When a third child appears in the family, the spouses are already considered parents of many children. In this case, you should not miss an excellent opportunity to pay off your mortgage debt with government support.
The programs “Housing for Russians”, “Providing housing for young professionals (families)”, “Affordable housing” are actively working. Funds from the state treasury are spent to support large families, which are then redistributed to federal, regional and local programs.
In some cases, 3 projects can work at once in just one regional center. Some of them help to pay off the debt completely.
How is the benefit calculated?
The main task of assistance for people with 3 or more children is to provide them with a free apartment. But the queue for them is long, so more practical spouses choose alternative options, including social loans for the purchase or construction of residential property.
Lump sum payments are also used to cover the loan debt. You can calculate the amount of the subsidy yourself using the following formula: Cost of m2 in the region * housing area *% debt repayment.
To calculate the area, the following values are taken: 42m2+18m2 for each baby. It is important to understand that 42 m2 is given immediately for adults (mother and father), and after that the number of meters will increase depending on the number of children.
For a real example, we can take the following data for a family with 3 children:
40,000 rub./m2 * 96 m2 * 30% = 1,152,000 rub.
In this case, a percentage of assistance of 30% was taken, since this is a more realistic indicator. For those living in rural areas, the limit of assistance may double, but city residents usually do not receive more than 30%.
If the couple has already spent maternity capital funds, then they will look for money for the down payment on their own. You shouldn’t expect any concessions from government programs here, and the figure stands at 20% of . A married couple expecting their 3rd birthday can count on the first advance being reduced to 10% if they have not yet spent the funds
In some cities, regional family capital still operates (that is, in addition to 425 thousand rubles). It’s worth checking with the municipality about such matters. If a region supports a program to help large families, you can count on complete debt repayment.
Let’s say that in Mordovia they will pay off the debt at the birth of the 4th child, but with the 3rd they will pay off only 30% of the loan.
Quite good programs operate in the Kaluga, Sakhalin, Rostov and Kostroma regions and a number of other Russian regions. The main thing in this case is the definition of “large families”, because each region has its own concept of this word. For some, a family of 5 people is important, others ask for 6 people at once, where there are only two adults.
Since January 2018, a program has been in effect for Russians with 3 or more children. With the support of Russian President V.V. Putin. spouses can count on preferential mortgage interest rates. The preference period lasts for 5 years, and only for property purchased on the primary real estate market.
Requirements for loan applicants
The presence of three children does not mean that the family can go and take advantage of a subsidy from the state. There are also a number of criteria that allow large families to pay off their mortgage:
- Russian citizenship and permanent registration in the region where the social project operates.
- The age of children is up to 18 years, although they can take into account students whose term will be extended to 23 years.
- The area per person should not be higher than regional values. Each municipality in the region has its own rules; it is better to check them yourself.
- Having low-income status, although this is more of a comfort factor.
After collecting documents (passport, birth certificates, documents for rental property, personal property), they should be transferred to local social assistance authorities. If the application is approved, the spouses are placed in line for a benefit (free apartment), and a certificate for the subsidy is issued. The document can be used to pay a mortgage.
You shouldn’t expect instant money; it all depends on the level of funding of the local treasury. You can submit an application with a package of papers for assistance from the state from the beginning of the year to June inclusive.
An answer may be given within 14 days, but assistance must be used within six months from the date of issue of the certificate.
Large families in the Russian Federation currently have a significantly lower standard of living than families raising one or two children. This is usually due to the high cost of living, as well as increased requirements in terms of financial support for a large number of children. In addition, there are often cases where a family’s existing living conditions are seriously limited. In these cases, the state helps to improve such conditions.
How can the living conditions of large families today be improved and under what conditions can they receive certain benefits? What regulations should we focus on at present?
Criteria for determining a large family
In 1999, Federal Law No. 138 “On state support for large families” was under consideration in the State Duma and the Federation Council. One of the goals of this law was to create a unified federal mechanism for determining which family has the right to be called a large family. Since the law was never adopted, the right to determine whether a particular family is classified as having many children remains with the regions.
Today, the default number can include those families that raise at least three natural (that is, born in this family) or adopted children. If we are talking about regions with a high birth rate, where the birth and death rates differ in the direction of the birth rate exceeding the death rate, then a family that raises at least four or five children can receive the status of a large family.
The main condition is that all children taken into account are not adults. As soon as one or more children turn eighteen years old, a family may lose its status as a large family if the number of minor children does not correspond to the number established in the current legislation.
The number of minor children who must be raised in a particular family in order for it to receive the status of a large family is established in each at the level of legislation of a particular region. A change in the number of such children can be carried out based on how the birth rate in the region changes, as well as the state of the budget of a particular region.
The problem of mortgage lending to large families
However, we often have to talk about large families from the standpoint of the fact that their income level is insufficient to obtain a mortgage loan. This is one of the main reasons why banks most often refuse to provide such.
Another significant problem when purchasing housing using a mortgage loan for a large family is the presence of a large number of people who are dependent on the borrower or.
The more dependent persons a potential borrower or co-borrower has, the greater will be the interest on the loan provided and the amount included in the monthly payment, since the bank strives by all means to ensure that all borrowed funds will be returned.
It is for this reason that often a large family cannot pay such payments in full on time, as a result of which they may lose the purchased housing.
Another problem with mortgage lending to large families is the fact that often such families do not have real estate that could be used as collateral, or the mortgaged property (except for those purchased using a mortgage loan) is the only home.
In the event that persons who have taken out a mortgage loan for housing conditions do not pay all available payments on time, both residential premises may be seized by the bank for debts as pledged under the terms of the loan. For this reason, such a family may lose any residential premises in which they may live.
It is precisely because of the presence of such problems when providing mortgage lending for large families that the state decided to provide it to those families who decided to use just such a service to improve their living conditions.
New legislation on mortgage lending to large families
The state program “Housing”, which provided opportunities to obtain housing using preferential mechanisms for obtaining housing for categories of the population, was terminated ahead of schedule in 2017, since the limits of government injections for its implementation have now been completely exhausted.
However, the problem of insufficient housing, which the program was aimed at solving, continues to persist. It is for this reason that the previously existing program has been replaced by a new one, which implies the provision of housing to those families who decide to apply for preferential housing.
The rules for providing such preferential mortgage loans were approved by Decree of the Government of the Russian Federation No. 1710 dated December 30, 2017. The adoption of this program became necessary due to the loss of relevance of the previously existing “Housing” program, since from now on the main goal of the state was not just to provide those categories of citizens of the Russian Federation who are interested in such assistance, but also to stimulate high-quality social construction in terms of ensuring affordable and high-quality housing for various categories of the population. Such goals were approved by the President of the Russian Federation in his annual Address to the Federal Assembly and announced in November 2017.
In accordance with this Resolution, all persons who confirm their rights to assistance from the state in terms of obtaining housing can be issued a preferential mortgage. An indication of the formation of the relevant norms of the current legislation, as well as the creation of special conditions for the implementation of various forms of mortgage lending, including using a reduced interest rate - no more than six percent per annum for families who have had a second or third child since January 1, 2018 .
Contents of mortgage benefits for large families
Due to the fact that since January 1, 2018, the conditions for mortgage lending for large families have changed, it is necessary to imagine what the state now looks like.
The preferential programs that were in effect until 2018 are ending. Among such programs it should be noted:
- interest-free mortgage from the state. This program consisted in the fact that the state provided large families who needed to improve their living conditions with an interest-free loan in the amount of at least eighty percent of the cost of the purchased housing. This loan was provided for a period of five to twenty years and could only be used to purchase housing in a housing stock or to own a home. In some regions, this loan could be replaced by a mortgage issued in partner banks of this program (banks with partial state participation), and the interest on the loan taken was paid in full by the state. To date, this preferential program has completely stopped accepting applications from citizens, however, those applications that were submitted before January 1, 2018, and for which interest-free mortgage loans were not provided, are still being processed;
- mortgage repayment by the state. This program also stopped accepting applications on January 1, 2018, but processing of those applications that were submitted earlier continues. The essence of this program is that the state fully repays the mortgage debt of a large family, but only if it is recognized. In order to receive such preferential assistance from the state, a family declaring its need must: confirm its status as low-income, document the absence of debts to the bank, and also confirm that it has paid the bank at least thirty percent of the total cost of housing purchased using the target loan If all the above conditions are met, the state will pay off the remaining amount, and the housing will become the property of a large family.
A mortgage for large families is a special form of mortgage lending, which, after recent changes in current legislation, has become significantly easier in terms of repayment by such borrowers. However, the right to receive such a mortgage must be documented and proven that the family is able to pay for such a targeted loan.
The main problem of most large families is the lack of housing that is spacious enough to make all members of the large family feel comfortable. Of course, the most popular solution to this problem is a mortgage. It can be very difficult to save up for an apartment on your own, and saving if you have a large number of children is completely impossible. Sometimes it is difficult for parents of a large family to save up even for a down payment. There are quite a lot of such families in Russia where the number of children is more than 3, so the question of how to get a mortgage for a large family remains relevant.
Preferential mortgage for a large family: who is entitled to it?
We know that a family with 3 or more minor children is usually considered large. However, on the territory of our large country, these rules may change depending on the subject of the Russian Federation. According to the law, these things are decided at the regional level, and the cultural and national characteristics of a given region are taken into account. In other words, in the Moscow region a family with 3 children will have many children and can receive benefits, but in Ingushetia they will not. You need to give birth to at least 5 children there to get this right.
It must be remembered that these standards are constantly changing. At one time you had to have five or even more children to receive subsidies, then these numbers can drop to 3 depending on the demographic situation. Therefore, just in case, make sure whether you will become a large family after the birth of your next child or not.
The situation is also ambiguous when parents divorce and separate their children. If, after a divorce, the official guardianship of each parent involves less than 3 children, the family loses its status as a large family. If there are 6 or more children and each parent gets 3 children, everything remains valid.
Also, if you marry a person who has more than 3 children, the family is considered to have many children. Adopted children also count.
Typically this only applies to children under 18 years of age. The same rule applies to participation in the preferential mortgage program for large families. However, in some (rather rare) cases, children under 23 years of age who study full-time and live with their parents are considered.
Mortgage for a large family: what is this program?
For a long time there was no separate program for large families. There was only a program called “Affordable Housing,” which was designed for several categories of citizens: military personnel, teachers, doctors and other public sector workers, as well as young and large families. This program appeared in 2013 and has currently been extended until 2016. Banks, competing with each other, reduce rates and offer favorable conditions.
Sberbank was the first to offer such a program. He significantly reduced the interest rate for program participants, extended the loan terms, and reduced the down payment. This is important, since it is extremely difficult for a large family to pay 20-30% of the cost of an apartment at once. For a family of 5-7 people, they usually buy larger apartments, and therefore more expensive apartments.
In 2015, several state programs are being considered and developed, under the terms of which the percentage will be even lower, and part of this percentage will be paid from the state budget. It is worth remembering that the interest rate alone is a significant benefit for a large family. Social mortgage offers an interest rate that is almost two times lower than for other bank clients.
How to get a mortgage for a large family: possible options
Large families can consider several mortgage options and choose the most suitable one. The first and most important condition for obtaining a profitable loan is whether you have a document confirming your social vulnerability. Such papers are usually issued by the Pension Fund. The presence or absence of this document allows you to determine further steps.
- If you have such documents and are also a participant in the federal housing program, you receive significant benefits when applying for a mortgage. The state will return part of the interest to you. This is the most profitable option for purchasing housing for a large family.
- You can participate in the “Young Family” or “Affordable Housing” program if you are a state employee. There will be no payments from the state, but the conditions are much more lenient. The bank will not only reduce your interest rate and reduce the size of the down payment, but will also provide other benefits, for example, a delay in the birth of a child or an even lower rate when buying a home in a new building. For a family with three or more children, these conditions can make paying off the mortgage much easier.
- If you did not receive subsidies from the state and interest was not paid from the budget, you can safely count on a tax deduction in the amount of 13% of the cost of the apartment. This is quite a decent amount of money, which can also be used to pay off a mortgage.
- You can calculate everything in such a way as to pay off part of the mortgage with maternity capital. All banks without exception agree to this. And there is no need to wait 3 years from the moment the child is born. However, you need to remember that the tax deduction does not apply to this amount. If you used maternity capital for a down payment or payment, these 425 thousand are subtracted from the total cost and then a tax deduction is calculated from the remainder.
- Very often, there are various local programs designed to help low-income families, large families, and state employees purchase housing on favorable terms. Find out about the availability of such programs in your city, look for a suitable bank.
Mortgage for a large family: conditions for obtaining
If you are participating in the assistance program specifically for large families, and not just in the general program for providing affordable housing, the first condition will be the presence of 3 or more children under 18 years of age with birth certificates or passports, if any. It is advisable that you are officially married, because your spouse necessarily becomes a co-borrower, which means the total family income is taken into account.
Applications from large families are processed quickly, within 2-3 days. The bank's positive decision will also be affected by solvency. In addition to the total income of all officially working family members, you can attract grandparents to become co-borrowers, then their income is also summed up. In general, large families are allowed to attract up to 6 co-borrowers.
When participating in the Young Family program, one of the spouses must be under 35 years of age and the marriage must be officially registered.
Of course, the client’s credit history will also be taken into account. If there are small debts that were soon paid off, this will not play a big role.
Both spouses must be citizens of the Russian Federation and have passports with registration in the country.
If you are participating in a federal program and relying on subsidies, you must have documents confirming your need for housing. They can be obtained if the family does not own an apartment, it does not meet the standards, or it is so small that there is a negligible amount of space per family member.
Mortgages for large families with subsidies
Subsidies assume that part of the cost of housing will be paid by the state. Of course, there are too many people who want to receive such benefits for the state to issue compensation to everyone. Therefore, assistance is primarily aimed at families participating in the federal program and who joined the waiting list before 2005.
Mortgage benefits for large families can take different forms. For example, you can receive compensation in the amount of 1/3 of the cost of the apartment. Or another type of subsidy - the state pays for 30 square meters of living space.
Since the state provides part of its funds, it will closely monitor the issuance of such mortgages. The purchased property will be especially carefully checked for compliance with standards and legal purity.
Such a social mortgage for a large family, where there is a share of budget money, has its own characteristics. You cannot, for example, invest capital, then receive a subsidy, and then a tax deduction for the entire cost of the apartment. The right to receive a tax deduction is either completely absent, or all state support funds are subtracted from the cost, and then the percentage of the balance is calculated. It is worth clarifying this issue with the tax office.
Preferential mortgages for large families: Sberbank, VTB 24
As mentioned above, Sberbank was one of the first to offer an affordable housing program. New programs are still being developed, so check all the details at your nearest bank branch.
Typically, the down payment is 20-30%; Sberbank can reduce the percentage for a large family to 10%. Typically, mortgages are issued for 30 years. The bank will consider the terms individually. Rarely, there have been cases when a loan was issued for a period of up to 50 years, of course, if age and income permit.
Mortgages to large families from Sberbank are issued at a reduced interest rate, 11% for secondary housing. If you decide to purchase an apartment in a new building, the percentage will be even lower, 6-8%.
If you participate in the federal program and have benefits, the state will return a third of the cost of the apartment. The money will be transferred to a bank account and will be used to pay off the mortgage. If you have another child, you may get another 20% off the loan amount.
Mortgage compensation for large families is issued only if there is a real need for housing and there are no other ways to purchase housing. If you have your own apartment that meets the standards, it will be difficult to obtain subsidies.
A mortgage for a large family at VTB24 also has a number of advantages. The amount that the bank can issue has a fairly large limit, up to 8 million rubles, depending on the region and your total income. The interest rate will be only 10.2%, and the down payment will be 20%. You can always use maternity capital to repay a loan or down payment, if this amount is not less than the required amount.
How to get a mortgage for a large family: documents
If you have already decided to enter into an agreement with the bank, you may need the following documents.
- Passports of the borrower and co-borrowers, copies of all pages
- Marriage certificate
- Birth certificates of children
- Certified copies of work records
- Income certificates for all working family members
- Certificate for maternal capital (if any)
- Certificate of a large family indicating the number of children. This document must be received in advance. You can find out how to do this from your city administration.
Of course, this list may vary depending on the requirements of a particular bank.
Mortgage for a large family without a down payment
A down payment is often a stumbling block when purchasing your own home. Considering the size of a decent apartment for a large family, we can assume that 20% of its cost is a significant amount. Therefore, future borrowers often look for options for obtaining a loan without fees.
It must be said that not a single social mortgage implies the absence of a down payment. As a benefit, you may be able to reduce its size, but nothing more. Banks are commercial organizations. Although they often follow government programs, they strive first to protect themselves from financial risks and make a certain profit, and only then create attractive conditions for you to get clients. The down payment is the very same guarantee that you have saved up some of the money, which means you are solvent and, despite the large number of children, can save a certain amount.
Of course, you can look for banks that issue mortgages without a down payment, but the conditions of such a loan will be much more stringent. The interest rate will be much higher. This is done to prevent various risks. If you do the math, you will understand how much you will overpay with such a mortgage.
Maternity capital can be used as a down payment. This is a convenient and fast way to get a mortgage from any bank. Of course, you will have to wait until the child turns 3 years old, but you will be able to invest this money profitably, get housing and even reduce your interest rate if this amount is more than what the bank requires as a contribution.
You should not take out loans or credit cards to put this amount into a down payment. Paying such sums monthly for a large family will become unbearable. You risk ruining your credit history, going to court and losing your home, which, as you understand, is collateral.
Parents with 3 or more children often need improved living conditions. The state and commercial banks are meeting Russians halfway, providing the opportunity to take out a housing loan on favorable terms. It is important to familiarize yourself with all the offers of credit institutions in order to choose a preferential mortgage.
Preferential mortgage lending programs for large families
There are several types of programs that offer mortgage benefits for large families. You can familiarize yourself with bank offers and lending conditions in the following table:
| Program name | Conditions for issuing housing loans |
| Help for large families under the “Young Family” program |
|
| Social mortgage from AHML |
|
| Preferential bank programs for large families |
OTP bank:
Alfa Bank:
|
| Regional subsidy programs | Udmurtia:
Krasnoyarsk region:
Penza region: One-time payment – up to 500 thousand rubles. for the acquisition, major repairs, reconstruction of housing. |
Legal regulation
Benefits for parents raising several minor dependents, relaxed housing loan requirements are provided for by Federal Law No. 256-FZ of December 29, 2006 “On additional measures of state support for families with children.” The rules for low-income citizens with many children receiving state support when purchasing real estate are stipulated in Article 49 of the Housing Code of the Russian Federation “Provision of premises under a social tenancy agreement.”
Preferential mortgages for large families at 6% per annum are regulated by Decree of the Government of the Russian Federation dated December 30, 2017 No. 1711 “On approval of the Rules for the provision of subsidies from the federal budget to Russian credit organizations and the Joint Stock Company “Housing Mortgage Lending Agency” for compensation of lost income on issued (purchased) ) housing (mortgage) loans provided to citizens of the Russian Federation with children.”
Mortgage benefits for large families
- reduced loan interest rate;
- reimbursement of part of the mortgage by the state;
- reduced initial payment;
- long loan repayment period;
- debt restructuring with deferred payments for up to three years when a new baby appears in the family.
Reduced mortgage interest rates
Banks working with government programs to subsidize the purchase of housing for low-income Russians with several children provide discounts on interest rates when issuing housing loans. You can compare offers from leading credit institutions below:
Mortgage repayment for large families
Citizens in need of urgent improvement of living conditions can take advantage of government subsidy programs. Maximum subsidies from the federal budget are 35–40% of the cost of real estate. Cost of 1 sq. m of residential property purchased from developers is established by the regions, but should not exceed 35 thousand rubles.
The subsidized limit of living space per person for a social unit consisting of three or more people is 18 square meters. m.
The amount of subsidies and benefits from the state, depending on the number of household members:
Reducing the amount of the down payment and repayment using maternal capital funds
When purchasing an apartment, Russians raising several minor children can use maternity funds to pay off the first payment on the mortgage loan. Current offers from banks can be seen in the following table:
Revision of interest downward upon the occurrence of certain conditions
Lenders can reduce mortgage overpayments for their borrowers. Conditions of leading banks and the amount of rate reduction:
Video
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They want to help large families with the purchase of housing - to ease the terms of mortgage loans. The head of state Vladimir Putin recently came up with such an initiative. As you know, almost half of apartments today are purchased with the help of a mortgage, so this proposal is very necessary. I propose to talk today about how exactly they will help and who can count on preferential conditions.
So, what is this preferential mortgage program?
I plan to provide assistance in paying off a mortgage loan in the form of subsidizing the interest rate on the loan: everything that is more than 6% per annum will be paid by the state from the budget. That is, they won’t give you real money, but the monthly payment on a loan on preferential terms will decrease - now the rate is on average 11%, and if you subtract 4% from it (they are compensated to the bank from the budget), then the payment will be almost half as low. Agree, quite tangible help for families with children.
Who can count on help?
Families who will have a second or third child after January 1, 2018 and up to December 31, 2022 inclusive. They will be able to take out a mortgage loan at a rate of 6% per annum or refinance an existing one, that is, refinance with another bank under new preferential conditions. Important: if you already have an existing mortgage by the time your second child is born, the rate will not be automatically reduced - to receive a preferential rate you will need to refinance the loan.
Will the rate be reduced to 6% until the end of the mortgage?
The rate reduction is provided for a certain period: for three years from the date of issuance of the mortgage on preferential terms at the birth of the second child and again for years from the date of issuance of the loan after the birth of the third baby. Let's look at the example of two families - Alexey and Irina Sizov, who already have a mortgage, and Ivan and Svetlana Kuznetsov, who have not yet taken out a loan for housing. Ivan and Svetlana have a second child in 2018, and they can get a mortgage at a preferential rate of 6% - the remaining interest will be paid by the state for three years after receiving the mortgage. The Sizov family already has a mortgage on their apartment, and in order to reduce the rate to 6% for three years, they need to refinance the loan - that is, contact a bank that will participate in the program and take out a new mortgage loan to cover the old one, but at a preferential rate . If the Sizovs and Kuznetsovs already had two children each and third children were born, the rate would be reduced by five years.
What if during the program, first a second and then a third child is born?
The program will be valid from January 1, 2018 until December 31, 2022, that is, five years. If during this time the family, after the birth of the second child, has already received a preferential mortgage at 6%, and then the third is born, then the subsidized rate will be extended for another five years from the end date of the subsidy for the second child. If the third baby is born after the subsidy for the second child ends, the rate will be reduced again for five years from the date of birth of the third child.
At first glance, it turns out to be a little complicated, but in reality it promises to be a good help for families - just for the period while the mother is on maternity leave. I note that the average repayment period of a mortgage loan is just 5-7 years, which means that many families will have time to pay off the mortgage during the period the preferential rate is in effect. By the way, young families whose first child will be born after 2018 will also be supported - exactly how.
What do you think about this mortgage support? Do you think lowering mortgage payments will make life easier for families with children? Are such terms – three and five years – sufficient?