How to buy a house using maternity capital

What is maternity capital?

Maternal (family) capital is money allocated by the state in the Russian Federation to support families with children. It has been in effect since January 1, 2007.

I won’t go into the government’s legislative details. Let's get straight to the point.

What is the amount of support today?

From January 1, 2020, maternity capital can be obtained for the first born (or adopted) child in the amount of 466,617 rubles. At this point, it was indexed (increased) for the first time in the last 5 years - before that it was 453,026 rubles. That is, it increased by 13,591 rubles.

The maximum amount of maternity capital that can be received for two children is 616,617 rubles. If you received 466,617 for the first, for the second they will not give 616,617, as many people think, but only an additional payment of 150,000. ⠀ The same amount (616,617 rubles) is due for the third or subsequent child born (adopted) starting from January 1, 2020 years, if you have not previously taken advantage of government support.

For example, if the first two children were born before the introduction of maternity capital, that is, before January 1, 2007.

⠀ If the second child was born before 2020 and the family received a certificate for him, then, regardless of the year of use of state support, the amount will be calculated according to the old rules.

The maternity capital program will be extended until the end of 2026.

History of changes in the amount of maternity capital:

• 2007 – 250,000 rubles
• 2008 – 276,850 rubles
• 2009 – 312,162 rubles
• 2010 – 343,378 rubles
• 2011 – 365,698 rubles
• 2012 – 387,640 rubles
• 2013 – 408,960 rubles
• 2014 – 429,408 rubles
• 2015-19 – 453,026 rubles
• 2020 – 466,617 rubles for the first + 150,000 rubles for the second child

It was decided that the size of mat capital will be indexed annually from this year. Supposedly:

• in 2021, the payment for the first child will be 485,282 rubles and 641,282 for two;
• in 2022 - 504,693 and 666,933;
• in 2023 - 524,881 and 693,610, respectively.

Procedure for purchasing housing

At this stage, a purchase and sale agreement is drawn up directly with the seller or through a real estate agency. The certificate must be prepared in 3 copies:

• For the seller;
• For the buyer;
• For the Pension Fund.

Before buying a house, you need to find out about the owner of the land on which this house is located, and how to do this, read here.

The document must contain:

• Location of the house;
• Functional affiliation;
• Full specifications;
• Property value;
• Repayment periods or final settlement date.

Also during signing it is important:

• Inspect the owner's registration documents;
• Find out about the absence of encumbrances, since this option is not acceptable.

Required documents to obtain a certificate.

Also, depending on the method of payment, you must contact:

• To the Pension Fund of Russia, if payment will be made in installments;
• To Rosreestr, if the contract does not contain a clause on the transfer of property into the ownership of the family immediately after payment of the amount.

An application is submitted to the Pension Fund for the direction of maternity capital after the formation of an agreement with the seller:

• If there is an installment plan clause;
• After registering the transaction with Rosreestr, the buyer is already the owner of the property.

Approval by the Pension Fund

After registration of all documents by the owner of the property with the territorial authorities, the document is approved by the Pension Fund. The whole procedure is quite lengthy and the seller will receive his amount only after 2 months, but the buyer must receive the commission’s decision after 5 working days from the date of submission of documents.

Other ways to complete a transaction

A house can be purchased not only under the main purchase and sale agreement; there are several other options.

Using a loan agreement until the child’s 3rd birthday

If maternity capital is used to repay the first installment or to pay the balance of the loan, the purchase and sale agreement is drawn up in a standard manner without introducing any additional clauses. Important: in case of collateral, you must have a mortgage agreement registered with Rosreestr.

The peculiarity of this option lies in the fulfillment of the obligation - registration of the house as the common property of the whole family within six months:

• After removing the encumbrance on the property;
• After the Pension Fund transfers money to the banking structure.

Application of an agreement to donate part of a house to children

Important: starting from 2020, all transactions involving the alienation of property as a result of a gift must be endorsed by a notary. The law does not provide for the size of the legal share of children, so the owner of the property - the holder of the certificate has the right to determine the size of the shares himself, or if the property is divided between spouses, each of them can give a share from his part to the children.

The gift agreement can be drawn up in any form, but it must contain the necessary clauses. Such a transaction is a civil transaction for the transfer of property for free use by children.

What you need to have when buying a house with maternity capital, watch in this video:

Important: every child born before submitting an application to the Pension Fund to use the money under the certificate must receive a share.

Required Documentation

To be able to use maternity capital, you will have to collect a hefty package of documents:

• Identity card – original and copy;
• Application in writing from the buyer
• A copy of the document confirming the process of the purchase and sale transaction;
• A copy of birth certificates of all family members;
• Certificate as the right to use funds;
• Purchase and sale agreement as evidence of receipt of property by all family members;
• Certificate of the amount paid;
• TIN - copy and original;
• Pension certificate;
• A certificate certified by a notary regarding the transaction;
• Registration certificate;
• Document confirming payment of state duty;
• Cadastral documentation;
• Consent of all members of the seller’s family to sell the property;
• Certificate from the BTI on the value of real estate.

How to sell an apartment if the share belongs to a minor, read more here.

How to use maternity capital?

In 2020, maternity capital can be spent on:

1. Improving living conditions. This is the most popular way to use government support. What does this include?

• apartment purchase
• construction or reconstruction of an individual housing construction project (IHC) - a residential building (with or without the help of a construction organization), compensation of costs
• payment of a down payment when obtaining a loan (including a mortgage) for the purchase or construction of housing
• repayment of the principal debt or payment of interest on loans (mortgages) and loans for the purchase or construction of housing
• payment under the agreement for participation in shared construction
• payment towards payment of the entrance (or share) contribution for a participant in a housing (housing-construction or housing-savings) cooperative

You will be provided with qualified assistance in purchasing an apartment here.

Until the child reaches 3 years of age, mat capital can only be spent on paying off the mortgage or making a down payment. If the child is over 3 years old, you can pay with maternity capital directly to the seller of the apartment, indicating in the purchase and sale agreement (SPA) the terms of payment using MK.

However, not all sellers (mostly of secondary housing) agree to this type of payment, since the Pension Fund sometimes takes more than a month to transfer funds.

2. For the education of children. You can pay:

• educational services (programs)
• maintaining a child (children) or supervising (care) for a child (children) in an organization
• use of living quarters and utilities in a dormitory provided by the organization for the period of study

3. For mom’s funded pension.

Women who initially chose this option of using maternity capital funds can subsequently (before receiving a pension) use government support differently (improve living conditions, pay for their child’s education, etc.).

To do this, you will need to send a corresponding application to the territorial branch of the Pension Fund of the Russian Federation.

4. For the social adaptation of disabled children.

5. For a monthly payment upon the birth or adoption of a second child in the family.

Payments from maternity capital funds have been established since January 1, 2018 for low-income families in which a second child was born (or adopted).

Payments in the amount of the child's subsistence level in the family's region of residence are made monthly until the child reaches 3 years of age.

Buying a home with maternity capital - how to avoid being scammed?

1. If you are not confident in your abilities, then it is better to entrust the transaction to a specialist (lawyer or realtor).
2. In the case of borrowed funds, the bank checks the legal purity of the transaction, but it may not pay attention to some of the nuances that are important for the Pension Fund of the Russian Federation.
3. Directing maternity capital funds for purposes not specified in the law is prohibited.
4. There is a legislative ban on microfinance organizations participating in the transaction.
5. When purchasing housing that was purchased using MK funds, you should check the legal purity of the transaction. In practice, unscrupulous persons manage not to allocate shares to children. Selling such real estate would be illegal.
6. Before making a purchase, carefully study the documentation provided by the seller for the house. If there is any uncertainty, you need to contact a specialist or refuse the transaction.

See also: Establishing paternity in court - step-by-step instructions

Will they give maternity capital to the father?

The father can also receive maternity capital, despite the fact that, usually, the certificate is issued to the mother of the born (adopted) child. After all, capital is also family capital. However, there are cases when state support is issued to the father or even to the child himself.

The father receives a certificate if:

• He is the only adoptive parent of the second child (and subsequent children) and a citizen of the Russian Federation;
• The child's mother has died or she has been deprived of parental rights.

How to apply for maternity capital?

To obtain a maternity capital certificate, you can submit an application to:

• multifunctional center for state and municipal services (MFC);
• branch of the Pension Fund of the Russian Federation at the place of registration (documents can be sent by mail);
• through the government service website and the pension fund website (electronic application).

There is no time limit for applying for a maternity capital certificate.

You can dispose of mat capital funds (in full or in part) after three years from the date of birth (adoption) of the child.

Capital can be used at any time after the birth (adoption of a child) for:

• payment of the down payment on a housing loan (loan);
• payment of principal and interest on a loan for the purchase or construction of housing;
• payment for kindergarten;
• purchase of goods and services for the social adaptation of a disabled child (or monthly payment).

If the maternity capital certificate is lost, you can get a duplicate of it at the Pension Fund branch.

Buying a house with maternity capital: procedure

Step-by-step instructions for purchasing a house using maternity capital.

See also: Agreement on the payment of alimony - a sample alimony agreement between spouses

Obtaining a certificate for maternal capital

The certificate is issued by the country's Pension Fund. To obtain an MK, you must provide the following documents:

1. application for issuance of a certificate;
2. document of a citizen of the country;
3. metrics about the birth of all children;
4. insurance pension certificate (“green card”);
5. court decision on adoption.

Documentation is submitted to:

• Multifunctional Center;
• Pension fund, if there is no MFC in your area of ​​residence.

Methods for submitting papers:

• Personally. The application is filled out on site according to the sample. An MFC or PF employee issues a receipt for receipt of papers. It indicates the date of submission of the documentation and the person receiving it.
• Via postal service. The papers are first certified by a notary office. Documentation is sent by registered mail with notification. The returned counterfoil indicates the date of receipt and the details of the person who accepted the letter.
• Through the State Services portal. Papers for consideration are sent in scanned form. On the designated date, the person must appear with original documents.

Important: the application for a certificate is reviewed by the Pension Fund within a month.

Property search

You can purchase real estate on both the primary and secondary markets. The advantage in the first case is obtaining new real estate. If the purchase is planned for your own funds with the involvement of maternal capital, then the Pension Fund of the Russian Federation will approve the transaction only if certain conditions are met (permanent registration, the possibility of year-round residence, communications, etc.).

If the acquisition is carried out at the expense of maternity capital and borrowed funds, then the bank will be willing to make a deal if the house is being built turnkey. Preference is given to companies that have been in the construction market for a long time and have positive experience.

Purchasing housing on the secondary market is in great demand. This is due to the fact that the purchase is made of a ready-made building into which you can move in. If the house meets the conditions set by the Pension Fund of the Russian Federation and is not an unauthorized construction, then there are no obstacles to concluding a transaction.

Registration of ownership

The purchase of a house must be carried out simultaneously with the purchase of land. Another option is to formalize a land lease or receive it by inheritance (as a gift, etc.). In any case, the land plot must belong to the owner of the building located on it.

After purchasing or receiving a land plot for other reasons, it is necessary to register the transfer of rights. To do this, you should contact Rosreestr or a multifunctional center. An application can be submitted:

• Personally or through a representative by contacting government agencies.
• By sending the documentation and application by registered mail with notification (the period begins to run from the date of acceptance of the documentation).
• By sending through the public services portal with an electronic signature.

The following papers will be required:

• Passports of the seller and buyer.
• Power of attorney, if the applicant acts through a representative.
• Notarized consent of the other half, if the property is in common family ownership.
• Authorization of guardianship for the sale of property of a minor or incompetent person.
• Refusals of persons having a pre-emptive right to purchase a plot or house.
• Cadastral documentation for the land plot.
• Cadastral documents for buildings located on the territory.
• The document on the basis of which the property came into the ownership of the seller (will, bill of sale, etc.).
• The document on the basis of which the land plot was obtained.
• Certificate from the tax service confirming that there are no tax debts.
• An extract from the house register about registered persons in a residential building, if the plot is sold together with the house.
• Information about the absence of debt on utility bills.
• Extract from the register of ownership of land and buildings.
• Document on the transfer of land and house.
• Paid fee for state registration.

See also: Agreement on the division of marital property + sample

Along with the documentation, an application is submitted requesting registration of ownership rights to the land and house. In return for accepted documents, a receipt is issued indicating the date of acceptance, a list of accepted papers, and the details of the accepting specialist.

Registration is carried out within a period not exceeding 7 days. In confirmation of the registered right, an extract is issued, which contains up-to-date information: registration date, owner, property address and other important information.

Collection of documents and appeal to the Pension Fund of the Russian Federation

The decision to transfer funds from Maternity Capital is made by the Pension Fund of the Russian Federation. The following documents must be provided to the Pension Fund:

1. certificate holder statement;
2. pension certificate;
3. certificate for MK;
4. passport of a citizen of the country;
5. birth metrics;
6. a notarized obligation to allocate a share to each family member in the purchased real estate;
7. certificate of the outstanding portion of the purchase;
8. document on the conclusion or dissolution of a marriage union;
9. a certificate from the bank with current account details.

The application is reviewed within a month, and within the next month the funds are transferred to the bank account of the seller or bank if a housing loan was taken out.

Receiving money and completing a transaction

In case of a positive decision of the Pension Fund of the Russian Federation, funds:

• are transferred to the seller if the purchase was made with one’s own funds;
• to the bank if the capital was used as a down payment or was used to repay the debt.

The purchased house is registered in shares for all family members. The procedure takes 6 months from the date of transfer of funds to the bank account of the seller or bank.