To begin with, you should clearly understand what the general concept of “mortgage” is. This is a type of contractual obligation of a civil nature and at the same time a type of pledge. Its essence when lending comes down to the following:

• the buyer uses borrowed funds rather than his own to purchase real estate;
• the bank’s money does not fall into the hands or at the disposal of the buyer (in cash or on a plastic card), but is immediately transferred to the seller;
• from the moment the purchase and sale agreement is signed, the buyer of real estate is its owner, possesses and uses it at his own discretion;
• disposition, as one of the powers of the owner-mortgagor, is limited by mortgage, which is a form of public encumbrance;
• until full settlement with the financial institution and cancellation of the encumbrance, the borrower cannot sell, exchange his property or use it as collateral for another loan without his consent;
• if the borrower stops paying, the bank (mortgage holder) satisfies its financial interests at the expense of the mortgaged property.

Social mortgages fully comply with all of the above characteristics. We can safely say that social and commercial mortgages work according to the same scheme.

However, the type in question has significant differences, since it is provided only to individuals who have Russian citizenship and belong to low-income segments of the population for the purchase of housing (commercial mortgages can equally apply to legal entities purchasing office or industrial premises). The loan is provided on preferential terms, which usually include a low interest rate and a long repayment period.

Characteristics of social mortgage programs

Today several basic programs are being implemented:

1. A large national project that is systemic, long-term and well-financed is “Affordable and comfortable housing for Russian citizens.” It involves many subprograms that are implemented in all corners of Russia and meet regional specifics.
2. “Mortgage for Young Families” is a program designed for young Russian couples and single parents with children, which involves payment at public expense from 35 to 40% of the book value of housing in a given area. Available only to families (but not single citizens), whose members:

• are recognized as sufficiently solvent to receive a loan;
• do not have an apartment/house in private ownership and have not received it from the state under a social tenancy agreement, or are provided with living space less than the established standard (42 sq.m. for a family of two or estimated living space - 18 sq.m. for each member of a larger family) ;
• have not reached the age of 35.

1. “Military Mortgage” is a federal program, participation in which is available to families of professional military personnel who entered into their first service contract before 01/01/2005 and served a total of at least 3 years. Provides for the use of a funded mortgage system. By participating in it, military personnel receive a certain amount annually, which can subsequently be used to purchase housing. In Moscow there are two versions of the program:

• purchase at cost of housing built by municipal authorities (price per square meter is approximately half the market price);
• payment of subsidies for the purchase of your own home with a mortgage (the percentage changes regularly).

1. “Maternity capital” is a system of regional programs for paying significant amounts at the birth of a child, which can be used to purchase housing for the family with the help of a mortgage.
2. “Young Teachers” is a profitable program developed by OJSC AHML (the government Agency for Housing Mortgage Lending) and allows a preferential category of citizens to take out a loan at 8.5% per annum.

What benefits can a social mortgage offer?

Government assistance to the poor can be provided in different forms. The most common ones are:

• reduced interest rate on a mortgage loan (the state compensates the bank for the difference in the profitability of a commercial and social loan);
• the opportunity to obtain housing on credit on preferential terms, for example, at a reduced price;
• long payment period (up to 30 years), the interest rate on which should not exceed 10% per annum;
• payment of a subsidy for the purchase of residential real estate, be it your own house, an apartment from a developer, a housing cooperative or the previous owner on the secondary market.

Every mortgager expects a significant tax bonus from the state. In accordance with the Tax Code of the Russian Federation, the borrower has the right to a tax deduction in the amount spent on residential real estate, the amount of which does not exceed 2,000,000 rubles. and interest paid on a real estate loan transaction. It is worth knowing that the deduction does not occur once in the year of purchase, but annually, until expenses are exhausted. You can use the deduction in two ways:

• If the borrower has one place of work, write an application and provide supporting documents. The accountant will stop deducting income tax from the salary until the right to the benefit is exhausted.
• In all other circumstances, remit the tax for the entire calendar year, and at the end of it, claim a tax deduction and get back the money spent.

How to use the right to a social mortgage?

The standard of living, the cost of living, and the provision of housing differ greatly in municipalities: there are economically active and depressed regions. Therefore, first, the poor need to navigate the existing options:

• find out about programs operating in your region by visiting your local government authority (information may also be available on the official portal);
• identify your compliance with the formal requirements for applicants - participants in existing programs (usually age over 18 years, citizenship of the Russian Federation, availability of living space less than the established norm; specialized programs have specific requirements);
• establish a list of banks operating under social mortgage programs for vulnerable segments of the population;
• familiarize yourself with the loan terms offered by each of them and choose the ones that suit you.

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Next, you need to prepare the required package of documents, draw up and submit an application to the local government authority for a mortgage on preferential terms. It should also be taken into account that the list of participants is formed in advance. For example, applications from low-income people who are potential participants in programs for the next year are accepted in the first half of the current year. In this case, there is a queue, main and reserve lists, etc. That is, the fact that the application was successfully accepted and the participant was placed in the queue does not always mean that the request formulated in it will be satisfied.

For the poor, it is a bank loan issued on preferential terms, supported by government support. Accordingly, when using it, cooperation is carried out from three sides: d state (regional authorities), tocredit institutions, mpoor family.

From the authorities, a low-income citizen can receive several options for support:

1. Repayment of part of the interest on the loan from budget funds.
2. Issuing a subsidy that can only be used to pay off the mortgage.
3. Providing a loan on preferential terms.

Legislative support of the issue

The poor are a category of citizens of the Russian Federation who are in dire need of social and legal protection from the state. The main law for resolving issues regarding the provision of credit is, which describes the very concept of “poor”, as well as possible options for supporting various segments of the population recognized as such.

State programs for low-income citizens

Preferential mortgages for low-income families in 2019 remain relevant under the Affordable Housing program, which includes numerous subprograms. Thanks to this, the state covers the maximum number of segments of the population.

Support for young families

This program is designed for families where one of the spouses is under 35 years of age. In addition, the presence of children plays an important role. also relevant for single mothers or fathers. Another condition is to be placed on a waiting list for an apartment.

In percentage terms, state support is distributed as follows:

1. A family with a child receives compensation of up to 40%;
2. Newlyweds without children can receive up to 35%.

The authorities are ready to compensate the price of square meters per person according to the standards (about 18 m2).

Military mortgage

The military can also count on government support in the form of accumulation of budget funds in a special account. A soldier in the army can only spend this money on housing, regardless of the city in the country. The conditions for obtaining a loan are somewhat stricter - the citizen must be no older than 45 years.

Support for young professionals

The program is not valid in all regions of the country. available for:

• moving to the village;
• scientific workers and others.

The complete list must be clarified with the regional administration.

Providing for citizens queuing for housing

• money to repay the loan;
• lending to social housing, which is sold by the authorities at prices below the market.

The program is used in regions with their own housing stock.

Maternal capital

The document is issued to families with two or more children. It can be used as:

• initial payment;
• payment of the principal amount on the loan.

Maternity capital can be used by a citizen who previously participated in the social support program.

AHML loan

The Housing Mortgage Lending Agency (AHML) is a government agency whose responsibilities include paying mortgages for low-income families. The organization offers preferential conditions to low-income citizens:

• lower interest rate;
• lower down payment;
• social housing at reduced prices.

The agency does not have representative offices in every region.

The procedure for obtaining and using a social loan

Despite the fact that there are many preferential mortgage programs for low-income families, the registration procedure has common provisions for all:

1. Find out if you qualify for the program.
2. Study bank offers.
3. Collect documents for government agencies and banks.
4. Submit to the administration at the beginning of the year.
5. Wait for the government agency’s decision to refuse or approve the application.
6. Get a certificate or open a bank account.
7. Visit the bank to receive a social mortgage.
8. Buy living space and pay the rest to the bank.

Before taking out a mortgage for a low-income family, it is important to check whether there is social housing in the region - it is cheaper.

List of social loan documents

Banks usually require several documents:

• program participant certificate;
• if lending is provided to a young family or a large family, then a document on its composition is required;
• Among other documents, you may need: SNILS, military ID, pension certificate and others, depending on the use of the program;
• certificate of income from the place of work.

List of banks issuing social mortgages

Lending institutions may vary by region. The main banks participating in social mortgages for low-income families in 2019 are:

1. Sberbank - this institution works with all programs. Each category of citizens has its own conditions for providing funds for mortgages for low-income families at Sberbank. The main one is making a down payment, which is calculated depending on the cost of housing.
2. VTB can give a loan to every citizen participating in a support project. The conditions for purchasing an apartment or house depend on the individual nuances of the program.
3. Rosselkhozbank is helping young teachers, scientists, military personnel, large families and all those who qualify for one of the social mortgage programs for low-income families in 2019 to get their own housing.

Regional social support programs

Low-income citizens do not have sufficient funds to buy housing. And the conditions of conventional mortgage programs of most domestic banks also do not allow them to become owners of their own cozy apartment. This is due to the increased requirements of financial institutions for the solvency of the borrower and high interest rates. Therefore, the state developed a special program aimed at citizens with low incomes. This social mortgage for low-income families allows them to improve their living conditions.

Who can get a mortgage?

The opportunity to obtain a loan on preferential terms is provided by the Housing Mortgage Lending Agency (AHML). Citizens of the following categories can take advantage of the beneficial program:

• Living in buildings unsuitable for habitation: recognized as hazardous, subject to demolition, etc.
• – participants of the NIS – savings mortgage system.
• Families consisting of two or more children.
• (one of the spouses is under 35 years old) with children. The family, in addition, may be incomplete.
• Persons who take part in the state program “Housing for the Russian Family”.
• Employees of defense industry enterprises with more than 1 year of experience.
• Citizens with disabilities or family members who are raising a disabled child, if registration was completed before January 1, 2005.

What benefits does social mortgage provide?

The state provides assistance to low-income citizens in various forms. The most widespread of them are:

• Reduced interest rate. The difference in income between a commercial mortgage loan and a social loan is compensated by the state.
• Social mortgage provides an opportunity to get housing space on credit on preferential terms, in particular, at a reduced price.
• Long term of the contract (up to 30 years).
• The interest rate should not exceed 10% per annum.
• Payment of a subsidy for the purchase of real estate, be it an apartment from a housing cooperative, a developer, a previous owner on the secondary market, or a private house.

A conversation about what a social mortgage is and what benefits it offers would be incomplete without mentioning one more factor.

Every citizen who takes out such a loan expects a significant tax bonus from the state. In accordance with the Tax Code of the Russian Federation, the borrower has the right to an amount equal to the amount spent on residential real estate, including interest paid on the loan transaction.

There are two ways to take advantage of the tax deduction:

• If the borrower works at only one enterprise, write an application to the accounting department and attach to it a package of documents confirming the payments. Income taxes will no longer be deductible until the benefit is exhausted.
• In all other situations, remit the tax in good faith throughout the entire calendar year, and at the end of the year, declare to the fiscal authority your right to a tax deduction.

Conditions for participants

The provision of social mortgages is regulated by the terms of the Housing for Russian Family program. Within its framework, two directions are offered - “Social mortgage: apartment” and “Social mortgage: house”. Each type has its own conditions.

Any of our compatriots can participate in the social mortgage program provided they meet the following requirements:

• Work experience at last place of employment for more than 6 months.
• An employee must have a stable income. The amount of monthly loan payments should not exceed 45% of the total family income.
• An individual entrepreneur must conduct profitable activities for at least 2 years.
• The borrower's age is not younger than 18 and not older than 65 years.

It is useful to know that mortgages are issued to low-income families only if they are on the housing waiting list.

Some banks put forward their own additional conditions for providing a social mortgage loan. The most common is the following: the borrower must have the funds to make a down payment of up to 20% of the appraised value of the home. You should know that the use of maternity capital is allowed. And for a mortgage for young families with government support, the down payment can be equal to 10%.

Registration procedure

Step-by-step instructions for applying for a social mortgage in AHML are as follows:

• A citizen chooses a bank from among AHML partners from which he plans to receive a loan.
• Having prepared the documents, he submits them along with the mortgage application.
• The bank makes a decision on granting/non-granting a loan.
• If the decision is positive, the borrower looks for housing suitable for purchase under the mortgage program.
• Having decided on the property, he submits documents for it to the bank.
• Next, the client orders a home assessment service from an independent company.
• The lender determines the size of the down payment taking into account the appraised value of the property.
• The parties sign a mortgage agreement.
• Then the actual purchase and sale of housing takes place. The borrower provides a copy of the real estate acceptance certificate to the bank.
• The transaction is registered in the state register.

Then AHML buys the rights to claim this loan from the bank. From this moment on, the Agency turns into a creditor. This means that the borrower solved his housing problem by taking advantage of a loan provided by the state.

Many of our compatriots consider the main advantage of a mortgage loan issued from AHML to be a low interest rate - no more than 8% in rubles. Of course, the offer is very tempting. But in 2016, mortgages for low-income families from the Agency are valid at this annual rate only for a down payment amount of 50% or more and for a loan term not exceeding 5 years. In other cases, the loan rate from AHML is lower than this parameter for mortgage loans from commercial banks by only 1-2%

List of documents

To apply for a social mortgage, you need to collect a package of documents. Be prepared that to the maximum you will have to provide the following documents:

• Statement. It must be filled out using the appropriate form. You can find out about it at your local administration.
• or .
• Birth certificates of all children in the family.
• Maternity capital (if any) must be provided.
• Information regarding family composition.

The period allotted for reviewing documents and making a decision is 15 working days. If the decision is positive, the applicant receives a certificate confirming the right to issue a mortgage. With it, he should contact a bank that issues such loans.

Participating banks

Not all Russian banks participate in the “Housing for Russian Family” program, but only the largest ones or those with state participation.

Sberbank

The advantages of a social mortgage from this financial institution include:

• Fixed interest rate.
• Reduced down payment.
• Maternity capital can be used to pay it.
• Providing a subsidy for the initial payment.
• Housing is purchased at a reduced cost.
• Sberbank provides mortgages to low-income families for a period of up to 30 years.

Other banks

You will find the conditions of mortgage social programs from a number of other financial organizations in the table below.

All these programs, including those from Sberbank, are aimed at low-income young families. And this is logical. After all, the majority of units of Russian society that have a low level of income fall precisely under the definition of a young family.

5 rules for a comfortable mortgage: Video

Assistance on behalf of the state when purchasing housing on credit is provided by the Agency for Individual Housing Lending - AHML.

It is provided as part of the implementation of the “Affordable Housing for Russian Families” program.

This agency, together with several banks, have developed mortgage lending programs for those who, without a large income, cannot qualify for a loan on general terms.

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Several popular options for assistance from the state:

Who is eligible for benefits?

Citizens can apply for assistance:

Conditions of receipt

Basic:

Borrower age	up to 35 years, that is, working age. The borrower must not have reached retirement age at the time of closing the mortgage line
An initial fee	from 10% to 40% of the cost of the purchased home. If you take a state subsidy, the state will fully or partially cover the fee. And the borrower has to pay the entire amount himself
Good credit history
borrower or applicant family	must be such that after paying the monthly contribution the family still has 55% of the total income left
The loan is issued only for the purchase of an apartment	a plot of land or a residential building (part thereof)

How to get a low-income mortgage

The beneficiary must first contact the nearest AHML branch and write a corresponding application, indicating the category.

Video: social mortgage - what opportunities do borrowers have

The agency will review. If the decision is positive, you will need to choose a bank that is a partner of AHML.

The agency also cooperates with developers who agree to participate in the preferential lending program. Therefore, the choice of housing will be relatively small.

While the bank is reviewing the documents, you need to select housing, which will become the subject.

The bank is unlikely to refuse to issue a loan to a beneficiary, since the state acts as a guarantor.

Single mothers

The certificate is issued by the social protection department at the place of registration.

A copy of this certificate will need to be attached to the application to AHML and to the bank.

It is necessary for the bank to approve a loan on preferential terms.

Large family

There is no separate federal program for them.

But in some regions, local programs have been developed for lending to large families for the purchase of housing.

If, in the process of repaying the loan, another child is born (or) in the family, part of the funds from the debt is written off.

For young professionals

The applicant must work in his specialty for at least three years, and in some regions, especially remote ones, even six months of work in his specialty may be enough.

Preferential loan programs for the purchase of housing have been developed for them.

For example, there is a “Mortgage for Doctors”.

The following can become participants in a special program for scientists:

Young professionals can get a mortgage from Rosselkhozbank or AHML.

For public sector employees

The applicant must:

State employees who are entitled to benefits include workers in the fields of education, culture and healthcare. Young teachers and doctors were placed in a special category.

Sequence of stages

Procedure:

First you need to get on the waiting list at your place of residence	as in need of improved living conditions or as in need of housing. To do this, you need to visit the housing department in the administration or the social protection department. And write a corresponding application, attaching to it a package of documents that confirm the presence of difficult living conditions
Visit AHML and choose a government assistance program	in large cities such as Moscow and St. Petersburg, the amount of state subsidies does not exceed 20% of the cost of housing, while in other regions, especially remote ones, where there is a shortage of specialists in any field, assistance from the state can be as high as 60%.
Conclude a mortgage agreement with the bank	AHML cooperates with a number of banks that have lending programs specially designed for beneficiaries
Select housing and register ownership of it	In addition to partner banks, the agency also has partner developers. Therefore, the choice of housing will be quite limited

Collection of necessary documents

To apply for a social mortgage in Moscow and other regions, you need to prepare:

Application for a mortgage	and the applicant's passport
Birth certificates for children under 4 years of age	if the family that wants to apply for a loan has children aged 14 to 18 years, then their passports must also be presented
Marriage certificate	and the second spouse to complete the purchase and sale transaction
Certificate of	that the applicant needs accommodation
Certificate confirming income	this can be a certificate in form 2-NDFL or in the form of a bank
from the house book	and a work book confirming work experience
For young professionals
Certificate of maternity capital	if it is as a down payment
Other documents that the bank may require	depending on the category of borrowers and the specific situation

Application Form

Its form is developed by each specific bank.

But there is general information that is indicated by all applicants:

Personal data about the consumer	here the applicant states: Your personal information from your passport. Contact details. It is better to indicate all available mobile phones, email addresses, social network accounts and other information. The level of education. Family status. Presence or absence of children
Financial section	here the applicant states: information about your ; about the employer; financial position; information on current obligations. For example, the applicant pays alimony in favor of his child from a previous marriage
Information about the loan product that the applicant wants to apply for	This block is filled out with the help of a loan specialist. Here it is indicated: The amount of funds contributed by the applicant. Even if we are talking about government subsidies for the purchase. Parameters of the purchased property. Targeted lending program. For example, “Mortgage for a young family”
Information block	confirmation of the specified data in the application

Attention!

• Due to frequent changes in legislation, information sometimes becomes outdated faster than we can update it on the website.
• All cases are very individual and depend on many factors. Basic information does not guarantee a solution to your specific problems.

That's why FREE expert consultants work for you around the clock!

Many citizens of our country have income levels below average. Sometimes they do not even have the money to provide themselves and their children with a decent standard of living. There is no talk at all about buying a home for cash or even on credit. The only solution to the housing problem may be the so-called social mortgage for the poor. These are special government programs designed for different categories of citizens with low incomes.

Who can count on a social mortgage for the poor?

Regardless of what specific social program we are talking about and in what region it is being implemented, the requirements that candidates for receiving a social loan must meet are approximately the same. In particular these are:

1. living by two or more families in the same living space;
2. living in rented housing without having your own;
3. living in a communal apartment or in living space that does not meet the standard of fourteen square meters per person;
4. living in premises that are not intended for living or do not meet the requirements for housing.

In addition, the requirements for candidates are determined by the characteristics of each individual program. For example, in the case of providing benefits to young families, candidates for their allocation must be under 35 years of age. Those who apply for a soft loan with repayment of part of the interest or down payment from the budget must stand in line to improve their living conditions. Some programs aimed at representatives of specific professions contain a condition on having a certain length of experience, and so on.

Social mortgage for the poor: provision options and conditions

There are several options for providing assistance for the purchase of housing, these are:

• issuance of preferential loans with repayment of part of the interest by the state or with other types of compensation;
• allocation of housing subsidies, which can be used for lending;
• loans for the purchase of social housing sold at reduced prices.

Preferential loans

Issuing loans on preferential terms is usually practiced by special funds or credit organizations that are fully or partially owned by the state. A striking example is AHML. This organization offers many different lending programs, the terms of which are much more favorable than those offered by the vast majority of commercial banks. All damages and losses from the implementation of certain proposals will be compensated by the state. But loans issued within this area, as a rule, pursue specific goals. Therefore, candidates for receiving them are carefully selected.

Housing subsidies

Subsidies, as a rule, are allocated to young families, public sector employees and other citizens in need. Subsidy amounts may vary. For example, young families can receive up to 40% of the average cost of housing in the municipality where they live. Housing subsidies can be used to make a down payment on a mortgage, to pay off interest or part of an existing loan, or in a cash purchase transaction. Housing subsidies are the most common form of government assistance for the poor, therefore, if you receive a certificate confirming your right to assistance, its physical transfer may take quite a long time. As a rule, any housing subsidy can only be issued once.

Social housing

Social housing includes apartments that are municipally owned, as well as apartments in new buildings that the state reserves for preferential sale. Such housing is sold to those in need at reduced prices, and new apartments are sold at construction costs. A preferential loan from a special housing fund or other authorized organization may be allocated for the purchase of social housing. This property is sold to representatives of certain professions, large families, etc. As a rule, the number of subsidized housing is limited and it is allocated quite rarely.

It should be noted that each region has its own rules and features of housing programs. In some regions of the federation, social mortgage programs do not work at all, while in others they are implemented widely and extensively.

This is determined by many factors, the main ones being:

• the need to attract people to a specific region;
• the need to improve the demographic situation in the region;
• shortage of certain categories of specialists (teachers, state employees, police officers, etc.);
• the state of the housing stock in the region;
• balancing the regional budget and so on.