If you are experiencing temporary difficulties or cannot repay your mortgage loan obligations on your own, banking institutions have several government support programs. Not all categories of the population will be able to take advantage of the offer. First of all, young and large families have the right to pay off debt using budget funds. But the applicant will need evidence of the need to improve living conditions. Let's consider the main conditions and requirements of the project.
State support - how to get it
Banking institutions are ready to issue mortgages on preferential terms. But to do this, the potential borrower must provide proof of stable income. You can receive support from the state if several conditions are met:
- The applicant has no other property. Ownership of a share of real estate is allowed, but not more than fifty percent per family member.
- You can count on approval of an application only for a certain type of object. For example, if you want to purchase a five-room apartment in the center of Moscow, your request will be rejected. To conclude a mortgage agreement, the cost of one square meter should not exceed the average market price by more than sixty percent.
- In 2017, according to the Government Decree, borrowers can purchase a house instead of an apartment. But only with limited living space. For example, if there is one child in a family, program participants have the right to buy a one-room apartment with a total area of no more than forty-five square meters. Applicants with two children are provided with assistance to pay off the cost of a two-room apartment. The area of the property cannot exceed sixty-five square meters. Families with three children can get a house. The total living area is allowed up to eighty-five square meters.
- Please review the terms and conditions carefully before submitting your application. Many families have already been turned away. The fact is that a residential mortgage must be issued for at least one year before the restructuring of debt obligations.
- When considering a package of documents, clients’ personal data is also taken into account. One of the spouses must be under thirty-five years of age.
If you have documentary evidence of the “Large Family” status, all restrictions, as well as conditions on the cost and size of the house, do not apply.
The nuances of repaying a mortgage for young families
Government support is provided under strict control. Therefore, if you are counting on budget funds, you need to prepare for a thorough check of personal information. Let's consider all the features of repayment:
- The allocated funds are not cashed out. It will not be possible to spend government assistance on other purposes. The amount is transferred to the credit account of the financial institution.
- Even after signing the contract, you can count on budget funds. For example, if another child is born in the family, an additional subsidy is allocated under the terms of the program. The client receives money to repay the mortgage loan. The amount of assistance does not exceed five percent of the transaction value.
- Participation in the program is documented. If the decision is positive, the client receives a certificate.
- If you got a mortgage from a small or regional bank, you don't have to worry. Unlike standard preferential conditions, the government allocates money to pay off mortgages not only in the largest institutions in the country.
- A family has the right to receive assistance only once.
Special conditions are provided to young families.
Advantages of preferential mortgage lending using the example of Sberbank of Russia
One of the largest and most stable banks in Russia offers favorable mortgage conditions:
- If a child is born in the family, the family can defer payment of mandatory payments until the age of three.
- Families who have had a second child can also delay payments for a longer period (up to five years).
- A couple with children must pay a down payment of ten percent of the cost of housing. Families without children will need to contribute an amount of fifteen percent.
- If clients can repay the debt in one payment, Sberbank of Russia offers favorable conditions. You will not need to pay a commission for each subsequent month of the contract period.
- The annual mortgage rate ranges from 9.5 to 15.25%.
After the birth of the second child, the couple can exercise the right to pay off obligations using family capital.
Limitation on the amount of state aid
The program does not provide for a maximum allowable mortgage payment amount. There are several nuances to covering debt obligations of a young family to the bank:
- If a child appears in the family, the spouses can count on paying off the living space per eighteen square meters.
- When another child is born, additional funds are allocated to pay for eighteen square meters.
- The family can count on repayment of the full cost of housing. But provided that the couple gives birth to a third child, and the cost of the selected transaction object does not exceed the market average.
But there are some subtleties here too. Each region of the Russian Federation has its own maximum amount for closing mortgage obligations. For example, residents of a metropolis can receive a subsidy in the amount of one million rubles. In a small province, the permissible repayment amount does not exceed six hundred thousand rubles.
Who else can count on government assistance?
Mortgage repayment on preferential terms is also provided to other categories of citizens:
- a married couple became guardians or adopted minor children;
- disabled people or parents of disabled children;
- persons with the status of combat veterans.
A borrower with a good credit rating may also find himself in trouble. For example, losing your permanent job. In this case, he has the right to apply for loan repayment using budget funds. But for this you will need supporting documents:
- Over the past three months, total family income has decreased by more than thirty percent.
- The size of the monthly payment has increased compared to the initial payments by thirty percent or more.
- After paying the mortgage obligation, the monthly income is less than two subsistence minimums per family member. The value is set depending on regional policy.
After checking the information provided, the borrower can apply to initiate debt repayment using public funds. But there is no need to hope for a restructuring of the full amount of debt. The allocated money may only be enough to reduce the credit burden. The bank may also reduce the annual rate.
A mortgage in Russia is a very common way to purchase housing. Since the cost of real estate is too high, most of the population cannot afford to buy an apartment or private house on their own, paying the entire amount at once. A loan issued by a bank becomes a solution to the housing problem for many, but it is burdened with interest, and given that the mortgage will have to be repaid for years, this is a very large amount of overpayment in the end. In addition, if for some reason the borrower cannot continue to pay it, he may lose both the amounts already paid and the real estate itself.
Since the state is also concerned about solving the housing issue for the population, the government has developed and approved a social program, thanks to which persons who have taken out a mortgage for an apartment, house or its construction can receive assistance. In essence, this is a direct return of part of the funds paid for the loan.
The subsidy is not provided to everyone, but only to certain categories of citizens who are in financial difficulty. Today they have the right to claim 600 thousand from the state to pay off their mortgages.
The key conditions for taking part in the social program are the fact of a significant decrease in the borrower’s income due to the crisis and an increase in loan payments, which is important if it was taken out in dollars.
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How to understand the conditions?
The key conditions need to be considered in more detail in order to understand what criteria citizens who want to receive 600 thousand rubles from the state treasury to pay off their mortgage must meet.
| Possible conditions | What does it mean |
|---|---|
| The income level of the borrower for whom the loan was issued has fallen | The due amount of debt will be written off after the payer provides evidence that income over the last three months has been reduced by more than thirty percent compared to the level before the loan was issued. The purchasing power of the borrower is not taken into account at all. |
| Increased monthly payment amount | Applicable to borrowers whose mortgage is issued in dollars. Despite the fact that according to the documents nothing has changed, due to the fall in the ruble exchange rate, in practice it has increased significantly. You can receive money from subsidies only when the amount of such payment has increased by thirty percent or more. At the same time, there are two ways to implement compensation - write off the debt in the amount of up to 600 thousand or halve the amount of monthly payments for a year and a half. The choice of option remains with the payer. |
To whom can part of the debt be written off?
To have your mortgage payment reduced, you must be in one of the following categories:
- A family or single mother (single father) with one child or more, as well as official guardians of children under sixteen years of age;
- A participant in hostilities who has documents confirming this fact;
- A disabled person, as well as guardians and parents of a child with disabilities.
Previously, public sector employees working in the field of science, as well as employees of defense enterprises and participants in government credit programs could apply for 600,000 rubles to reimburse mortgage payments, but since 2016 they have been deprived of this right.
Despite the fact that all of the above requirements are key, these are not all the reasons to return such a significant amount of loan repayment. To make a positive decision you need:
- Have any other real estate owned by the borrower;
- Maintain the time interval from the date of receipt of mortgage funds to the purchase or construction of housing;
- Belongs to one of the categories listed above;
- Take into account the area of real estate that was purchased with loan funds.
You should know these conditions in order to understand what you can really count on.
Total area value
Six hundred thousand rubles are written off on the loan, taking into account the class of housing purchased, in particular when it comes to an apartment. According to the law, the state will reimburse part of the debt only for that property that is classified as economy class, that is, does not exceed:
In addition to the footage, the cost of the apartment also plays a significant role. So, for example, when a mortgage is issued for the purchase of housing at a cost that is sixty percent higher than the market price, social payments will not be made. You will have to repay this loan yourself. The only exception may be a large family with three or more young children. For them, the area and its price are not taken into account.
An equally important aspect in approving a subsidy to write off 600 thousand is the date of purchase of the apartment. In accordance with the new edition of the social program, you can count on assistance only if the borrower applies to the state for a subsidy no later than a year after concluding an agreement with a banking institution.
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Write-off methods
If you fit the required category and meet all the requirements, you must go to the bank where the mortgage was issued. There, a corresponding application is submitted regarding reimbursement of funds from the state social fund. It must be accompanied by a list of documents, which can be found later in the article.
After the banking institution reviews the submitted papers, the payer will be offered one of the options to choose from:
Despite the existing requirements, even if you do not meet one of them, you can still apply for participation in this social program. However, an exception is made only if we are talking about a family waiting for a new addition. After the birth of the first child, part of the mortgage debt will be written off in the amount of the cost of 18 square meters of purchased living space.
Few people know about the possibility of receiving government assistance to pay off mortgage loans. Last week, Prime Minister Dmitry Medvedev signed a decree that provides for the allocation of 731 million rubles for the corresponding program. This money will go to help struggling mortgage borrowers. Getting funds is not easy, but it is possible.
Under what law is assistance provided?
The government decree on assistance to certain categories of borrowers in difficult situations, number N-373, was issued on April 20, 2015. The main reason for its adoption was mortgage agreements concluded in foreign currency. For such loans, there was a multiple increase in payments after the ruble.
On August 11, 2017, the program was extended by government decree N-967. This document clarified the criteria for providing assistance, available amounts, and other parameters.
Who can get help?
According to the terms of the program, an applicant must meet the following six criteria:
- Be a Russian citizen falling into one of the following categories:
- parents of minor children (or their guardians);
- disabled people or parents of disabled children;
- having dependent persons under 24 years of age who are studying as inpatients, including graduate students, interns, adjuncts, residents, etc.;
- combat veterans.
- There is a sharp increase in loan payments and an associated strong drop in the borrower's real income. The amount of monthly loan payments has increased by at least 30% compared to what was calculated at the conclusion of the agreement. The amount of family income after deducting monthly payments for three months should be no more than two subsistence minimums per family member.
- The collateral must be an apartment or a claim in accordance with the agreement for participation in shared construction.
- The area of the apartment should be small. For a one-room apartment, a maximum of 45 square meters. m, for a two-room apartment - 65 sq. m, three-room - 85 sq. m.
- An apartment purchased under a mortgage agreement must be the only home. It is also possible for the family to have an aggregate share of a maximum of 50% in one other residential property.
- The mortgage agreement must be concluded no earlier than 12 months before submitting the restructuring application.
Do you have to meet all six requirements at once?
No. It is enough to meet at least 4 of any criteria from the list. However, in this case, an interdepartmental commission will decide on possible payments.
How much money can you get?
The maximum amount of loan assistance is 1.5 million rubles, but not more than 30% of the original loan amount.
Who should I contact?
The process of assistance to mortgage borrowers is managed by the Unified Institute for Development in the Housing Sphere DOM.RF (former name - AHML). It is to his accounts that budget funds are transferred, which are then distributed by the institute in accordance with the decisions it makes.
First, you need to check on the institute's website whether your lender is among the participants in the program.
If your bank is on the list, you will need to come there for a consultation. Bank employees should tell you what documents you will need. Usually you need quite a lot of documents, and for each specific case they can be different.
Having collected all the required certificates and certificates, you need to come to the bank again. There, an application for restructuring a mortgage loan is filled out, and a package of documents is provided to the manager. After this, it takes up to 30 days for the interdepartmental commission to make its decision.
What's next?
This program does not provide for full repayment of the loan, but its participant receives very big advantages.
Conditions for the remaining payments will be significantly improved. All currency agreements will be converted into ruble ones. At the same time, the maximum lending rate for former foreign currency loans is 11.5%. For ruble loans, the rate applied by banks at the date of restructuring will be used.
Part of the debt will be fully repaid at public expense (the amounts are given above).
Finally, the borrower will be relieved of the need to pay previously accrued amounts of penalties.
How many people received help?
The program began operating in 2015. According to DOM.RF, 20,366 families were able to successfully use it. According to the Central Bank, by the beginning of 2015 there were 25 thousand foreign currency mortgage agreements in the country. So many people actually received help.
Debt restructuring is a very difficult process. However, if you need to pay off your mortgage, it's worth a try.
Unexpected and very unpleasant situations related to finances can happen to anyone. Often such troubles occur with a reduction in the amount of funds received, which affects many aspects of life. The same can happen with a mortgage. Due to the crisis, it has become very difficult to pay the loan debt on your own.
Previously, you had to “tighten your belts”, take on debts or get a second job, but today there is another way out - repaying the mortgage at the expense of the state in cases where a decrease in income occurs for objective reasons. This makes it possible to keep the housing received on credit.
To support residents of the country, giving them the opportunity to cope with housing issues and reduce the cost of mortgage debt, the state allows them to participate in one of the special programs. The general goal of such forms of state support is to improve the living conditions of Russians.
Government program
All the rules of the state program are described in an official document signed about two years ago. In the current version, all clauses that previously complicated participation in the program and allowed the introduction of fraudulent schemes into mortgage repayment at the expense of the state were removed. Previous versions contained shortcomings, which were changed in the current program rules.
The state-funded mortgage repayment program now offers:
- Debt reduction by 600 thousand rubles.
- Change in a loan taken in foreign currency at the value of the ruble of the Central Bank of the Russian Federation.
- Reducing the duration of making regular payments by up to one and a half years.
Refunds
From the above list, mortgage repayment at the expense of the state through direct allocation of funds is one of the most effective forms of assistance. In this case, the client’s status must be noted before the method of debt repayment is determined. Often the preferred method is to repay some portion of the principal. At the initial stage of the program, it was planned to reduce the debt by only 10%, but since the end of last year the state has already returned 20%.
Writing off part of the debt
The difficult situation associated with the fall in the cost of raw materials on the world market, sanctions, and the depreciation of the ruble has had a significant impact on the residents of our country. The fall in income and the possible loss of sources of funds have put a considerable number of Russians in danger of losing their homes, for which the population was unable to pay the mortgage.
The government came to the aid of such sections of society. According to his proposal, the state provided real monetary assistance to those who were unable to pay their mortgage. This state program makes it possible to repay the mortgage at the expense of the state in some part of the debt. Russians can hope to eliminate part of the debt in an amount of no more than 600 thousand rubles. The condition of payment will be the cost of housing more than 8 million rubles.
Birth of a child
One of the main activities of developed countries is financial assistance for large families, that is, social units in which there are three or more children under 18 years of age. The main thing in this matter is to help in the process of obtaining individual housing.
In Russia, for millions of such families, the housing problem is still relevant. To improve the well-being of official families, the government is implementing more than one program. The mortgage may be repaid at the expense of the state upon the birth of a child. For example, when the first and second child are born, it is possible to receive compensation for 18 sq. m.
A separate area is housing assistance for large families. This also includes the liquidation of a mortgage, when the mortgage is repaid at the expense of the state upon the birth of 3 children. To obtain the status of a member of the state cash assistance program for large families, a married couple must meet a clear framework:
- Could present a marriage certificate to confirm the marriage. The state does not help Russians who are in a civil marriage.
- Both husband and wife cannot be older than 35, i.e. predominantly young families are allowed to participate in the program.
- The family must live in housing that actually requires improvements or the purchase of a new apartment.
When applicants meet all the above conditions, they can begin the process of signing an agreement with a financial institution (bank) to provide a mortgage. The loan will be guaranteed state assistance, and large families will be required to receive all kinds of benefits for minor members. With the birth of the third child, the entire mortgage is paid off.
This financial support measure is initiated at the state level, which is why it does not work for banks. For example, some financial institutions do not work with the state budget. Therefore, these systems will not function with mortgage liquidation loans for the birth of a child in 2017.
The mortgage may be repaid at the expense of the state even after the birth of the fourth child.
The method for liquidating a mortgage with the birth of a child is as follows:
- To represent the right to eliminate debt with the advent of a new family member, you need to come to the Pension Fund of the Russian Federation.
- The institution is provided with a list of documents related to the birth of a child, a marriage certificate, a mortgage agreement, a document proving ownership, and a certificate of the remaining debt. You will need to bring copies of these papers, and the originals must also be provided.
- After verification, the allocated money is transferred to pay off the debt, and the mortgage is liquidated.
This method can be used by families who have entered into an agreement under the state program. When it turns out that an agreement was concluded for a different form of loan, it must be re-concluded in order to receive similar benefits.
Decrease in income
To start the process of liquidating a mortgage thanks to government assistance due to a decrease in income, the latter fact must be proven. For example, the reduction in wages - the main source of income for many Russians - should be no less than 30%. The client needs to write a request for restructuring 90 days after the budget reduction.
The state can also help holders of foreign currency loans. When the value of the ruble in relation to world monetary units falls by one third, and income remains at the same level, you can apply for government assistance.
Participants in state programs
Not all categories of Russians can participate in preferential programs. There are several categories of residents of the country who have the right to liquidate their mortgage at the expense of the state:
- young families with a minor son or daughter;
- families with two children;
- families with disabled, seriously ill or disabled citizens;
- families with members under 24 years of age who do not have a source of official income and are supported;
- civil servants;
- workers of the city-forming company;
- war veterans;
- members of various scientific organizations of the Russian Federation, etc.
These Russians need to write an application to participate in the program.
Real estate requirements
There are a number of conditions that facilitate the speedy process of repaying mortgage debt at the expense of the state. Such privileges can be obtained subject to the following conditions:
- Housing obtained through a mortgage is the only property or constitutes no more than 50% of the share in other real estate.
- Price 1 sq. m is less than 60% of the cost of ordinary real estate.
- Legal cleanliness of housing is necessary.
Real estate must meet a minimum area. If a potential participant in the state program lives alone in an apartment, the housing cannot be more than 50 square meters. m. For 2 people, the area cannot exceed 35 sq. m. m for each. When there are three residents, the requirement for the apartment area is no more than 100 square meters. m.
Requirements for the amount of funds received
Certain conditions also apply to borrowers' income. When the amount of funds after transferring the contribution is less than two subsistence minimums, a citizen has the right to apply for liquidation of the mortgage with the help of the state.
A Russian who wishes to receive state assistance must not be bankrupt by court order. You can also participate in the targeted loan program. The delay can only be within 3-4 months.
agreement date
According to the initial version of Resolution No. 373, borrowers who received loans before 2015 could start the process of eliminating mortgage debt with the help of the state. The current documents say nothing about this. It is only indicated that repayment of the mortgage at the expense of the state (validity period from the creation of the agreement to the application for help) is possible only within 12 months.
Repayment process in Sberbank
Similar functions are included in the list of any of the banks. Mortgages from Sberbank are popular because the financial institution offers favorable conditions to borrowers. Here it is possible to repay the mortgage at the expense of the state. Sberbank provides a fairly favorable loan for housing. To receive the compensation indicated by the state program, you need to carry out the following actions:
- Come to Sberbank in person and talk with a specialist, find out about the likelihood of granting benefits, and receive an application form.
- Complete an application and prepare a set of documents.
- Bring the collected documentation to the bank.
Then you need to wait for a decision. If the decision on the application is positive, money is transferred to the program participant’s bank account, which reduces the amount of debt. The borrower is required to sign an agreement with the bank, which will define the terms.
Required documents
To repay a mortgage at the expense of the state, the client is required to provide a number of official papers related to determining the identity, status, family and property status, and participation in various programs. These are a civil passport, marriage certificate, mortgage agreement, certificate of ownership of housing, birth certificates of children. All papers must be certified by a lawyer or the relevant institutions.
The set of documents changes periodically depending on conditions. Additionally, the bank may offer to bring a certificate of disability of the borrower and his close relatives, and so on.
