Not all potential mortgage borrowers can take a mortgage on standard terms. Then social mortgage comes into play for the poor and most socially unprotected segments of the population. Social mortgage programs are designed to ease the financial burden on these categories of citizens.
The burden of conventional mortgages and socially vulnerable categories of the population
The conditions of standard mortgage lending in the main, most well-known banks of the Russian Federation (Sberbank, VTB 24, Gazprombank and others) may indeed be too expensive for many of our compatriots:
- the need for a lump sum payment of a large payment – a down payment, the usual amount of which is 20-25% of the mortgage amount (if a client borrows 1 million rubles to buy housing, then he will have to pay 200 -250 thousand rubles immediately);
- serious overpayment percentage. The usual annual interest rate is 14%. With a mortgage of 1 million rubles, the overpayment interest for only 5 years will be 700 thousand rubles, and if you consider that the standard term of the mortgage is 12-14 years and the payments are almost always annuity (ie annual interest is always considered from the starting loan amount, then the overpayment will be 100-120%;
- frequent bank requirement – additional security, not counting the mortgage of the real estate itself. Many do not have any property that could be offered to the bank as an extra. pledge;
- it’s not just a full percentage overpayment. Other families agree to eventually give the bank the double market value of the acquired housing, so that it becomes their full-fledged property. Just an elementary borrower can not pull the amount of monthly contributions, which consist of two points – in repayment of the loan and in repayment of annual interest.
The following categories of residents of the Russian Federation are considered to be socially vulnerable:
- young families;
- can help a large family;
- young state employees, ie, those who soon after graduation began to work for very prestigious state. positions, such as a teacher in a comprehensive school;
- single mothers / single fathers, ie when the child is forced to raise one parent;
- just poor citizens, ie, those whose income is comparable to the subsistence minimum or even below it;
- the students.
The essence and conditions of social mortgage
Practice has shown that in reality social mortgage loans have a chance to get only a young family and some state employees. Helping a large family is also possible, but much depends on the number of children and parents. So, a family with two parents and two children with many children is not considered. But a single mother with three children can be registered as a mother of many children. Plus, it will take into account the fact that the provision and education of children is carried out by one parent. It is also very difficult for the needy to join the mortgage assistance program. As in the Russian Federation the system of social control is not developed. Categories may overlap or be incomplete. A young family may be low-income, but without children. Or having many children, but with a normal income. What is the essence of social mortgage? The bottom line is that the state provides material assistance in various forms as part of targeted social projects. In the field of social mortgage it can be expressed:
- lowering the interest rate to very low (for Russia) levels – 10%, 9% and even 8%;
- the absence of a down payment or its payment in cash received under other state support programs. Most often it is maternal capital;
- stretching the mortgage in time, which significantly reduces the amount of monthly payments;
- Sometimes annuity payments can be replaced by differentiated ones, as a result of which the amount of monthly contributions will be less and less every year;
- The mortgage agreement may provide for broader solutions to payment problems if the borrower (s) are no longer able to pay on the mortgage in the previous mode (delay for valid reasons).
Borrower’s specific actions
In all situations, the bank incurs financial costs. However, the social mortgage mechanism implies that the state budget funds will cover these costs. But provided that the credit organization must have state accreditation. If the bank is completely private and has a private policy, then the introduction of social mortgages is possible only at the expense of own funds of the financial organization. Social capital options are most widely represented in fully state-owned banks (for example, the Agricultural Bank), as well as in large banks that maintain close cooperation with government agencies (Sberbank, VTB 24). How to take a mortgage for a poor family, a young family?
- Step one. Visiting the administration. It is advisable not to contact the city, but immediately to the regional administration. Although the basic information should be in the city. Local authorities will provide information to potential borrowers, which bank is better to apply for special mortgage loan and what are the main programs for such housing loans. The chances of getting such a mortgage depend not only on how the client fits the right category. Much decides and regional policy. For example, if there is a shortage of some specialists, social mortgage lending may be launched first of all for them.
- Step two. Obtaining a document (certificate, certificate) proving the right of the borrower to use a preferential mortgage. The type of document depends on which category of socially vulnerable layers the borrower falls into. If this is a young family, then you need evidence of an official / civil marriage. When connected with children, we need birth certificates. Single parents get up in the social. services on the account, where you can take an extract on this status. To use matkapital to the package of documents you need to attach a certificate for its receipt. And so on. However, in the bodies of state and municipal housing supervision and control in any case, you must take a certificate confirming participation in the social housing program. The rest of the standard documents – passport of the Russian Federation, certificate 2-NDFL,
- Step three. Examine all relevant offers in the selected bank. In principle, it is possible, bypassing the administration, to immediately contact the bank with a request to advise on the availability of preferential mortgages. In principle, the procedure for issuing a housing loan of this type differs little from a conventional mortgage. Is that the most favorable conditions that the bank will provide the client on the basis of the relevant document.
Requirements for young / large / low-income families
Separately, it is necessary to emphasize the point that the “zone of benefits” is legally limited to an area of 18 square meters. meters per person. If residential real estate is purchased, where the area per resident will be larger, then the bank calculates: all payments for the area at which 18 “squares” per person go, take into account benefits, and the borrower pays for the remaining area according to the standard scheme. Consider the most common case: a young family with or without children. In order for state support in terms of housing to become possible, a number of conditions must be met:
- * spouses (or one of the spouses) must be in the older than 35 years;
- the family does not have its own living space, but rents a house or lives in a communal flat;
- low-income status, ie, the general family budget is below a certain level (in each region it varies somewhat, clarified in the administration). If the status of a low-income family is confirmed, then borrowers can expect to receive a housing subsidy that can be spent to pay the down payment. But we must bear in mind that such a subsidy, like the federal level matkapital, is issued only once;
- if the family wants to get social. Mortgage on the status of many children, then there should be at least three children. And it does not matter whether the parents are relatives or they are guardians;
- * for each family member should account for 14 square meters. meters of living space or less;
- the family lives in real estate, recognized emergency.