Mortgages are popular among many citizens. They allow you to purchase your own property without having a sufficient amount of funds for these purposes. Mortgage loans are provided by many large banks, and the standard requirement is the availability of funds in the amount of 10 to 20% of the value of the selected property. They are used as a down payment for mortgages. Confirm that the borrower has an optimal financial condition. But often the question arises of how to get a mortgage without an initial investment. This is possible using different methods.
Down payment concept
It is represented by some of the value of the property selected for the purchase. Must be paid by citizens planning to buy an apartment or house at the expense of borrowed funds. It confirms the availability of money from a potential borrower.
Almost all banks require citizens to have such an amount, because if it is not available, then a loan may be denied. The size of the down payment depends on the policy of the banking institution itself, but is standardly set in the range from 10 to 25 percent of the cost of housing. The larger the amount, the more favorable conditions are offered by the bank.
Pros and cons of mortgages without down payment
You can arrange such a home loan even without your own investments. To do this, you have to use special offers of banks or preferential state programs. Making a mortgage without a down payment is quite difficult, but the process has many advantages:
- a citizen does not need to have his own savings for the acquisition of housing;
- Available funds can be used to repair purchased property.
But the disadvantages of this decision are much greater. The fact is that the possibility of obtaining such a mortgage is offered by a limited number of banks. A high interest rate is set. It is difficult to get such a loan, as you will have to prepare a lot of documents confirming the good financial condition of the potential borrower.
In what ways is it made out?
If a citizen does not have funds that could be used to purchase a home and apply for a loan, then he will have to use different methods to get a loan without his investments. How to get a mortgage without a deposit? Different options can be used for this:
- use of own property in the form of a pledge;
- registration of a standard consumer loan;
- borrowing the required amount from relatives or friends;
- use of pawnshop services;
- the use of mothercapital;
- use of installments from the developer;
- registration of various preferential programs designed for simplified mortgage lending;
- application of shares held by banks;
- loan processing in institutions offering the opportunity to buy housing without their own funds.
Each option has its own nuances and features, which should be carefully understood.
Use of your property as collateral
If the potential borrower does not have money that could be used as a first installment, then if there is a residential object drawn up for it, the latter can be transferred against the bank. Under such conditions, the encumbrance is imposed on the purchased property and on the apartment already owned by the borrower.
Such conditions may facilitate approval by the bank. How to get a mortgage without down payment by this method? To do this, the existing property itself and the borrower must fit the requirements of the bank:
- a citizen must be officially employed and receive a good income;
- his credit history must be perfect;
- the proposed property must be registered in its sole property;
- it is desirable that the encumbrance is not imposed on a single residential property owned by a citizen;
- usually a third party guarantee is additionally required.
Both properties are subject to an encumbrance registered with the Rosreestr. Even under such conditions, a high interest rate will be set, so overpayments will be significant.
Making a loan at a pawnshop
If a citizen has a registered property, then you can use it to get a loan at a pawnshop. Under such conditions, two loans are issued per person, which significantly increases the credit load. How to get a mortgage in this way? For this, the nuances are taken into account:
- the existing real estate is encumbered with a pawnshop, and the purchased property is represented by a bank pledge;
- significant amounts are offered by pawnshops, depending on the estimated value of the apartment being transferred;
- will have to prepare for substantial payments.
Even if the potential borrower will have a significant amount of funds sent to the bank in the form of an initial payment, many stringent conditions are imposed on him.
Consumer loan processing
Many banks require a small amount from the borrower in the form of a first investment, which is only 10% of the value of the property. Under such conditions, this amount can be obtained when applying for a consumer loan. But the nuances are taken into account:
- the banks issuing the mortgage will carefully check the borrower, so if they find out that they have an outstanding loan, they may be refused a mortgage;
- the borrower will have to repay two loans at once, so the monthly payments will be high;
- Additionally, you need to consider the cost of buying insurance for an apartment.
A consumer loan and a mortgage should be issued at different banks.
Use of mothercapital
If citizens who want to take a mortgage loan have an already issued certificate for capital, then they can apply for a mortgage at the bank using this benefit. State funds can be used as an initial contribution. But for this, the nuances are taken into account:
- on a mortgage, the state allows you to use matcapital immediately after the birth of a child, so you do not need to wait three years;
- the size of the capital exceeds 450 thousand rubles, so it is enough to cover the down payment;
- To use the certificate, it is required that the selected apartment meets the requirements of the Pension Fund, therefore it must be of high quality, compliant with the standards, with all utilities and infrastructure developed;
- Real estate is executed not only for borrowers, but also for their children;
- most large banks work with matcapital, so there will be no difficulties with where to get a mortgage.
Such a decision is considered optimal for each borrower.
Obtaining installment or loan from the developer
If you plan to buy an apartment in a new building, then you can take advantage of the unique offers of developers. They seek to sell real estate as quickly as possible, so they often offer their own installments or loans. Often, under such conditions, interest is not required.
Use of government programs
The state regularly offers various programs that allow you to draw up a soft loan for the purchase of housing. How to get a mortgage on preferential terms? To do this, borrowers must meet different requirements. As a standard, without an initial contribution, funds can be issued by banks for the purchase of housing under the programs:
- borrower support;
- lending to military personnel;
- participation in the refinancing program.
It is most advisable to apply for a mortgage in Sberbank on the basis of preferential terms, since this institution always cooperates with the state.
Borrowing funds
If relatives or friends have a free amount, then you can ask for a loan. It is necessary to discuss the terms of the return in advance, as well as to draw up a receipt.
Contacting banks offering a mortgage without a deposit
There are several banks that offer unique programs. On them you can apply for a mortgage for housing without the need to provide your own funds in the form of an initial investment. These banks include:
- Sberbank offers a program without down payment only within the framework of refinancing, and under this program a rate of 10.9% is set.
- Binbank provides mortgages secured by housing at a rate of 10.5% for up to 20 million rubles and for up to 30 years.
- Interprogressbank provides loans under the Udachny program, which does not require an initial payment, but the rate is 18%, and a maximum of 3 million rubles is issued for up to 5 years.
- Union Bank grants mortgage loans at a rate of 11.5% for a maximum of 25 years.
Additionally, often in large banks different promotions are held, which may include even the lack of the need to invest their money in the purchase of housing. Therefore, it is recommended to regularly monitor different offers and programs.
The process of obtaining a mortgage loan
If funds are found for the initial investment, or the various methods mentioned above are used, it is important to figure out how to apply for a mortgage for an apartment. The process is carried out in several stages:
- a bank is selected that offers the optimal mortgage lending program;
- an application is being formed;
- documents are prepared confirming that the borrower meets the conditions of the chosen institution, and this usually includes: passport, 2-NDFL certificate from the main place of work, other documents confirming family income, marriage certificate, birth certificate or passport of children, extract from the house book, bank statements, and also the bank, if necessary, may require other documentation;
- a decision is made by the bank;
- if it is positive, then the citizen will find out what maximum amount of funds can be provided to him on a mortgage loan;
- on the basis of the available limit, the optimal property for the acquisition is sought, which should meet the requirements of the selected bank;
- the seller of the selected object takes the necessary documents for real estate, which include: extract from the USRN, technical plan and passport, extract from the home book, certificate from the personal account, copies of passports of all co-owners, a certificate containing information about all registered persons;
- documentation is transferred to the bank, after which the employees of the institution carry out a check of the real estate and the seller to make sure that the transaction is legal;
- if there are no problems, then the borrower makes an initial payment, if it is required by the selected program, and the capital can also be used;
- money for real estate is transferred to the seller through a bank cell or by wire transfer;
- an apartment is being issued in Rosreestr with a mandatory fixation of the burden, since the purchased apartment is surely pledged to the bank;
- real estate insurance is purchased, and many banks require borrowers to insure their life and health.
If you figure out how to apply for a mortgage at Sberbank or another banking institution, the process will not seem too complicated. Moreover, the borrower may not have its own funds that could be used as an initial investment. It is only important to choose the best property. If it is absolutely necessary to purchase an apartment in a new building, then the DDU is initially concluded with the developer, and after the property is put into operation, the ownership of the object is registered.
Conclusion
Thus, there are many ways to arrange a mortgage without using your own funds. To do this, you can take advantage of preferential state programs, matkapital or even apply to banks that offer this option of lending, in which you do not need to invest money from the borrower. In the latter case, you will have to face high interest rates and overpayments.
Even in the absence of funds, you can become the owner of your own property. Until the loan term expires, a burden on the bank will be imposed on it.