How to invest maternity capital in a mortgage? The question, as they say, is relevant, since not everyone knows the features of the procedure, therefore they often receive refusals. If you read our article, you can easily use capital. Let's start with the main thing. What is family capital?
The concept
Before you invest maternity capital in a mortgage, you need to at least generally imagine what kind of procedure it is.
For some time in our country, maternity capital has been paid for the birth of a second or next child. Only people who have given birth or adopt a child after 2007 can count on a subsidy. What is maternity capital? In fact, this is material assistance from the state, which can be spent only on certain goals. It is important to understand that only parents or guardians of a child can dispose of it.
Sometimes you can hear that capital is issued after each birth, but this is not so. It is paid once in life, regardless of how many children have been born or adopted.
If the mother cannot receive the capital, then this right passes to the father. This applies to situations where, for example, a woman dies or is deprived of parental rights.
In cases where the parents cannot receive a subsidy or have been deprived of this right, the child receives the money himself, even if he is a minor.
What can I spend on
How to invest maternity capital in a mortgage and is it legal? Yes, it is quite. The government has set goals for which subsidies are allowed to be spent. Among them:
- Improving housing conditions. It is allowed not only to buy housing for the capital, but also to use it as a down payment for a mortgage or as a partial repayment of a housing loan.
- Accumulation of mother's pension. The entire amount can be put on the woman’s retirement account. Although this is provided, but few decide to dispose of maternity capital in this way, because it is not known what will happen tomorrow with finances and legislation.
- Child education. This refers to the education of both older children and younger ones. Money for education is also spent by a small number of mothers.
- The purchase of a car, if there is a family need for this. The use of maternity capital was thus allowed relatively recently. It is not known how many successful acquisitions have already been made, so while people are wary of the possibility of buying a car.
- Adaptation of a child with disabilities in society. This includes spending on services or facilities that children with physical or mental disabilities cannot do without.
As you can see, there are quite a few ways to spend maternity capital, the main thing is not to forget that criminal use is prescribed for misuse.
If it is more or less clear with the intended use, the dilemma regarding how to invest maternity capital in a mortgage raises many questions.
An initial fee
More recently, the Government has expanded the use of subsidies. Now you can take a mortgage with maternity capital as a down payment. This will help families who can not raise money for the first payment, they do not have to wait for a three-year-old child.
But not everything is as simple as it seems. The amendments were adopted in order to increase the number of mortgages, but something went wrong and the expected growth did not happen. The reason was that people encountered some difficulties. The fact is that the representatives of the Pension Fund have not yet determined where in this case it is necessary to transfer the money - directly to the seller or still to the bank. If you transfer the money to the lender, then it is not a mortgage with maternity capital as an initial payment, but a full payment for the loan. Logically, you need to transfer money to the seller, but the Pension Fund is opposed to transferring money to individuals before the child is three years old.
It turns out that an ill-conceived legislative framework only complicates the registration of a mortgage with a down payment - maternity capital. Several times the problem was discussed at a round table, but no major changes were made.
Only some banks are willing to credit maternity capital as a down payment. But in order for the transaction to take place, certain conditions must be met:
- The initial payment cannot be more than the amount of capital.
- Housing should cost more than the amount of the loan.
Required documents
Before you pay off the mortgage with parent capital or use it as a down payment, you need to know what documents will be needed for this.
A set of papers also depends on what kind of housing is purchased, the differences in the documents are insignificant.
So, in order for the loan to be issued, it is necessary to collect the documents:
- Application for the transfer of capital. Be sure to indicate that the money will be used to improve housing conditions.
- Passport of a person applying to the PF. It should have a registration mark.
- In the case of the transfer of documents to the Pension Fund by an authorized person, the latter must have a power of attorney and a passport with him.
- If the spouse draws up the mortgage, then he must provide a certificate of marriage, a passport with a mark on registration.
- Copy of the mortgage agreement that was concluded with the bank. You can also provide a target loan agreement with a consumer credit cooperative.
- Copy of a mortgage agreement that has already passed state registration.
- A written commitment to allocate shares in an apartment or house to all family members. This must be done no later than six months after the Pension Fund transfers the money, the housing is put into operation or the encumbrance is removed. By the way, the obligation must be notarized.
Additional papers
Before you pay off the mortgage with maternity capital, you need to properly collect the documents. If you are already finished housing, you must have with you a copy of the contract of sale and a copy of the certificate of ownership.
When a mortgage in Sberbank or another bank is taken under shared construction, it is necessary to provide an agreement on shared construction. The document must have a note on re-registration. Still need a bank statement with the amount paid as payment under the contract.
A mortgage in Sberbank can be issued for the construction of their own housing. Then it will be pledged, and the Pension Fund will need to provide a copy of the construction contract and a copy of the building permit.
Loan repayment
The matter is not limited to the first contribution of maternity capital to a mortgage; funds can be used to repay interest on a loan or its body. To do this, the housing must meet the criteria:
- A person can buy real estate only in Russia.
- The apartment must be in the status of a dwelling.
- The area of the apartment should be such that each member of the family has enough space.
But in order to conclude a mortgage agreement using maternity capital, it is not enough to comply with these three conditions. Banks put forward their own requirements, which are worth considering in more detail.
Bank Criteria
The key to the transaction - compliance with banking requirements. This includes:
- Good credit history of the borrower.
- Work experience of at least six months in one place.
- Stable family income. This must be confirmed with the help of documents.
An important point is that maternity capital on a mortgage account can only be paid if the housing is registered for all family members. Minor children must also receive a share.
In addition to the requirements for the borrower, there are criteria for housing. They should be considered in more detail.
What should be the housing
Sometimes another question arises regarding the investment of maternal capital in a mortgage: what documents must be provided if the housing does not meet the standards established by the legislative level? The answer is simple - none: the house (apartment) must meet the specified parameters.
So, the law prohibits buying using maternity capital:
- The deterioration of the building is more than 50%.
- Damaged or dilapidated buildings.
- Summer cottages. It is worth explaining that some cottage type houses do not have all the conditions for a comfortable stay. The lack of a bathroom or electricity will be sufficient reason for the failure of the Pension Fund.
What to contact with PF
How to use maternity capital for a mortgage - it is already clear, but what to do after all the papers in the bank are completed? You need to go to the Pension Fund and declare your desire to use capital. In this case, you must provide a list of documents:
- Maternal certificate (both original and copy).
- Certificate confirming family income.
- If the maternity capital has already been partially spent, then a statement of the balance is needed.
- Passport with a registration mark.
- If a mortgage is taken with co-borrowers or guarantors, then their data and documents are also needed.
- Real estate documents.
In addition, the PF will require a birth certificate of children and a copy of the mortgage agreement if the loan has already been taken.
In order for Fund employees to transfer funds, you need to take care of a bank account. If he is, then his details are needed, and in case of absence, it will be necessary to open an account with the bank in which the loan was taken. Without an open account, you cannot receive money, because maternity capital cannot be cashed.
Military mortgage
Can maternal capital be used for military mortgages? Of course, yes, but it is important to remember the features of such a procedure. If the military is buying housing and a mortgage, then he can only make out an apartment for himself. It seems to be contrary to the requirements of the Pension Fund, but in this case an exception applies. When an apartment is bought on a mortgage and people want to use capital as well, then in this case the living space is registered for all family members. This is done as follows:
- The military draws up a mortgage on himself, respectively, the apartment is completely owned by the borrower.
- Then the documents are submitted to the Pension Fund along with the receipt. It should indicate a commitment to re-register an apartment for all family members over time.
Some nuances
How best to invest maternity capital in a mortgage - everyone decides. The main thing is to remember that the legislation clearly regulated where these funds can be spent. Very often people do not know how to properly manage the subsidy, and they are very surprised when they are denied the transfer of money. To prevent this from happening, we immediately explain some differences in situations that are similar at first glance.
- If it was not a mortgage loan that was issued, but a consumer loan or any other, then you won’t be able to use the subsidy. Only a mark in the loan agreement that it is targeted allows you to manage the money.
- You can not spend capital on housing repairs, but you can spend money on reconstruction. That is, you can not change the furniture in the apartment, but you can move one of the walls.
- If you decide to build a house, then at the expense of capital you can only buy materials, but construction work cannot be paid for them.
How to invest regional maternity capital in a mortgage? According to the above scheme, unless, of course, the procedure is refused. But what could be the reason for the refusal?
Why refused
Sometimes it happens that the use of maternity capital is denied. This can be done by both a banking organization and the Pension Fund. As a rule, banks practically do not interfere with the procedure, because it makes no sense to refuse state money. For the lender, only advantages are hidden in obtaining capital, such as an increase in capital turnover, a decrease in credit risks and the formation of a reputation. Therefore, it is highly likely that the bank will be on the side of the borrower, unless it has serious inconsistencies.
As for the Pension Fund, problems may arise here. The government obliged him to control the spending of public funds. For this reason, at the slightest doubt, the Foundation refuses people. Documents are considered very carefully, and any doubts that arise are not interpreted in favor of the applicant. But not everything is so sad, there are reasons that are approved at the legislative level. Among them:
- An error was detected in the prepared documents. The same goes for the application for maternity capital.
- Incomplete package of documents.
- Situations when parents are deprived of parental rights.
- Guardianship authorities restricted the applicant's rights to dispose of capital.
- The applicant committed unlawful acts against his own child.
All reasons can be divided into two groups, where the first is a change in the circumstances of the case, and the second is errors in the implementation of the application submission procedure.
How to act
In different situations, you can act in different ways. When documents are returned due to a violation of the regulations, then do not argue with employees. They review a lot of applications every day and it is quite possible that they are right. Try to fix all the flaws, and not to swing your rights. In the end, it’s better to save your nerves, money and time.
If the refusal occurred due to changed circumstances, then a lot depends on who is right. You can fight for your own rights, for example, sue to cancel the decision of the guardianship authorities or re-recognize parental rights.
If the truth is on your side, then defend your rights in all possible ways. An excellent option would be to appeal the decision to higher instances of the PF, litigation, attracting public attention. In this case, you can influence the employees and get the necessary money. It is not necessary to act independently, it is much more convenient to contact an experienced lawyer.
Conclusion
As you can see, in order to use maternity capital in a mortgage, you need to go through many obstacles and at the same time arrange everything correctly. It is understandable, because the state does not want to waste its money. Alas, in our country people are trying by all possible means to hold the Government. Maybe for this reason the Pension Fund is too categorical.
But you will not run into problems if everything is arranged correctly and on time. In this case, the employees of the Pension Fund will accept your application and will not be able to refuse.
You should not try to deceive the state, because sooner or later all schemes for cashing out funds are opened, and violators are punished. Better to use the funds honestly than to play games with the law.
In any case, only friendly communication with PF employees will bring the desired result. Because in many respects it depends on them how much time you spend on paperwork and how quickly you get maternity capital.
Do everything right, in accordance with the letter of the law, then you do not have to sue or prove your rights in any other way. Good luck in the design!