Maternity capital is a state form of material support for families at the birth (adoption) of a second, third, etc. children in 2020. It is worth understanding that money allocated from the budget cannot be spent “just like that”; it is not an allowance that is used at the discretion of the family for urgent needs. Naturally, the question arises: Is it possible to repay a consumer loan with maternity capital (MC) in 2020?
The possibilities for using capital are strictly regulated by current legislation, so the question of whether it can be used to pay only certain types of loans, for example in 2020, remains closed.
How can you use maternity capital in 2018?
All transactions are non-cash, they can be used for:
- Education of children in the future;
- Preparation of the mother's future pension;
- Improving living conditions.
It is worth remembering that the certificate funds are not issued in person and cannot be cashed out.
What can you pay off MK?
Is it possible to repay a consumer loan from Sberbank (or any other bank) with maternity capital in 2020? The answer will be positive, provided that the contract can specify any actions related to improving housing conditions as the purpose of obtaining a loan. These include:
- Mortgage agreement in Sberbank;
- Down payment for equity participation in a housing cooperative (or other construction);
- Consumer targeted loan for the purchase of materials for repairs;
- A loan for the purchase of an apartment, even if it is issued as a consumer loan.
A prerequisite is the target indication in the loan agreement at Sberbank of any action aimed at improving the family’s living conditions, even if such a loan was received before the birth of the child and receipt of the certificate
Who can use MK
Is it possible to repay my husband’s consumer loan from Sberbank with maternity capital? It is possible, but current legislation strictly regulates the circle of persons who have the right to use MK. These include:
- Mother;
- Father;
- Guardians who officially adopted the child.
Apart from them, no one can use the document even for the purposes provided for by it. Therefore, is it possible for a husband to have the same right to dispose of MK? It is possible provided that the husband is the father of the child. That is, if we are talking about a family in which it is not the husband or the natural father who is raising the children, and the husband has not adopted them, then the right to use the certificate does not apply to him. Consequently, it is not possible to repay a mortgage (or any other) loan issued to my husband at Sberbank.
To the question, can my husband use maternity capital in favor of a consumer loan from Sberbank, which is issued to him? The answer will be positive if he is officially recognized as the father of the child
Housing “with state support”
A mortgage is now becoming essentially the only option for thousands of families to acquire their own spacious home. And maternity capital helps many with this. In recent years, its amount has remained unchanged, and in 2020 it is still 453 thousand rubles (by the way, this is from 10 to 40% of the market price of housing - it depends on the value of real estate in a certain region). These government funds help parents, among other things, resolve this issue by reducing the burden on the family budget in the form of monthly contributions to the bank. This opportunity is provided to Russians by Federal Law No. 256-FZ and Decree of the Government of the Russian Federation No. 862 (of course, housing must “have registration” in the Russian Federation).
You can deposit funds to close the mortgage without waiting for your youngest child’s 3rd birthday.
We emphasize that the funds issued by the state to parents under the certificate can be used both as a down payment for the purchase of a cherished home, and as payment for the remaining debt and interest. The legislation limits the rights of certificate holders to protect funds from being wasted, and does not give them the right to pay off monthly payments or late fees from this amount (any fraudulent activity by which some citizens seek to obtain funds in their hands is illegal).
The transfer of “maternal” money to a bank account when repaying a loan should be a one-time transfer, and it is impossible to divide it into parts when settling with the bank. However, it is worth saying that the family, at its own discretion, can use part of the funds to purchase housing, and the rest to other expenses that are provided for by the certificate program: pension provision for the mother, education of children or rehabilitation of children with disabilities.
How can you use maternity capital?
Is it possible to repay a consumer loan for an apartment from Sberbank with maternity capital, and how to do this? The amendment adopted to the law can be applied to improve housing conditions without waiting until the age of three.
Therefore, is it possible, immediately after receiving the document, for the family and husband to have the opportunity in 2020:
- You can draw up a mortgage agreement for your husband at Sberbank;
- You can use the funds as a down payment (in part or in full);
- You can pay the body or interest on a valid loan agreement with Sberbank, provided that it concerns the purchase/construction of housing.
- You can conclude a new agreement at Sberbank for your husband, including a consumer agreement, indicating the specific purpose of its use.
Mortgage in Sberbank
Sberbank has several mortgage lending programs. You can close any of them early. However, it is specially designed for young parents:
- mortgage with state support for families with children;
- mortgage plus maternity capital.
In both cases, you can buy an apartment on the secondary real estate market or in a building under construction.
Mortgages with state support are available to families with the birth of a second or third child. This is a promotional offer that is valid until the end of 2022. In this case, the second or third child should be born no earlier than January 1, 2020.
As part of this program, for the first 3 years of payment, the interest rate is set at 6%, after the end of the grace period it will be 9.25% per annum. As support, you can receive 3 million rubles, but in Moscow and St. Petersburg the amount increases to 8 million.
The “Mortgage plus maternity capital” program is an opportunity to use MK as a down payment. However, the terms of the loan will be standard, i.e. amount from 300,000 rubles and rate from 8.6% per annum.
You can apply for a mortgage using an application submitted through the DomClick service, where you will need to attach scans of:
- passports (your own and the co-borrower’s, if you have one);
- marriage certificate (if any);
- registration certificates;
- 2-NDFL certificate or other document confirming income.
Attention! When applying for a mortgage, proof of income and identity is required for both parents.
Paperwork
Is it possible to repay a consumer loan from Sberbank for housing with maternity capital? Yes, you can. Sequence of actions in 2018:
- Contact the pension fund with a corresponding application;
- Provide all necessary documents (the full package of documents depends on the options for using the MK; this issue should be clarified with the Pension Fund);
- Submit an application to a financial institution with mandatory notification of the desire to use MK;
- Receive the decision of the pension fund and provide bank details indicating the current account to which the funds should be transferred.
In order to be able to repay a consumer loan for housing with maternity capital, you must first go through the entire paperwork procedure
Maternity capital as a down payment on a mortgage
Situations often arise when a family does not have money for a down payment on a mortgage, and purchasing more spacious housing is vital. In this case, the bank will refuse lending, but if the owner of the certificate (also a potential borrower) takes out a loan from a cooperative using capital for an initial mortgage payment , then he will already bring real money to the bank and the bank will approve the loan.
It is important to remember that not all financial institutions have suitable lending programs. Also, the requirements for borrowers for such mortgage loans are more stringent, since the purchase and sale of residential real estate occurs using budget funds.
Bottom line
So, you have learned about how it is allowed to use MK in the banking sector and whether it is possible to repay a consumer loan with maternity capital in 2020. The current law does not allow the use of MC in any way not provided for this purpose. For example, when trying to draw up a real estate contract between close relatives, such an action will be regarded as fraud and an attempt to illegally cash the certificate. Therefore, you should not wonder whether you can try to circumvent the law. Use MK within the framework permitted by the legislation of the Russian Federation.
Mortgage for maternity capital up to 3 years
In conditions of constantly growing inflation and rising real estate prices, timely purchase of a home can significantly save the family budget. Housing lending is the only legal way to use maternity capital before the age of three
second child. The possibility of drawing up a loan agreement with banks such as Sberbank and VTB24 allows a young family to purchase housing immediately after the birth of their second child.
Many parents are in a hurry to purchase housing, since money under the MSK program significantly depreciates over time. If there is no money for the down payment on a mortgage loan, as well as the opportunity to accumulate a large amount in a short time, then you need to contact a consumer credit cooperative (CPC). In such financial organizations you can get a loan for a down payment on a mortgage using maternity capital
under attractive conditions.
For what purposes are you allowed to spend maternity capital?
The use of maternity capital is regulated by Federal Law No. 256 on measures to support families with children. Detailed information is also presented on the official website of the Pension Fund, where you can submit an online application for a subsidy.
In 2020, financial support can be used for the following purposes:
- changing living conditions in favor of family members;
- increasing the funded part of the mother's pension;
- payment for children's education;
- adaptation and socialization of disabled children;
- monthly payments.
You can often find offers to cash out money using a certificate. Participation in such activities is a crime and is classified as misuse of public funds. You can only receive money through a monthly payment. This opportunity was introduced on January 1, 2020.
Let's take a closer look at the ways in which living conditions can be improved with the help of government support.
- Buying an apartment or house. The main requirement for the property being purchased is the availability of the necessary living conditions.
- Construction of a house or reconstruction of housing either by a construction company or by one’s own efforts. Money cannot be used for major or cosmetic repairs of housing. Reconstruction refers to such construction work as a result of which the living space of the premises has increased. If the right to state support was obtained after the construction or renovation of a house, the costs can be compensated. Buildings built in 2007 and later are taken into account.
- Mortgage repayment, contributions to a housing cooperative, payments for participation in shared construction. The subsidy can be used as a down payment or collateral to obtain a targeted loan for the purchase of housing. In this case, the benefit can be used at any time after receiving the certificate.
Documents for repaying a mortgage with maternity capital
First of all, you need to contact the bank where you plan to apply for a mortgage loan. The borrower writes an application for early repayment of the mortgage with maternity capital
, receives a certificate of debt balance and submits the necessary documents to the Pension Fund, namely:
- Certificate owner's passport
- Application for targeted allocation of funds
- Original certificate for receiving MSK
- Bank certificate confirming the balance of the loan
- It is mandatory for the homeowner to register shares for all family members after repaying the mortgage and removing the encumbrance
- Documents required by the Pension Fund (requested in non-standard situations)
- Documents confirming the intended use of money (certificate of ownership, agreement of participation in shared construction, statement of membership in a housing cooperative, construction permit
It takes the Pension Fund no more than 2 months to make a decision. The decision can be either positive or negative. An application for payment of funds can be cancelled. After approval of the Pension Fund for the use of maternity capital to repay the mortgage
The bank transfers the amount of money to the borrower's loan account.
Process description
When can you spend maternity capital on a mortgage? If you decide to use federal money to pay off your home loan, you will need to make an appointment with FIU. This can be done through the official website of the organization or through Gosuslugi.rf.
Registration usually takes 2-3 weeks. Therefore, you will have time to obtain the necessary documents.
During this time, you will need to formalize with a notary an obligation to divide shares in housing , taking into account children.
You will also need to take a certificate from the bank about the balance of the debt.
All other documents will be in your hands.
These include the applicant’s passport, marriage certificate and children’s birth certificates, housing documents, including a mortgage and loan agreement.
It is recommended to obtain a sample bank certificate and commitment from the Pension Fund branch in advance.
Otherwise, you will be sent to receive these documents again. So, you will lose several weeks, and in the case of an obligation, also several thousand rubles, since registration with a notary costs from 1 to 12 thousand rubles.
When you submit your documents, the Pension Fund will have 30 days to verify them. Then they will pay maternity capital to the bank to pay off the mortgage. It takes another 30 days to transfer the money.
For instructions on repaying a mortgage with capital, watch the video.
Read about whether maternity capital can be used as a down payment on a mortgage and how to do it correctly.
Loan programs
Financial institutions offer different programs. Common ones are:
- housing loans, mortgages;
- loans for vehicles;
- consumer loans for specific purposes;
- consumer loans without a purpose;
- microloans;
- social and trust programs.
In addition to the division by intended use, the loans also differ in the method of obtaining funds. Programs are divided into:
- loans that are provided in cash;
- non-cash payment for goods and services;
- transferring money to an account or card.
These criteria affect the possibility of using the subsidy. But the law does not allow spending funds on cash loans, since the main condition is met - a ban on cashing out money. Therefore, it is not possible to repay a consumer loan with maternity capital in all cases.
Features of using maternity capital within mortgage lending
If a family decides to use maternity capital to improve their living conditions through mortgage lending (repay the mortgage with maternity capital), then it must be remembered that there are three main options for using family capital:
- Repayment of principal and interest on a previously issued housing loan. This is possible when working with Sberbank, DeltaCredit Bank.
- Using maternity capital as a down payment on a newly issued mortgage loan. This is possible at the Bank of Moscow, at VTB24 Bank, at Nomos Bank, at DeltaCredit Bank.
- Increasing the mortgage amount due to the equity in the purchase of a home that is more expensive than your income allows. This can be done at Rosbank, Izhkombank, Tver Mortgage Center, the Agency for Housing Mortgage Lending, and UniCredit Bank.
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The main features of the use of maternity capital within the framework of mortgage lending are the following. Firstly, maternity capital is not cash, but simply the family’s right to government assistance, confirmed by an appropriate certificate.
Therefore, the understanding of capital as something that can act as collateral for a loan or as security for it is incorrect.
Secondly, not every bank accepts maternity capital in the form of payment for the principal debt and interest on the use of loans. It is even more difficult to use maternity capital in the form of a down payment on a mortgage loan.
Thirdly, maternity capital can be used to purchase any housing (built, under construction, at the project stage), but this can only be done through direct purchase and sale or construction.
If maternity capital is used as part of mortgage lending, then the type of housing purchased is determined by the bank and the specific loan product: some banks (loan products) work only with new buildings, others, on the contrary, with secondary housing.
Fourthly, in order to use capital to repay a previously issued housing loan, there is no need to wait until the child’s third birthday or the expiration of a three-year period from the date of adoption of the child. However, in order to use family capital for a down payment on a mortgage loan, you must wait a three-year period.
Fifthly, when purchasing housing using capital (or part of the funds), the residential premises must be registered as the common property of all family members (parents and all children).
Which banks work with maternity capital?
We can name the following banks that in 2020 issue mortgage loans using maternity capital (that is, accept family capital in the form of a down payment) and/or repay housing loans with maternity capital funds:
- DeltaCredit Bank. This bank issues a housing loan using maternity capital with a minimum down payment of no more than 5%. Family capital funds can be used to make a down payment and to repay the principal and interest on the loan early. The bank takes into account the solvency of the applicants, as well as the remaining amount of maternity capital when calculating the maximum loan amount in order to work with maternity capital;
- UniCredit Bank. This credit institution allows you to use maternity capital to pay off your mortgage;
- Sberbank. This bank works exclusively with finished buildings and issues loans at a rate of 14% per annum for a maximum of 30 years. Residential premises purchased using Bank loan funds must be registered as the property of the borrower/common shared property of the spouses and his/their children;
- Bank of Moscow. This banking institution does not yet accept maternity capital as a down payment, but it repays the principal amount of mortgage loans and interest on it;
- VTB 24. In this bank, the rate on housing loans is 11% or higher, and loans are issued for a period of up to 50 years. This year, VTB24 Bank provided the opportunity to use maternity capital as a down payment on a mortgage;
- Nomos Bank. This bank relatively recently began working with maternity capital, but has already been able to offer a very profitable loan product that allows you to effectively use capital funds to improve housing conditions;
- Rosbank. This bank offers borrowers to expand their opportunities to purchase housing on credit by repaying loan debt with capital;
- Izhkombank. The bank offers loans for the purchase of residential premises and for the completion of construction of an unfinished construction project;
- Tver Mortgage Center. Working with this institution will allow you to purchase more comfortable housing by increasing the loan amount without taking into account bank restrictions;
- Housing Mortgage Lending Agency. This credit institution offers profitable mortgage loans with capital raised as a down payment and as amounts to repay the principal and interest on the loan.
Required documents
Each bank's package of documents will be different. Below is a standard package of documents that any bank may need to apply for a mortgage when a family uses maternity capital:
- Maternity capital certificate - original and copy;
- A certificate from the local branch of the Pension Fund about the amount of the family capital balance in the family account;
- Certificate 2-NDFL (certificate of income for the last six months);
- Copies of the most recently completed and submitted tax returns (mother's and father's);
- Documents confirming the income of close relatives (regardless of whether they will be guarantors for the loan);
- Applicant's passport;
- All documents related to the residential premises being loaned.
Step-by-step instructions for paying a down payment on a mortgage
To apply for a mortgage when using maternity capital in the form of a down payment, you must follow the following sequence of actions.
Remember that you can use capital in this direction only after three years or more have passed since the birth or adoption of the child.
- Receive a certificate for maternity capital, select residential premises to purchase it with a mortgage.
- After receiving a certificate from the Pension Fund and concluding a contract for the sale and purchase of residential premises, you need to contact the bank with a full package of documents (see above).
- The bank will consider the application for a loan and the use of capital as a down payment on a loan from several days to a month.
- After approval of the loan application, the bank will issue a preliminary letter of confirmation of the loan and notify the borrower of the deadline for transferring maternity capital funds to make the down payment.
- Having received a preliminary letter about the loan, the borrower must contact the Pension Fund to transfer capital funds. This is done in order to request a certificate from the Pension Fund about the amount of capital balance (even if they have not been used at all previously).
- Go to the bank and apply for a loan. Receive copies of all mortgage documents.
- Contact the Pension Fund with an application (with attached loan agreement and mortgage agreement) to deposit capital funds into the bank account.
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Conditions for providing funds to pay for loans
Maternity capital is allowed to be spent if the child is 3 years old. The exception is loans to improve housing conditions. To pay for them, funds can be used immediately after receiving the certificate.
Funds can be used for:
- payment of the first installment;
- repayment of part of the principal debt;
- interest.
The timing of the loan is not important. You can even pay off loans that were received before the right to use the certificate arose.
Maternity capital and civil marriage
In order to pay off the husband’s mortgage with maternity capital, it is necessary that the marriage be officially registered. If the marriage is civil, then it will not be possible to pay off his debt. With MK funds, a wife can only pay off her own mortgage, if it was previously taken out.
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The same situation applies to a divorced couple. For example, they decided to pay off the balance of payments with a certificate and divide the apartment in half. However, the Pension Fund will not give permission for the operation - divorced people are not considered a family, therefore, it will not be possible to pay the spouse’s debt.
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It’s another matter if the mortgage was taken out jointly during marriage, and even after the divorce, the former spouses continue to jointly pay the common debt. In this case, it will be possible to pay off the husband’s debt.
Later in this article:
Repaying a consumer loan
A consumer loan is the provision of money to citizens for goods and services. The list of goods on which funds can be spent is large. They are used to purchase:
- real estate;
- transport;
- household appliances;
- furniture;
- special equipment;
- products.
How can you spend maternity capital on a consumer loan? In this case, it is important that the product or service relates to the purpose for which it is permitted to be used. If the loan is for food, household items, furniture and other things, then you will not be able to use maternity capital.
