn up;
8. simultaneously with the loan agreement, a housing purchase and sale agreement is concluded. An apartment acceptance certificate is drawn up and the down payment is paid. The bank is provided with a receipt from the seller regarding its receipt or a payment order for the transfer of money. Either the bank itself, lending the borrower the amount of the contribution, transfers it to the home owner;
9. documents are submitted to Rosreestr for registration. It is necessary to attach all the papers on the mortgage, purchase and sale, since two actions are registered: pledge and transfer of ownership from the seller to the buyer;
10. the subject of the mortgage and the life and health of the borrower are insured. This is a mandatory requirement put forward by banks in order to preserve property, as well as in order to repay the debt from the insured amount in the event of the borrower’s loss of ability to work or his death. An agreement with the insurance company will need to be concluded annually until full settlement with the bank;
11. A registered purchase and sale agreement and a certificate of ownership of the owner of maternity capital are submitted to the Pension Fund. It is advisable to register the purchased housing in shares for the parents and the child.

This is important to know: Allocation of shares to children after repayment of the mortgage with maternal capital

The documents submitted at the last stage are the basis for the transfer of money by the Pension Fund from maternity capital funds to repay part of the loan to the bank. The condition of registering real estate for all family members and (or) children after using MK funds for the purchase of housing is mandatory and must be fulfilled on the basis of a notarized obligation. Otherwise, in six months or a year, the prosecutor, according to a message from the Pension Fund, will oblige the homeowner to do this through the court.

List of documents

A special feature of buying an apartment without a mortgage with maternity capital is the fact that the seller must transfer the housing to the buyer’s name before receiving full payment. At the same time , the contract states that encumbrances are imposed on the housing until the buyer fully fulfills his financial obligations .

You will also need to allocate shares to your children in the new home after all encumbrances are removed. Is it possible to buy an apartment with a mortgage encumbrance or sell it, what risks there may be, read here.

At the stage of registration of the transaction, you will need to formalize an obligation to allocate shares. It is certified and executed by a notary.

Each Pension Fund branch has its own requirements for this document. To avoid any mistakes and to have it accepted the first time, it is recommended to take a sample form from the Pension Fund of Russia branch where you plan to submit the documents.

List of necessary documents for managing federal money

As you can see, documents play a huge role in the question: “How to buy a house with maternity capital for up to 3 years without a mortgage?”

If you are going to build a house, then you are given state funds in installments.

When you submit the necessary documents, you will be transferred 50% of the requested amount.

The second half will be transferred 6 months after you provide reporting documents on the intended use of the money.

It is worth mentioning separately about filling out the application. Increased demands are placed on him. It is necessary to write your full name, your status (mother, father or other representative), certificate number, SNILS, purpose of receiving money and the amount of the required amount.

Particular attention should be paid to writing the address. In this column you need to write the index, Russian Federation, name of the subject of the Russian Federation, district (if you do not live in the subject-forming city), city, city district, street, house and apartment number.

If the legal and actual addresses are different, then both must be indicated. If there is a match, the column with the actual address can be skipped.

The document verification process takes place within 30 days. The Pension Fund needs another 30 days to complete the transaction.

Read about the documents and the conclusion of the purchase and sale transaction here.

Submitting papers to the authorities

The next point in the instructions on how to buy housing with maternity capital without a mortgage is the submission of all prepared documents to the appropriate echelons of government. The obligation is drawn up by a notary.

To do this you will need to provide:

1. Passport.
2. Marriage certificate.
3. Birth certificates of children.
4. Title documents for housing.
5. Purchase and sale agreement (where the purchase and sale agreement for an apartment is drawn up, executed and signed, how to get a copy of the document, whether it is possible to register the transaction through the MFC, read here).

Since different Pension Fund branches have different requirements for this document, you will need to take a sample exactly where you plan to apply.

In order to buy an apartment using maternity capital without a mortgage, you must provide an extract from the Unified State Register, which is ordered from Rosreestr.

Its cost does not exceed 500 rubles and it is prepared in 3-5 days. Its shelf life is 10 days. The request can also be submitted electronically.

The delivery of the full package to the Pension Fund for the purchase of an apartment using maternity capital without a mortgage is carried out in person. You will need to make an appointment in advance through the official website of the organization or through the Gosuslugi.rf portal.

You can also try to get an appointment on the day of application, but you will need to come with a coupon about an hour before the branch opens, since no more than 10 coupons are issued per day.

All others are reserved by those who signed up online. Online registration is carried out 2-3 weeks in advance.

Purchasing a home under a sales contract

When purchasing a residential property using capital under a sales contract without using a mortgage or loan, you should notify the seller in advance ; many of them do not agree to this transaction because the funds are not transferred immediately. The agreement can be concluded in two forms :

• with deferment - the buyer pays a deposit, and then during the specified period the maternity capital is transferred to the seller by bank transfer;
• with installments - after making a down payment, the cost is paid in equal monthly installments.

The contract must indicate :

• that payment is made at the expense of maternal capital;
• what part of the area is paid by MSC if the cost of the premises is more than the amount of the certificate;
• the deadline within which the application will be submitted to the Pension Fund;
• the size of the down payment, the schedule and amount of subsequent payments - in case of purchase in installments.

You can purchase an apartment under a purchase and sale agreement using maternity capital without a mortgage in several stages :

1. A purchase and sale agreement is concluded, a deposit or a down payment is made.
2. The buyer registers ownership rights in Rosreestr, but the residential premises will be pledged to the seller until the cost is fully repaid.
3. The owner of the certificate applies to the Pension Fund office with an application and:
   Russian passport;
4. marriage certificate and passport of the spouse, if he is one of the parties to the contract;
5. an extract from the Unified State Register of Property Rights;
6. a copy of the purchase and sale agreement;
7. a certificate of the unpaid balance of the cost if the housing is purchased in installments;
8. a notarized obligation to allocate shares to the spouse and children, if the shares cannot be allocated immediately.
9. After full repayment of the cost, the deposit is removed from Rosreestr - you must provide an acceptance certificate indicating that the payment has been fully made.

This is important to know: Federal Law on the protection of family, motherhood and childhood

Obtaining real estate

The process of obtaining real estate is prescribed in the Housing and Civil Codes. After concluding a purchase and sale agreement or an equity participation agreement, the seller must transfer the property to you in Rosreestr.

Then you must submit the required package of documents to the Pension Fund.

Payment will be made within 60 days.

After the seller receives the entire amount, you will need to register the transaction with a notary and allocate a share in the new home to the children. What is the price of completing a transaction for the sale and purchase of an apartment with legal support and from a notary, read here.

You will also need to remove the encumbrance in connection with the full fulfillment of financial obligations to the seller.

And only then pay for housing with maternal capital without a mortgage.

Where can't you buy a home?

According to the Housing Code (Article 92), it is prohibited to buy housing in houses that are subject to demolition and are in disrepair; it is impossible to buy a room in a hostel if it belongs to a special housing stock and is not subject to alienation.

also consider federal regulations when purchasing a home . According to it, there must be at least 6 square meters of usable space per person.

It is also not allowed to purchase housing from close relatives. In principle, the entire 9th chapter of the Housing Code is devoted to the purchase of housing using maternal capital.

However, in other cases, you can use budget money to purchase residential real estate . If it is discovered that you used the money for other purposes, you will be subject to criminal and administrative liability.

Moreover, you will have to return the mat capital funds to the state in full. We hope our article helped you learn more about how to buy an apartment without a mortgage with maternity capital.

Purchase of secondary residential premises

Russian laws allow the use of maternity capital to purchase secondary housing. You can receive a certificate immediately after the birth of the baby; you can manage the amount of money or part of it once the child is three years old.

Important! The exception is repayment of a home loan. In this situation, permission to use the funds can be obtained at any time during the birth of the child.

When buying a home, you need to pay attention to certain points:

1. Not all apartment owners are satisfied with the option of waiting for payment for a period of several months. The need for such a period arises due to the transfer of a sum of money from a state subsidy to the seller of the residential premises. Before concluding a transaction, he must be warned about this situation.
2. The buyer of a secondary apartment must simultaneously take out a housing loan.

This is important to know: How can you cash out maternity capital without waiting 3 years in 2020

Advice! The acquisition option is to buy a home from relatives (sister, brother, grandfather, grandmother). It is prohibited by law to enter into a purchase and sale transaction with a spouse.