The law defines the possibility of using maternity capital funds for the purchase of housing. All banks that deal with mortgage lending are required to accept state certificates to pay interest and / or loan body. Read more about how the mortgage is repaid by maternal capital (documents in the FIU, which are necessary for processing and confirming the operation, will also be listed) read below.
Definition
Maternity capital (MSC) is the federal budget funds transferred to the FIU for the implementation of state support measures. As a confirmation of the right to receive funds, participants in the program are issued a state standard certificate. You can get it at the local distance of the Pension Fund of Russia at the place of residence.
One way to quickly purchase a residential property is to use maternity capital to pay off the mortgage. Documents required to complete the operation are transferred to the Pension Fund of Russia, which decides on the use of funds of the MSC.
How to get a certificate?
Before considering how the mortgage is repaid by the parent capital, the documents required to complete the operation will figure out how to obtain an MSC certificate.
Material assistance from the state can be received by a woman whose second or subsequent child was born or adopted. The same category includes fathers who have adopted a second child. Money can also be received by a child without parents upon reaching the age of majority. Mandatory conditions:
- Full-time study.
- Age - up to 23 years.
A certificate can be obtained at the Pension Fund of Russia at the written request of the parent. A copy of the applicantโs passport, birth certificate (adoption) of all children must be attached to the document. The pension fund may require additional documents, in particular, if the applicant is a single father. Within a month, the PRF considers documents and makes a decision on the issuance of a certificate. The notification is sent to the applicant within 5 days. In case of a positive decision, the document will indicate where and when it will be possible to obtain a certificate.
Application
MSCs are indexed annually for rising inflation. Funds can be used in whole or in part in several ways. One of them is the improvement of housing conditions. In this area, funds can be used to purchase (build) premises located on the territory of the Russian Federation. For the same purposes, you can take a loan from a bank, and then arrange for the repayment of the mortgage by maternity capital. Documents required for the operation will be sent further. You can manage your funds after 36 months after the birth or adoption of the second or each subsequent child. A loan can be issued for a mother or father.
Where to begin
The following list of documents for paying off mortgage debt must be submitted to the bank:
- copy of the certificate of MSC.
- passport of a citizen of the Russian Federation.
- application for early repayment of a mortgage (standard form of a bank).
The bank should also order a certificate stating the amount of debt broken down by the bulk of the debt and interest. Here you can get a certificate of ownership of real estate and an apartment purchase agreement. The next stage is the transfer of documents to the Pension Fund.
Mortgage repayment by maternity capital: documents
To repay a loan by state funds, you need to prepare and provide certificates to the FIU. A full list of documents for repaying a mortgage by maternity capital is presented on the website of the local Pension Fund of Russia. Short list:
- The original certificate for state aid.
- A copy of the passport of the holder of the certificate or other document proving the identity of the person. If the application is submitted by the spouse (a), then an additional copy of the second passport and marriage certificate must be provided. If the application is submitted by a proxy, then you must additionally provide a copy of the power of attorney.
- A copy of the mortgage agreement with state registration.
- Documents confirming the possibility of receiving funds from the MSC by the creditor organization:
- for borrowers whose loans are refinanced by AHML, a copy of the notice of change in the ownership of the mortgage;
- for borrowers whose loans are sold to other companies - a copy of the letter from the second owner of the mortgage. Notification of a change in the owner of the mortgage is sent to the borrower after refinancing the loan by mail.
- A copy of the certificate of state registration of ownership of the premises.
- Extract from the house book, personal account.
- The obligation notarized by a notary to register an apartment in a common (with all residents) property, after removal of the encumbrance.
- A certificate from the bank on the size of the debt balance, including interest.
Here are some documents for repayment of a mortgage by maternity capital.
Only cashless
The legislation stipulates that it is possible only in cashless form to repay the mortgage by maternal capital. Documents to the Pension Fund of Russia are provided to obtain permission for a wire transfer of funds. But there are exceptions to this rule. If the family is building a house, then even before starting work, you can get half the amount to a bank account. For the remaining amount, you will have to apply to the Pension Fund of Russia and provide a package of documents for paying off the mortgage with parent capital. At the same time, at least six months should pass between tranches. In addition, you need to prepare documents confirming the cost of the work: contracts with contractors, acts of work.
How are mortgage payments repaid by maternity capital?
Documents for processing an application for disposal of funds are transferred to the territorial office of the Pension Fund. The employee must provide a receipt indicating the number and date of adoption of the document, his full name and position. Within a month, a decision is made on approval or refusal to use the MSC and is sent to the applicant in the form of a notice.
If the documents required for repayment of the mortgage by the parent capital are not compiled correctly, provided in an incomplete set or the amount of funds under the MSC exceeds the balance of the debt, the offset may be refused. In the notification, the Pension Fund of Russia is obliged to indicate a reasoned reason for the refusal. This decision can be appealed in court.
What documents are needed for the bank to repay the mortgage by maternity capital? A written notice from the FIU with permission to use state support. If there is a partial repayment of the loan, the borrower must submit a statement to the bank indicating the chosen method of changing the payment schedule:
- reducing the duration of the contract while maintaining the size of the payment;
- reducing the size of the payment while maintaining the contract period.
The Pension Fund of Russia is obliged to transfer funds within two months from the date of the decision. Maternity capital cannot be used to pay fines and penalties that have arisen as a result of default on loan obligations. That is, prior to the transfer of PFR funds, the borrower must repay the debt in a timely manner. After mutual settlements, a new loan repayment schedule is drawn up.
The first way to pay off debt
At the expense of state aid, you can pay part of the advance, the body of the loan or interest on it. The first option is not available at every lending institution. Previously, banks classified customers who could not independently pay the down payment as insolvent. Today, large financial institutions make concessions and accept MSCs. It should be noted that the conditions for such loans can hardly be called beneficial for borrowers. Such loans provide for higher interest rates with a short loan term.
The second way to pay off debt
A more acceptable option is to repay the loan body at the expense of MSCs, since after the amount of debt decreases, interest is accrued on the balance of the debt. If the borrower plans to repay it ahead of schedule, after making settlements, you can reduce the amount of payment.
The third way to pay off debt
It is beneficial for the bank if only interest on the loan is repaid at the expense of the MSC. He is guaranteed to receive part of the due funds. The same scheme is beneficial to the client, provided that he does not plan to repay the loan ahead of schedule. The amount of the monthly payment is reduced, but slightly.
Features
The certificate for the MSC is issued for an unlimited period. You can get the amount at any time. If the person indicated in the document has died, the second parent, guardian or the child himself can use the amount before he reaches 23 years of age.
You can use state aid at any time. The exception is when the certificate holder intends to use it to pay the down payment. In this case, it will be possible to use it after 36 months after the birth / adoption of the baby. There is one more limitation. In the list of documents for repaying a mortgage by maternity capital, you need to include a certificate from the Pension Fund confirming that previously the state aid funds were not used for any other purposes.
In addition to federal programs, there are also regional programs to improve the demographic situation in the country. For some of them, special conditions are provided for receiving (registering) property into property.
After repayment of the loan, the purchased property must be registered in a joint property with all family members.
Closing MSC
The maternity capital program was launched back in 2007. Even then it was said that the program would not operate indefinitely. After 8 years, the first rumors appeared about the termination of the certificates. The reason for this was the fact that in 2014 the indebtedness of the Russian Penision Fund (through which all payments go) amounted to about 1 trillion. rub. For the same period, 200 million rubles were paid according to certificates of the MSC. No final decision has been made. According to preliminary data, it will be possible to obtain a certificate until December 31, 18, inclusive, and use it in the next 10 years.
Next year, the following changes are considered in the conditions of the program:
- issuance of certificates only to families with a small or medium income level;
- A new direction in the use of funds is considered - the rehabilitation of children with disabilities.