Of all areas of use of maternity capital funds (MSC) improvement of living conditions- one of the most popular. Using government support funds, you can buy or build housing, pay off a home loan, or use certificate funds to pay a down payment on a mortgage.
It is possible to spend MSC on improving living conditions only after the child turns 3 years old. However, you can use state support funds to pay off financial obligations to the bank immediately after the birth or adoption of a child.
After registration of ownership of housing acquired using maternal capital funds, the spouses must allocate shares for yourself and your children. Without fulfilling this requirement, the property cannot be sold in the future, and the actions of the certificate holder will be regarded as fraudulent.
What is improvement of living conditions under a maternal capital certificate?
State support funds for families can be used to pay for any expenses that do not contradict the law. real estate acquisition transactions. The owner of the certificate has the right to use funds for:
The property must be located on the territory of the Russian Federation, and also comply with technical and sanitary standards. WITH March 2019 The pension fund is obliged check the property purchased using MSC funds, for suitability of residence in him. The Pension Fund of the Russian Federation will not allow you to send it if it is located in a building that is subject to demolition or is recognized as unsafe (clause 1.3 of Article 8 of Federal Law No. 256 of December 29, 2006).
It is possible to spend MSC funds on improving housing conditions only after the child, whose birth in the family has created the right to receive state support, turns three years old. An exception is that you can use maternity capital only to pay the down payment on a loan (including a mortgage) or use funds to repay an existing housing loan (loan) and interest on it.
Purchasing housing (apartment or house) with maternity capital
You can buy housing on the primary or secondary real estate market. Moreover, if only own funds, MSC can be disposed of after the child turns three years old from the moment of birth (adoption).
If there are enough maternity capital funds to purchase, a contract of sale. When state support funds are insufficient, the certificate owner uses his own funds to pay the deposit to the seller, the remaining cost is repaid with MSK funds. Until the entire amount under the contract is paid, the housing remains pledged to the seller.
To buy housing, the certificate holder must provide to the Pension Fund:
- Passport to confirm identity and place of residence.
- A copy of the purchase and sale agreement.
- A document confirming the amount of the unpaid balance.
The Pension Fund verifies documents within 1 month from the moment of registration of the application. More money is allocated for the transfer of funds 10 working days.
Purchasing an apartment under a shared participation agreement
You can also use maternity capital to buy a home with participation in shared construction. This method is quite popular, since often the cost per square meter when concluding an equity participation agreement (DPA) is significantly lower than the cost in an already built apartment building.
The owner of the certificate or his spouse can use MSC funds to pay off obligations under the DDU if the following conditions are met:
- the charter of the construction organization provides for the possibility of using maternal capital funds;
- construction site is ready at least 70%.
The parties to the transaction under the DDU are Building company(developer) and investor. The buyer transfers money to a specially created bank account, and the developer, in turn, undertakes to transfer the apartment to the investor after completing the construction of the house and putting it into operation.
To conclude this transaction, the Pension Fund must provide:
- A copy of the DDU.
- A document confirming the transfer of funds to pay the contract price.
- Certificate about the amount of the balance under the contract.
Maternity capital for a down payment on a mortgage
WITH May 2015 Family capital funds can be used to purchase an apartment or build housing. After the bank or other credit organization approves the issuance of a mortgage and the loan agreement is signed, the owner of the certificate must submit to the Pension Fund.
An initial fee cannot be less than 10% from the assessed value of housing. Often, additional funds are required to pay for it. The size of the down payment depends on how the borrower confirms his solvency.
Housing can be purchased on the primary or secondary real estate market. You can use MSK funds to pay the down payment immediately after the birth of your second child.
Along with the application for disposal of state support funds, the certificate holder must additionally provide to the Pension Fund:
- a copy of the credit agreement (or loan) for the purchase of housing;
- registered mortgage agreement.
Repayment of a mortgage loan (loan) with capital
Maternity capital can be used for payments and interest on it. In this case, it does not matter whether the loan obligation arose before or after the birth (adoption) of the child, after the appearance of which the right to receive state support measures arose. MSC funds are allowed to be used to repay several housing loans at once.
To use maternity capital to repay a loan, a number of conditions must be met:
- The loan or loan must be targeted.
- An agreement concluded with a banking or credit organization provides possibility of early repayment.
- Housing for the purchase of which a financial obligation has been issued, suitable for living.
- The organization in which the credit (loan) was issued is:
- bank;
- credit consumer or agricultural cooperative (CPC);
- JSC "DOM.RF".
- If the loan was used to purchase a house with a plot of land, the agreement must indicate exactly what amount was spent for the purchase of housing.
It is not allowed to send MSC to pay off fines and sanctions resulting from the borrower’s failure to fulfill its obligations to the bank. If the Pension Fund approves the transfer of funds, the certificate holder may choose to reduce the amount of mortgage payments or shorten the payment period.
Before submitting an application to the Pension Fund of the Russian Federation, the owner of the certificate must obtain from a bank or other organization providing a loan certificate of the amount of debt and interest on it. State support funds are credited to the Pension Fund if the application is approved within 1 month and 10 working days from the moment of registration of the application.
If the MSC funds were sufficient to partially repay the loan, the borrower will receive a new payment schedule. You can get rid of the loan completely if you have enough money to pay off the debt in full.
Construction and reconstruction of a house on a plot for individual housing construction
Maternity capital funds can be used for existing housing (Article 10 of Federal Law No. 256). It can only be built with MSC funds individual housing construction project(IZHS), that is, a detached house, up to 3 floors high, in which only one family will live.
The house must meet the following requirements:
- it must have a foundation and load-bearing walls;
- it must be located in a residential area;
- residential premises must be equipped with engineering systems;
- No destruction or damage is allowed.
From January 1, 2019, the owner of the certificate has the right to use maternal capital funds for the construction of a house at the summer cottage. To transfer MSC for the construction of residential premises, the following conditions must be met:
- the applicants have a construction permit from local authorities;
- the owner of the certificate or his spouse has registered ownership of the land plot on which construction will be carried out;
- The constructed housing must be registered as common shared ownership.
The land must belong to one of the spouses on the basis of:
- Ownership.
- Free use or rental.
- Lifelong inheritable ownership.
- Indefinite use.
A prerequisite for directing MSC funds for the reconstruction of a house is increase in square footage of housing by at least one accounting standard. Such work includes:
- addition of an additional floor;
- construction of a residential extension to the house;
- Conversion of the attic space into an attic.
It is impossible to direct MSC to other types of repair work that do not lead to an increase in housing area. Cosmetic and major repair work is also prohibited.
Recipients of state support can use maternity capital for the construction of a residential building two ways:
- Hire a contractor (construction) organization.
- Carry out construction on your own.
If the family decides to carry out construction work on their own, then the transfer of money from maternity capital is carried out in two stages:
- the first part of the funds is provided to the applicant in the amount of 50% from the amount of the certificate;
- in 6 months After transferring funds, the owner of the certificate has the right to apply for the balance, and he needs to confirm the fact of construction work.
If the construction work will be performed by a contractor, the owner of the certificate or his spouse must submit to the Pension Fund along with an application for the disposal of the MSK copy of the construction contract.
Allocation of shares to children when using maternity capital
After registering ownership of the home, the spouses must allocate shares to the children in accordance with the previously executed obligation within six months.
How social support appears in 2007. It is allocated to parents if they have a second or subsequent child, or if they adopt two children. In general, the main thing is to have more than one child. At the same time, many people have a question about how to use maternity capital to improve their living conditions.
Despite the name, maternity capital can be issued to several categories of persons:
- A female Russian citizen with two or more children, the second of whom must have been born after 2006.
- A father who single-handedly adopted two or more children. Maternity capital is allocated to him on the condition that the second child was adopted after 2006.
- A minor or full-time student under 23 years of age upon termination of state support for the mother and father.
- The father (adoptive parent) of the children, if the mother has stopped paying benefits.
Maternity capital is in many cases used to improve the old or buy a new one. There are several subtleties that must be taken into account in order to use maternal or, as it is often called, family capital, or abbreviated MSC, firstly, within the framework of the law, and secondly, with benefit for you and your loved ones.
For 2018, the MSK is 453,026 rubles - this amount does not cover the purchase or reconstruction of real estate in full, but is a useful help. When using MSC, there are several restrictions established in Government Decree No. 862.
Firstly, it is assumed that the property is located in Russia and not abroad.
Secondly, funds are presented in the form of a certificate and are transferred only in non-cash form. Any attempts to cash them are criminally punishable.
Thirdly, with maternity capital funds you can only pay for the cost of living space. That is, if you buy a plot of land on which a house stands, money for the plot must be paid from other sources.
Fourthly, the use of the certificate becomes possible after the child turns three years old. But the issue with housing is an exception - you can use the funds upon receipt of them.
You can improve your living conditions in the following ways:
- Buy a house, apartment, room under a purchase and sale agreement (abbreviated as DCP).
- Build a house (by yourself or with the participation of a contractor) or request reimbursement of construction costs if the house was built after 2006.
- Reconstruct the house, increasing the living space.
- Close your mortgage or construction loan payments.
- Make an entrance fee to the housing cooperative.
- Pay for the rights to share participation in construction.
Buying an apartment using DCP
Using maternity capital when buying an apartment using DCT
If an apartment is purchased using MSK, changes are made to the standard DCT:
- In addition to the seller and buyer, a third party is indicated - the Pension Fund, which transfers money to the seller.
- Data that you contributed your own funds before the DCT was concluded.
- That the remaining amount will be covered by maternity capital.
- The fact that ownership will pass to the buyer after he pays the amount specified in the contract.
The transaction does not go through immediately, but with a delay, since the PF transfers the money within two months. The transaction can take place in two ways. In the first case, MSC funds cover the cost in full, in the second - only part of this cost, and the rest is contributed by the buyer himself.
In the second case, the transaction takes place in two stages:
- The amount paid by the buyer is registered in Rosreestr as a deposit.
- The pension fund transfers the funds, the pledge and encumbrance are removed, and ownership passes to the buyer.
Mortgage under MSK
MSK can serve as an additional guarantee for the bank if you are trying to apply for housing. But, despite this, at the moment there is a problem with using maternity capital for this purpose: this can be done in a small number of banks, such as Sberbank, VTB or Delta Bank.
When reviewing your application, the bank will look at the following points:
- Credit history must be good.
- You must have a stable income and a permanent job.
- The housing itself must be registered as shared ownership for all family members, including children.
- You must have a certificate and a certificate from the Pension Fund in your hands, which will confirm that you have a large balance in your account.
MSK can be used to pay off mortgage debt. This is done in two ways. You can reduce the amount of monthly loan payments, leaving the payment term the same, or vice versa - reduce the term and leave payments at the same level.
The procedure for raising family capital for mortgage payments includes several stages.
- First, you need to contact the bank and inform them that you are going to use MSC for mortgage payments.
- Submit the necessary documents with the application to the Pension Fund.
- Wait for the Pension Fund to check the documents. If they decide that your application can be accepted, money is transferred to your account.
- After this, you must submit an application to the bank for repayment (partial or full) of the loan using MSK. If you pay off the debt partially, you will be given a new payment schedule.
The advantage of a mortgage under the MSK is that with its help, unlike a purchase using a regular monetary policy, you can make a down payment, which is often lower than the amount of maternity capital, cover interest or debt on the mortgage, and also pay off the mortgage that was taken before receiving the certificate or before 2007.
Buying a private house or cottage
Matkapital when buying a private house or cottage
Federal Law No. 256 states that you can purchase a residential building or part of it on MSK, if it is an independent residential premises.
Buying without using a mortgage becomes possible only after the child turns 3 years old. The transaction is concluded under an agreement that is almost in all respects similar to a standard monetary policy:
- The buyer alienates ownership rights in favor of the buyer.
- The buyer himself may be the owner of the certificate, or the owner of the certificate, his spouse and his children.
- For payment, you can use either exclusively family capital or family capital with an additional payment.
When choosing, proceed from the fact that it must meet the following standards:
- This must be a residential building or an independent part of it, built and equipped as a residential building.
- The house must meet sanitary and technical requirements, that is, it must be supplied with water supply, sewerage, gas, heating and electric lighting. Exceptions are possible if the house is located in an area where there are no centralized utility networks.
Construction and reconstruction of a house
For this purpose, the use of MSCs is possible in several ways. Firstly, to spend it on a house under construction (the conditions differ depending on whether you are building it yourself or with the participation of a contractor), and secondly, to compensate for the costs of an already built house, if it was not in use before 2007.
If the house is being built with the participation of a contractor, you will have to present to the Pension Fund, in addition to documents of ownership, with the contractor, after which the required amount will be transferred to the account of the construction company.
If you are building a house on your own, the funds are transferred in two stages.
Before construction starts, you can receive ½ of the maternity capital. To do this you must provide:
- A certificate of ownership of a land plot or a document that confirms your right to use the plot: free use, rent, etc. If we are talking about reconstruction, you will need a certificate of ownership.
- Permission to carry out construction or reconstruction work.
- A certificate from the bank confirming that the owner of the certificate has an account.
The next part of the amount will be transferred six months after you confirm the fact that work on the construction or reconstruction of a house is being carried out on the site.
If the house has already been built and you are counting on compensation, provide the Pension Fund with detailed information about the costs of the work.
Reconstruction means an increase in living space by converting non-residential premises into residential ones, through extensions or superstructures. For reconstruction, it is not the moment when the property came into being that is important, but the moment when the repair work was carried out - it must be after 2006.
If we are talking about construction, then you must have ownership rights starting from 2007 and not earlier.
How to apply
How to make a purchase using matkapital
You need to either personally or with the help of a legal representative contact the Pension Fund with a package of necessary items and write an application for an order from MSC to improve your living conditions. Moreover, it is possible to use both the full amount and part of it.
The procedure for reviewing your application is as follows. After submitting the application, the Pension Fund considers it within one month. If the application is approved, the money will be transferred to your credit account no later than 2 months after submitting the application.
The application can be withdrawn at your request within these two months if the money has not arrived in your account by this time. In order to revoke it, you need to write another application to cancel the first one.
When submitting an application, you must provide a notarized commitment to allocate shares to all children in the new home. The obligation is formalized in accordance with Federal Law No. 256. Registration and certification of the obligation costs from 1,500 to 2,000 rubles, but this amount will have to be paid - otherwise, your application will not be approved by the Pension Fund.
Both spouses must be present during certification. Shares for children must be allocated immediately at the time of the transaction. If you have not done this, you will need to allocate shares within a six-month period after registering ownership of the property.
What documents are required
The package of documents is divided into general, necessary regardless of how you intend to improve your living conditions, and also into special ones, for different methods. The overall package includes:
- statement by the certificate holder to dispose of either part of the money or all of the money;
- certificate or its duplicate;
- passport and registration;
- compulsory medical insurance certificate;
- Marriage certificate.
If you are purchasing residential premises using a regular contract, the following documents are required:
- Photocopy of the DCP.
- A photocopy of the state registration certificate of ownership of residential premises acquired with the help of family capital. If the contract provides for payment by installments, you must submit a certificate indicating the amount of the unpaid amount.
During the construction or reconstruction of housing.
To receive the first part of the family capital, you need a copy of a document confirming that the certificate holder or his spouse has ownership rights to the land. Documents confirming the right of perpetual use, inheritance, lease or gratuitous fixed-term use can also be used.
A package of documents for improving living conditions using maternal capital
Other documents: a copy of the building permit, confirmation of the owner’s bank account and details. If we are talking about reconstruction, then you must provide a certificate of state registration of ownership rights to the reconstructed housing.
When receiving the second part of the amount, you must provide, firstly, confirmation that construction or reconstruction work is being carried out, and secondly, duplicate bank account information.
To receive compensation for housing construction costs, the same package of documents is submitted, except for a building permit.
To pay a down payment on a mortgage:
- a copy of the loan agreement for the purchase or construction of housing;
- a copy of the mortgage agreement.
The use of maternity capital to improve housing conditions is limited by a number of factors: the amount of capital, the scope and methods of its use. However, it is useful. Keep a few things in mind. Firstly, do not try to cash out MSC - this is fraught with criminal liability. Secondly, MSC is provided only once - either for the second or for one of the following children. Thirdly, in many areas, the use of MSCs is possible only after the child is 3 years old. Improving living conditions is an exception: for this purpose you can use MSC immediately. There are several ways to use it: to buy an apartment, to pay off a mortgage loan, to build or reconstruct a private house.
Instructions for using maternity capital when buying a home in our next video:
Feb 17, 2018 Content manager
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Can be used for the purchase (construction) of residential premises. Including on:
1. Acquisition of residential premises or an individual object of individual housing construction, in other words, your own home;
2. Construction of an individual housing construction project with the involvement of a construction organization;
3. Construction or reconstruction of an individual housing construction project without the involvement of a contractor, that is, on one’s own;
4. Compensation for the costs of construction or reconstruction of an individual housing construction project;
5. Payment of the down payment when receiving a credit or loan, including a mortgage, for the purchase or construction of housing;
6. Repayment of the principal debt and payment of interest on loans or borrowings, including mortgages, for the purchase or construction of housing (by a credit organization, a consumer credit cooperative, or another organization providing a loan under a loan agreement, the fulfillment of the obligation under which is secured by a mortgage);
7. Payment for participation in shared construction;
8. Payment of the entrance fee as a participant in housing, housing construction, and housing savings cooperatives.
The main condition: the residential premises being purchased (under construction) must be located on the territory of Russia.
How to apply for maternity capital to improve housing conditions for up to 3 years
Theoretically, maternal (family) capital or part of it can be spent only after three years from the date of birth or adoption of the second, third and subsequent children. But when using maternal capital to purchase housing, the state gives relief.
Maternity capital can be used to improve housing conditions earlier than three years. If you need to repay the principal debt and pay interest on loans and borrowings, including mortgages, for the purchase or construction of housing, then you can use maternity capital funds without waiting three years from the date of birth (adoption) of the child. Moreover, this opportunity does not depend on the date of conclusion of the loan agreement.
And now maternity capital can also be used as a down payment on a mortgage. Russian President Vladimir Putin also signed a law that allows the use of maternity capital to pay the down payment on a mortgage loan without waiting for the child to reach the age of three, in connection with whose birth or adoption the right to additional measures of state support has arisen.
Maternity capital for improving living conditions: how to spend money on apartment renovations
It would seem that renovating an apartment is also an improvement in living conditions, but this is not so. The housing area does not increase even during the most expensive European-quality renovation, which means renovation cannot be called a real improvement in living conditions. And accordingly, funds from maternal (family) capital cannot be used to renovate an apartment, purchase furniture and other economic needs, as this is not provided for by law.
Budget funds allocated under federal programs are carefully calculated. The level and quality of their use is constantly analyzed in order to improve the mechanisms for implementing activities. Thus, the Pension Fund of Russia (PFR) reports that since 2007, more than 90% of recipients have used maternity capital to improve their living conditions. This circumstance forced us to take a closer look at the mechanisms for transferring and monitoring this type of state aid. Let's look at how to spend maternal capital on housing in 2019 and not fall under sanctions from inspection organizations.
How is it allowed to manage government money using a certificate?
The methods for citizens to provide state assistance to families with children are set out in Article 10 of Federal Law No. 26-FZ of December 29, 2006, with amendments and additions adopted in the subsequent period. To improve living conditions there, it is proposed to make the following deposits of certificate money:
- Purchase residential premises using maternal capital or with its involvement.
- Use the certificate to compensate for mortgage payments:
- main;
- percent.
- Invest the amount of state aid into participation in shared construction of a house.
- Spend funds on the construction or reconstruction of premises suitable for habitation:
- on one's own;
- through specialized enterprises or organizations.
Important conditions for using maternal capital funds
The above law defines what “improvement of living conditions” is. These include operations that increase the level of well-being of a family with children. That is, measures should lead to:
- increasing the living space owned by the family;
- improving the quality of housing;
- the family obtaining full ownership of the existing apartment (house).
There are other conditions under which it is allowed to use budget money. The main ones look like this:
- The premises must be located within the borders of the Russian Federation.
- It must be registered as shared ownership of all family members, including minors.
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Deadlines for applying for money from the budget
- Registration of a mortgage.
- Repayment of a home loan received before the baby was born.
Purchasing housing using a certificate
A simple purchase and sale is carried out by two parties: the seller and the buyer. When using maternity capital, the number of parties expands: the state, represented by the Pension Fund, is added. It is this government agency that allocates budget money for this program. Thus, contracting parties are obliged to take into account the following points:
- Application for funds under a certificate to the Pension Fund by the buyer.
- Waiting for money to be transferred in non-cash form to the seller’s account.
- Division of ownership of the apartment among all family members.
In practice, the described conditions are implemented as follows:
- The first paragraph is stated in the contract indicating the deadlines.
- The second is also included in the agreement as a condition. It means that part of the payment will be deferred.
- The third must be completed by the buyer himself. The parent to whom the property right is registered undertakes the obligation to share it with other relatives, including minors.
Attention! There are two options for concluding a purchase and sale agreement for housing using maternal capital:
- the certificate completely closes the transaction;
- the family adds the missing funds from savings.
In the second case, the algorithm of actions is as follows:
- Signing a purchase and sale agreement with the transfer of your own part of the funds.
- Registration of the transaction with the authorities of Rosreestr, where a pledge of the apartment is registered against the amount paid by the buyer.
- Applying to the Pension Fund of Russia with an application for disposal of the certificate.
- Registration of property in Rosreestr after transfer of the remaining amount from the state budget.
Terms and conditions for transferring money by Pension Fund authorities
It is necessary to inform the home seller that maternity capital is involved in the transaction. This condition must be specified in the contract, otherwise PFR specialists may not transfer the money. Funds under the certificate are allocated in the following way:
- The owner of the document applies to the local branch of the Pension Fund with an application for disposal of the money.
- Documents proving the intended (legal) use of budget funds are attached to it.
- Pension Fund specialists study the papers for a month and give an answer. From March 29, 2019, the rules for approving applications have become more stringent. Now the Pension Fund of the Russian Federation will send inquiries to find out whether the house being purchased is dilapidated, and whether the apartment building in which the apartment is being purchased is considered to be in disrepair.
- The money, in case of a positive decision, is credited to the seller’s account two months from the date of application.
Attention: the owner of the certificate has the right:
- do not use the entire amount, but only part of it
- revoke the previous application if you change your mind about sending the certificate for the purpose specified by it.
Construction or reconstruction of residential premises
The above law allows you to direct state aid to:
- construction of a new building (individual housing construction);
- reconstruction of non-residential premises with a change in its functions to residential;
- compensation of costs for these types of activities incurred before 01/01/2007.
Attention! Maternity capital is allowed to be spent only on materials. Moreover, the work can be performed by:
- contractor;
- the owner of the certificate independently.
If a construction company was involved in the construction (reconstruction) of the building, then budget money is transferred to its account. The application for disposal of them should be accompanied by a contract agreement and cost estimates (only materials will be paid for).
From March 29, 2019, it will be necessary to provide the Pension Fund with a construction/reconstruction permit or notification issued under the new rules of the Town Planning Code.
Covering expenses when performing work yourself
In the case of independent construction, money is allocated in installments. Namely:
- half the amount before the start of work based on the provision of the following documents:
- certificate of ownership of the building or land for individual housing construction;
- permission from the local administration to carry out work;
- information from the banking institution about opening an account;
- 50% will be allocated six months later, from the moment the erected or reconstructed building is put into operation (confirmed by relevant documents).
Expenses are confirmed by payment documents indicating the purpose of expenses:
- checks;
- contracts;
- bank statements and others.
Compensation for previously invested funds
State aid to families with children is allowed to be used to compensate for previously incurred costs to improve living conditions. The following nuances are taken into account:
- the date of registration of ownership of a building reconstructed after 01/01/2007 is not taken into account;
- compensation for the construction of a building is issued if ownership of it is registered before December 31, 2006.
How to invest a certificate in shared construction
This type of property and financial relationship involves two parties to the agreement:
- construction company;
- Shareholders are citizens who invest in the construction of future real estate.
The algorithm of actions is as follows:
- The owner of the certificate enters into an agreement with the construction organization.
- The document indicates that a certificate for state aid will be used.
- A citizen applies to the Pension Fund of Russia with an application to send money to the cutter as a contribution.
- The rest is covered from savings.
Attention! To invest maternity capital in shared construction, additional funds will be needed:
- family accumulation;
- other real estate that can be sold on the secondary market;
- mortgage.
Investing aid in cooperative construction
Chapter 11 of the Housing Code, as well as Federal Law No. 215-FZ of December 30, 2004, regulate the creation and activities of citizens’ associations aimed at the construction of multi-apartment residential buildings and their further maintenance. In this case, it is allowed to use maternity capital for the contribution.
To apply to the Pension Fund for funds, one of the parents of the family must be a member of the cooperative. The organization will need to provide the charter of this association of citizens.
Attention! In order for the money to be allocated under the certificate, you will have to commit to dividing the ownership rights among all family members when it is finalized. Download for viewing and printing:
Where is maternity capital sent before the child’s 3rd birthday?
Since the beginning of 2009, an amendment to Law No. 256-FZ came into force. She added clause 6.1 to Article 7. According to this paragraph of the legislation, it is allowed to use the certificate immediately after receipt (without waiting for the child’s 3rd birthday) for:
- repayment of an existing mortgage loan;
- for the first deposit into a housing bank loan.
First mortgage payment
The owner of the certificate can deposit it with the bank when applying for a loan. At the same time, he is limited in his choice of banking institution, since not everyone wants to work with budget money. The positive side of such a transaction is that the state acts as its guarantor.
However, there are a number of restrictions that lie in the requirements of banks for a potential borrower. They require that:
- this person had an unblemished credit history;
- showed a sufficient level of income to repay the loan.
Attention! The following banking institutions work with the budget:
- Sberbank;
- Delta Bank and some others.
Mortgage repayment
If the loan was issued before the right to the certificate, then the family in 2019 has two opportunities to take advantage of government assistance:
- Reduce your monthly installment without changing your repayment schedule. In this case, maternity capital funds are evenly distributed over the remaining duration of the mortgage.
- Repay a certain number of payments (equal to a total of 256,026 rubles in 2019) and reduce the loan repayment period.
The design algorithm comes down to the following steps:
- Agree with the banking institution about the use of the certificate. If he agrees to receive a certificate of balance:
- principal debt;
- percent.
- Apply to the Pension Fund for the allocation of funds, providing a package of documents.
- It will take at least a month to wait for the decision of the Pension Fund specialists.
- After transferring the money, obtain a new repayment schedule from the bank (if the debt has not been fully repaid).
Features of using maternal capital for housing
The practice of implementing the Maternity Capital program has made it possible to eliminate some of the rough edges and shortcomings of the laws. This is useful, on the one hand, however, it imposes great responsibility on citizens, on the other. So, if housing is registered in the name of only one of the parents (or both without taking into account the rights of children), then he (they) must provide an additional document to the Pension Fund - an obligation to divide the property.
This paper should be drawn up in the presence of a notary or with his assistance. According to the rules, the obligation is considered an official document only after registration with notarial authorities.
Attention! Notary services are paid. You will have to spend an additional 500 to 2000 rubles (depending on the region).
In addition, Pension Fund specialists are now studying housing purchase transactions more closely. This is due to the fact that in recent years many cases of fraud involving cashing out budget funds have been revealed.
Dear readers!
We describe typical ways to resolve legal issues, but each case is unique and requires individual legal assistance.
To quickly resolve your problem, we recommend contacting qualified lawyers of our site.
In order to stimulate demographic growth, the state is introducing various programs designed to provide social assistance to the population and solve a number of financial, medical and housing problems related to the birth and upbringing of children. Maternity capital can be used to improve housing conditions by any family that has a second, third, or subsequent child, but it can only be used once.
Using the certificate when solving housing issues
The maternity capital program was introduced in 2007 and has been successfully used for many years. Officially, the program is valid until 2018, but the government is discussing the possibility of extending this project.
Statistics show that the majority of family certificates are aimed specifically at improving living conditions within the framework of the rules provided by law. In fact, real estate is the most serious of family acquisitions, requiring a significant amount of savings. Often families cannot raise funds even for a down payment on a mortgage and the dream of owning their own home seems unrealistic.
The Family Capital program is designed to help those in need to improve their housing, allowing them to manage funds from the state budget as follows:
- Buying an apartment (secondary sector and new buildings).
- Construction of a residential building (independently or using a contract).
- Reconstruction of a residential building with improvement of the technical characteristics of the object (area, height, insulation of rooms, landscaping).
- Partial or full repayment of an existing mortgage.
- Repayment of a targeted loan for housing construction.
- Purchasing the right to share participation in a facility under construction.
- Payment of a contribution upon joining a housing cooperative.
If you intend to spend money on solving housing problems, it is recommended to first obtain a family certificate from the Pension Fund of Russia (Pension Fund of Russia), giving the right to use maternal capital.
In addition, in the process of organizing actions to improve housing, it will be necessary to undergo additional coordination with the fund to ensure that the chosen disposal route complies with the options permitted by law.
Apartment purchase
The most popular and easiest way is to use government funds when purchasing a home. In this case, it is necessary to have a sufficient amount of your own savings, which would allow you to conclude an agreement to purchase an apartment. This method is only suitable if credit organizations did not participate in raising funds for the purchase and the property was not pledged as collateral to the bank.
Unfortunately, this method has a significant drawback - not all sellers agree to wait for 2 months until the Pension Fund considers the application of the certificate holder and transfers the funds. In addition, there is a risk of refusal to allocate funds from the budget for the purchase of this property.
Buying a private house or cottage
Families living in rural areas are more interested in buying their own residential home. The program implementation scheme in this case is similar to the allocation of funds for the purchase of an apartment. When planning to purchase a house, you should study in advance the requirements for residential buildings by the Pension Fund. There is also a risk of refusal to transfer funds at the stage of completion of the transaction.
Security measures should be taken by checking with the Pension Fund which building will be considered as a worthy option to improve the living conditions of the whole family.
General requirements for real estate include:
- classifying the building as suitable for habitation;
- housing cannot be recognized as dilapidated or subject to demolition;
- location of the object - only within the Federal District.
Credit institutions willingly participate in such social programs, offering, in the absence of funds, the use of targeted loans.
House construction and reconstruction
Frequent cases of channeling funds include the construction of residential buildings or the reconstruction of existing ones. In this case, it is possible to use contractors to carry out construction work or do it independently. When hiring workers for construction, funds from maternity capital will go directly to the account of the organization that performed the work, bypassing the certificate holders.
The scheme for realizing capital when building a house yourself is somewhat different:
- Having received a plot of land for construction, the certificate holder receives permission for construction work.
- An application is submitted to the Pension Fund of the Russian Federation with a package of documents attached and an indication of your current account for future transfers.
- The Pension Fund reviews the application and, after a two-month period, transfers the first tranche in the amount of 50% of the capital amount to the bank account.
- After the walls are erected, the foundation is laid, and the roof is covered, the family receives a document confirming the fact of construction.
- An application for the second tranche with the balance of the amount is re-submitted to the Pension Fund, but this can be done no earlier than six months after the application is submitted to the fund.
Housing reconstruction work involves the implementation of construction work with changes in the basic characteristics of housing for improvement. After reconstruction, the house should have additional living space, rooms should be insulated, and the living conditions of the whole family should be otherwise improved.
Mortgage under mother capital
Not all families have the opportunity to make significant expenses on purchasing housing or building a house due to lack of savings. This forces citizens to turn to banks for mortgage loans. The use of maternity capital will significantly reduce the family's financial obligations, since budget funds can be used to pay off an existing mortgage or as a down payment.
A special feature of channeling capital into a mortgage is that there is no need to wait for the child in respect of whom the right to maternity capital has turned 3 years old.
Thus, a mortgage is one of the fastest ways to acquire your own real estate, even in the absence of personal savings.
In the video about the use of maternal capital to improve living conditions
Thus, maternity capital funds are an excellent option for improving a family’s living conditions. There are several options for purchasing real estate, among which you can choose the most suitable one in each specific case.
