Government assistance in representing many citizens seems like a simple process. But given the scale and prospects, such issues must be worked out so that offenses in this area are excluded. The system of issuing maternity capital is a vivid example of this.
Legalization of maternal capital
Maternity capital is a form of state support for young families. The program has been operating since 2007. At the time of implementation, the authorities intended to stop payments in 2018. However, the conditions have changed, and now young families can count on material support at the birth of children until 2021. The family has the right to manage the subsidy after 3 years from the date of receipt of the certificate.
Who is supposed to?
Target recipients are families that have previously received government subsidies of a different nature. Another important criterion is the Russian citizenship of the recipients. The child in the family should not be the first. The second child can be either born or adopted. The recipient can be both the mother of the child and the father. Men who have adopted a second child are also eligible for maternity capital.
If, for one reason or another, parents lose the right to a child, then maternity capital is not canceled, and the right to receive it passes to the child.
It should be borne in mind that the state financial support to the family relies once. What you can spend maternity capital on is a separate issue. The actual process of obtaining is carried out through the issuance of special certificates. They are issued upon presentation of a civil passport and birth certificate of the child.
Maternity capital refers to the target types of financing. It should be used:
- for the purchase of housing;
- to improve the conditions of existing housing;
- when applying for a mortgage loan.
The difficulty of using maternity capital is that cash cannot be received in hand. In addition, such attempts have been banned at the legislative level. But what about families whose housing problem is not so acute as the need for cash? How to legally cash out maternity capital in this case? Is there such an opportunity?
What is the reason for the ban?
At first glance, it seems illogical that help is relied upon, and it is impossible to cash out maternal capital. However, the ban justifies itself from a different point of view.
In the early days of the program, parents had the opportunity to cash out on request. However, practice has shown that in most families the funds were not used in rational directions. For example, if a father or mother suffers from alcoholism, drug addiction or is unemployed, then the money was wasted. After all, by default, maternity capital relies on dysfunctional families. It turned out as if the state was financing not the interests of the child, but the whims of adults. The state has no other levers of influence on the rational use of funds, except as a ban on misuse.
Is it possible to cash out part of the maternity capital? Later, parents began to ask this question, and such an opportunity appeared. The year 2009 was marked by an erupted economic crisis. Unemployment grew while food prices rose. Then the Duma decided to alleviate the fate of dysfunctional families through the cash issuance of part of the maternity capital. A fixed amount of 12,000 rubles was determined.
Then the cashing of maternity capital continued until 2011. The second stage of the cashing permit took place in 2015. The amount was already much larger - up to 20,000 rubles were supposed to be on hand.
Those families that have not exercised the right of partial cashing can apply to the FIU. If more than 3 years have not passed since the issuance of the certificate, then they can count on a tangible financial investment in the family.
Legal ways to get money
Even in cases prescribed by law, the use of maternity capital is not foreseen by hand. A citizen must prepare documents for solving housing issues in the proper manner and form, submit them together with the application to the FIU and wait for a positive decision.
However, not all banks have the right to work with maternal capital. Financial institutions where you can cash out maternity capital in a legal way are as follows:
- Sberbank
- "Opening".
- "Absolut Bank".
- "Alfa Bank".
- "VTB 24".
- "Revival".
- "Dominant".
- Unicredit.
The most popular are VTB 24 and Sberbank. So, how to legally cash out maternity capital through a bank?
Application for funds during the construction of a house
The state subsidy for the second child in 2018 is 453,000 rubles. Obviously, this amount is not enough to build a full-fledged house with decoration. But cashing out of maternal capital for these purposes can serve as a basic help on the way to owning your own housing. An alternative to traditional brick houses is prefabricated frame houses, the cost of which varies from 300,000 to 500,000 rubles.
In any case, the family’s decision to build a house is important. The construction of a solid house with large areas - this is what you can spend maternity capital without hesitation. It is assumed that the family already owns the land, has a project for the future home and is ready to invest some of its own funds.
An important point is the correct registration of the land. For this, cadastral work should be carried out on the site, a land survey was made and documented.
The family may decide to hire a construction team or build housing on their own. But a contract for the provision of construction services must be concluded. Cashing out of maternity capital requires the provision of these and other documents.
If the family chose not to use the services of the construction team, but intends to complete the construction on their own, then the money will be issued in two stages: the first part after the submission of documents, the second part - at the end of the first stage of construction.
The list of documents that need to be submitted to the FIU should include:
- Title document for the land.
- Copy of the contract with the construction team.
- Permission of local authorities for the construction of housing stock.
- Bank account details where you can cash the maternity capital.
- General passports of the spouses.
- Birth certificates of children.
- Certificate of marriage.
Get a mortgage and use maternity capital
Maternal capital serves as a good base for buying real estate through mortgage lending. It should be remembered that funds are not given out on hand. The process of registration is slightly different from the design of a typical mortgage. The advantage of this method is that there is no need to wait 3 years.
First of all, you should choose a bank that cooperates with the FIU in terms of maternity capital. At the next stage, you need to find an apartment that suits the family in all respects: location, quadrature, cost and other parameters. A mortgage with maternity capital is issued for both primary and secondary housing.
In this case, you can cash out the maternity capital for housing by entering the amount as repayment of the loan funds. Money can be made as a down payment for a mortgage or, if there is already a mortgage, the funds can be used to pay off the remaining amount.
The nuances of the transaction
The funds will be transferred to the bank after the transaction is completed. When the apartment is selected, the documents are checked, the bank approves the transaction and is ready to allocate funds, an agreement is concluded with the buyer. The document, in addition to standard wording, should indicate that the buyer is obliged to apply to the FIU with a request for transfer of maternity capital to the bank within 6 months after the transaction is completed.
This procedure is due to the fact that documents for cashing out maternal capital through a mortgage require a real estate purchase and sale agreement registered in the USRN. Considering the fact that the process of registering banking procedures and registration with government agencies lasts about a month, it is quite possible to meet the deadline in order to provide the bank with a transfer of funds.
At the same time, the interests of the seller will not suffer at all. He does not need to wait for the transfer of MK to the bank. The bank will settle accounts with him.
It is advisable for the buyer to contact the FIU as soon as possible, since before the receipt of funds, the repayment amount is calculated based on the total cost of the borrowed funds. Upon receipt of funds, recalculation is automatically performed.
When buying and building, there is one important condition - housing must be issued to all family members.
Get money to improve housing conditions
Another option for exercising rights to state subsidies is the reconstruction of a house on maternity capital. It is assumed that the family already has its own housing, but needs to improve conditions. But what are the criteria for determining the need for improvement? Lack of repair according to Euro standards, design or another indicator?
The legislation established the norm of living space per person. The minimum figure is 12 square meters. But for the family there are other criteria. So, if two people live in a family, then housing should have at least 42 square meters. In addition, housing should have separate rooms for domestic needs and have windows. If, when calculating for each family member, the coefficient is less than the norm, then such housing is considered to be in need of improvement. Such information should be compiled by the local municipality.
In this case, the reconstruction involves the expansion of living space, improvement of technical properties or a superstructure of the floor, if we are talking about a private house. Cosmetic, major repairs or replacement of plumbing are not included in the reconstruction, respectively, in this case there is no way to use the subsidy.
An application to the FIU can be submitted in advance or upon completion of work. If the family decides to receive maternity capital upon completion of work, then checks, receipts, an agreement with performers and other documents proving the work performed should be kept.
Illegal Ways to Watch Out For
Often you can see an advertisement promising to cash out state subsidies without complying with legal requirements. Moreover, these individuals conduct their activities as legal companies. For their work, they take in advance a certain remuneration from citizens.
There are cases when such organizations, having received maternal capital through corruption, demanded a significant part of the subsidy from certificate holders. If a citizen took this step, then he has no chance of protection before the law, since he himself is the initiator of the violation of the law.
Given these phenomena, in 2013 the Government introduced a punishment for illegally receiving state support. Under the new rules, the illegal cashing of maternity capital is classified as a criminal offense and entails the payment of a large fine or forced involvement in community service.
Conditionally legal ways
How do these companies act, daring to deceive the state system? The scheme is extremely simple. Such methods of cashing out maternal capital involve the use of forged documents and the use of fictitious transactions.
They find property owners whose condition is poor, located in remote areas. But the documents indicate the cost is much higher. To pay off the difference, the buyer must also issue a loan to an illegally operating company. Ready documents are sent to the FIU. A private company accepts the amount of maternity capital. There are many cases when such companies did not give money to citizens, but disappeared. As a result, the citizen was left without money and with debts for property unsuitable for life.
In this case, the citizen is not guaranteed protection of his rights to the lost maternity capital, since he voluntarily subscribes to the offense.
Conclusion
Maternal capital is a rational and targeted assistance aimed exclusively at the interests of the family and growing children. Despite the name, the essence of the subsidy comes down to the fact that it can only be used to solve the pressing problems of the whole family.
When asking questions about workarounds or how much you can cash out from maternal capital, you must always remember that the extradition system is worked out in detail at the state level and not a single loophole will be left without punishment. From this point of view, submission to established rules is highly desirable.
Those citizens who have already encountered offenses in this matter or have witnessed attempts to illegally obtain maternity capital should report this to law enforcement authorities.