What is the program
Since 2020, a state program has been operating in Russia, according to which you can buy an apartment on a mortgage at a reduced rate. True, only housing in a new building is allowed to be purchased. But to participate, you do not need to have a family, children or low income, the program is available to all citizens of the Russian Federation (but banks may have their own requirements, such as age). We talked about how to buy an apartment using it in a separate article .
However, at the end of 2021, the program was extended to private homes. And in May 2022, another very important change was made to it, which allows you to build housing on your own.
The private sector is a specific topic, so we analyze it in this review.
What can you do with mortgage money?
The options are:
- Buy a finished or under construction house (including a townhouse) from a legal entity.
- Buy a house with a land plot from a legal entity.
- Buy a land plot for the subsequent construction of a house.
- Build a house with the involvement of a contractor (must be accredited by the bank, a random construction team will not work).
- Build a house on your own.
What are the conditions for a preferential mortgage to build or buy a house
Now the following rules apply:
- Interest rate – 7%.
- The initial payment is 15%.
- The maximum loan is 6 million rubles. For Moscow, St. Petersburg, Moscow and Leningrad regions – 12 million. This amount does not include the down payment.
- Banks that provide loans are listed on the website of the Dom.RF company responsible for the program. Now there are 76 of them.
- The program is valid until December 31, 2022. Until that day, you need to have time to get a loan, and not give it back. But it keeps getting extended. There is a good chance that this will be the case this time as well.
What about collateral when building a house on a preferential mortgage
With the purchase of a house, everything is clear, it works like any other mortgage. You enter into a contract of sale with the seller. The bank transfers money through it and receives your housing as collateral.
There are more questions with construction, because there are other risks. The bank can issue the amount that the client demanded, but he will not build anything. And the organization, in fact, will not have an object that it can receive as collateral. That is why things work a little differently here.
As a guarantee, you can offer other available housing, which is located in Russia. But let’s say the client has no property. In this case, the plot will first act as collateral. In addition, the recipient of the mortgage assumes the obligation to build a house within 12 months and register it with Rosreestr. And then this building will become a pledge. If the year is not met, the rate will be raised to a value equal to the key rate of +4.5 percentage points.
In addition, the bank may ask you to bring a guarantor – the loan obligations will be transferred to him if you stop paying him.
Read also 🏡