Options for using maternity capital to improve housing conditions

The law allows the use of maternity capital for any transactions if they are formalized and carried out legally. First you need to decide where exactly the financial assistance is going.

The Housing Code defines several categories of real estate that are considered residential premises:

1. Parts of residential buildings or apartments.
2. Complete residential buildings and apartments.
3. Rooms.

Funds are allocated to address the following issues:

• Purchasing a residential property or repairing it with the involvement of a contractor.
• Construction and reconstruction of residential premises without the participation of contractors.
• Compensation of costs for an object that was built or reconstructed.
• Payment for participation in shared construction with various objects.
• Initial payments when obtaining loans.

Reference! Until the child reaches the age of 3 years, maternity capital can be used to improve housing conditions only in the case of a mortgage. In other cases, you must wait until you reach the specified age.

Buying land to build a house

The main condition for use is that the land plot itself be owned by the person who received financial assistance.

You can use several methods to register property rights:

1. Purchase of the corresponding plot.
2. Registration of inheritance rights.
3. Drawing up a rental agreement.

It is especially important to approach the issue competently when choosing a construction company to perform part of the work. It is important to look at which areas these specialists have already participated in the construction of.

According to the rules, funds are transferred to the account only after providing and studying the following documentation:

• Proof that the family will receive ownership of the property no later than six months after the work is completed.
• Permission to erect a residential building, issued in writing.
• Legal documentation.
• The certificate itself.
• SNILS.
• Identification document.

Home construction

If this task is solved on their own, the law sets certain time limits. The foundation of the house and the frame must be ready no later than six months after receiving the money. Less time is needed for work in which representatives of a construction company are involved.

It is also useful to read: Is it possible to take out a loan against maternity capital to build a house?

Reconstruction of a house using maternal capital funds

Reconstruction is work that results in a qualitative improvement in the basic technical characteristics of the house.

These actions include:

1. Converting an attic into an attic.
2. Superstructure of floors.
3. Increase in area.

You can ask for financial assistance in advance, or apply after the project has been put into practice. For the latter case, it is important that everything is formalized, keeping receipts for the purchase of materials and equipment.

Reconstruction does not include:

• Parquet flooring.
• Replacement of pipes and other similar finishing works.

Therefore, such expenses cannot be paid from maternity capital funds.

Buying an apartment or house (with partial payment with maternal capital)

When buying a home using maternal capital, the main thing is to avoid housing that has one of the following characteristics:

1. Dilapidated.
2. Emergency.
3. Unsuitable for habitation.
4. With wear of 50% or more.

It is important that the building is located within populated areas where you can get access to any public service institutions or education for children.

To cash out maternity capital, they often use a scheme that involves purchasing housing from relatives. Therefore, regulatory authorities always check such actions, carefully assessing all the factors associated with them . It is better to carry out preliminary approval by submitting technical and legal documentation to the regulatory authority.

Important! We must remember that the purchase of land is formalized using a separate agreement.

Purchasing real estate with a mortgage using MK

For banks, obtaining a mortgage using maternity capital can become a relevant additional guarantee. Its use increases the chances that the decision will be positive. But not every applicant is given such assistance. It is necessary to have not only a stable income, but also a permanent official job. Maternity capital is a kind of insurance; it can be used to pay off down payments or principal debt.

When you deposit a large amount at once, it is easier to pay off current debts. This reduces your total monthly payments. The main thing is to contact the employees of a reliable bank, one of the largest participants in the transaction.

How can I spend a certificate before my child reaches 3 years of age?

The law states that until a child turns 3 years old, payments in connection with maternity capital can only be used to pay off the mortgage. But you can always find a way out of such a situation that suits both parties.

You can build a house before the child is 3 years old. The main thing is to keep all documents to confirm expenses. After reaching the appropriate age, they are sent to one of the nearest Pension Fund branches.

In addition to SNILS and the certificate itself, along with a civil ID, a package of additional documentation is required:

• Evidence of expenses incurred.
• Written confirmation that after at least six months the family will own the home.
• Certificate of participation in the state program for building a house.
• Document on property rights.

Attention! It is beneficial to take out a mortgage from a bank if your own finances are not enough to resolve the issue. Thanks to government assistance, it is easier to pay off the debt, in whole or in part.

The list of documentation largely coincides with what was mentioned above:

1. Proof that after six months the family will receive ownership of the property.
2. If construction has not yet been completed, a copy of the document associated with the building permit will be required.
3. Proof of ownership. Required for any objects, regardless of whether construction is completed or not.
4. A certificate from the bank describing the balance of the debt.
5. Mortgage agreement.
6. Maternal certificate.
7. SNILS.
8. Documents for identification.

The following most reliable financial organizations help solve housing problems:

• Bank opening. Particularly aimed at new buildings and shared construction.
• VTB 24.
• Alfa Bank.
• Bank of Moscow.
• Sberbank.

Most organizations have standard rates of 12-14%. From 5 to 50 years will be the standard debt repayment period. But individual conditions may vary depending on the specific client.

Notaries help draw up agreements for the fulfillment of obligations. It is recommended to contact them so that the documents do not lose their legal significance.

Notaries ensure that agreements meet the interests of each interested party - this applies equally to both spouses and children. The size of the share for each family member is fixed on paper without fail. To allocate a share to the father, it is necessary to follow the official registration of the marriage itself.

Such agreements do not affect existing terms from banks and should not change the current debt. They simply become an additional guarantee for citizens.

What is improvement of living conditions under a maternity capital certificate?

The law provides for the possibility of using MSC funds to pay for any transactions for the acquisition of real estate that do not contradict the law. Certificate holders only need to determine where exactly and how they dream of creating a family nest - whether it will be a country house built with their own hands, or an apartment or house they want to purchase ready-made or in a house under construction. The most important thing is that as a result of the transaction, the family must purchase housing.

The concept of “residential premises” from the point of view of the Housing Code of the Russian Federation includes:

• apartment, residential building;
• room;
• part of a house or apartment.

Where to start for a family who wants to improve their living conditions with a certificate? First of all, they need to decide whether they plan to use it until the child is 3 years old or are willing to wait.

Until a child turns 3 years old, the range of use of MSK funds is somewhat limited, since in this case the funds can only be used to purchase housing using loan funds (to pay a down payment or pay off an existing mortgage).

The period of 3 years from the date of birth was determined by the legislator in order to prevent attempts by unscrupulous parents to enrich themselves at the expense of their children and after that, literally speaking, send them to an orphanage.

It is believed that after 3 years, even the most careless parents should awaken parental feelings for the baby and they will no longer leave the child to the mercy of fate. From this date you can use the certificate in all permitted areas.

Allocation of shares to children when using maternity capital

In all cases when the housing purchased using the MSK certificate is not registered in the name of all family members (for example, when repaying a previously taken out mortgage), the owner of the property - the mother or her husband - gives an obligation certified by a notary to register the property acquired using maternity capital, the property of all family members.

In this case, family members include:

• mother of children;
• her spouse (even if he is not the biological father of the children);
• the children themselves (including those not yet born), if they are born at the time of registration of common property as part of the fulfillment of an obligation.

The size of shares, according to the capital law, is determined by agreement of the parties. But since the interests of minor children are affected here, it will often be possible to register real estate for them in an amount no less than their share would be if divided among all family members in equal shares.

It is impossible to carry out alienation (sale of purchased housing, donation, etc.) before fulfilling the obligation to allocate shares to all family members, since this would be a violation of the law and may be regarded as fraud with federal funds.

Maternity capital for a down payment on a mortgage

The opportunity to transfer capital funds to pay a down payment in case of purchasing real estate could be an excellent opportunity for families with children to improve their living conditions. However, in practice, this rule practically does not work, since credit institutions refuse to finance such loans or loans to borrowers. What is this connected with?

The list of documents for using a certificate for the payment of a down payment indicates a credit or loan agreement concluded with the bank, according to which the credit institution must transfer the entire loan amount to the account of the real estate seller at once. However, maternity capital funds will be credited to the creditor’s account only within 2 months from the date of submission of the application to the Pension Fund. Thus, according to this scheme, the interests of the bank are violated.

The down payment itself was invented by the bank for the purpose of insurance and checking the solvency of buyers, to what extent they are able, given their level of income, to independently accumulate a large sum for the purchase of real estate. And given that virtually all credit institutions and lending organizations working with the population are now private, the state cannot directly tell them all the lending rules. And a certificate for maternity capital in the amount of 453 thousand rubles does not in itself guarantee the solvency of the family!

In addition, any credit institution indicates in its lending rules that it has the right to refuse to issue a loan without giving reasons - which banks successfully use by introducing restrictions on participation in the maternity capital program.

Therefore, unfortunately, the good intentions of the state in caring for families with children in this case have so far turned out to be practically not implemented in practice.