Mortgage without down payment for a young family

Where can newlyweds get a mortgage?

A mortgage is not issued without a down payment. Usually it is 15 or 20 percent of the cost of the apartment. That is, it amounts to a fairly decent amount. And without it, not a single bank will issue you a mortgage loan. The only exception here can be a real estate pledge. To give an idea of ​​a mortgage loan, lending options are presented in one of the most popular banks in Russia - Sberbank.

If you compare mortgage programs with other banks, you will notice that Sberbank is not always the best offer:

• Tinkoff Bank provides an interest rate of 9.25% per annum;
• VTB provides an interest rate of 9.1% per annum;
• Rosselkhozbank provides its clients with 9.45% per annum;
• Gazprombank - 9.5% per annum.

All other banks offer unfavorable loan rates. This is due to the fact that to approve a loan in such a bank, fewer conditions must be met than in a reputable bank. They issue a cash loan more easily, but they want to make more profit from it.

Based on this table, you can see that due to its popularity and demand, Sberbank does not charge the lowest interest rates, thereby receiving more profit from its many clients. In addition, to obtain a mortgage, you must pay for an insurance policy from Sberbank, which is required when purchasing an apartment.

Mortgage conditions for a young family with zero down payment

A family is considered young if each member is no more than 35 years old .
Such families can take advantage of the special Federal program “Providing Housing for Young Families.” To take advantage of the mortgage program with state support without a down payment, you must get on the waiting list to improve your living conditions. This is the main condition. Such families are issued a certificate to receive a subsidy, the amount of which depends on the cost of a square meter in the region and will cost 48 square meters. meters for a family without children plus 18 sq. meters for each child. This money will pay off the down payment. The program involves the state paying 35% of the cost of an apartment for a family without children, plus 5% for each child. The remaining amount can be repaid using funds borrowed from any commercial bank that provides loans to young married couples.

If you are young and married, then there are special lending programs provided by commercial banks for your young family. You can get a mortgage using the “Young Family” program implemented by Sberbank. Although the program requires payment of a down payment, which is 10% of the total cost of the apartment for married couples with children, and 15% for childless families , however, the interest rates are lower. The program also provides the opportunity to defer payments indefinitely in the event of the birth of a child. The state program is certainly more profitable for a young married couple.

In addition, there are special programs that provide preferential mortgage terms without a down payment for young people who work in the field of education as teachers and serve in the army.

In what cases can you get a mortgage loan without a down payment?

1. A collateral can be used as a down payment amount; real estate, such as an apartment, a mansion, or just a plot of land and even a car, can be used as collateral for a loan agreement.
2. It is allowed to use additional credit funds; this is a special loan for making a down payment.
3. You can use maternity capital. A number of banks can accept a certificate for maternal capital as a down payment, which is issued as soon as a child is born or adopted into the family.
4. Banks offer preferential loans. Such a mortgage is issued for the holder of a certificate confirming the right to receive a subsidy.
5. Special programs supporting young married couples, young teachers, and military personnel. VTB Bank offers favorable conditions for mortgages.
6. The developer can provide an installment plan, which differs from a mortgage in that the bank is not involved in the transaction, the developer does not require a down payment, a checkpoint, you do not need to provide a certificate of solvency, but usually, the installment plan has a short payment period, is not always interest-free, ownership of the apartment issued after completion of construction work.

Preferential mortgages to support young families in 2020

Since newlyweds are low-income during the first years of their marriage, and many of them already have children, preferential programs have been developed to help young families and families with children in the first year of marriage.

To use this program, you must meet the following conditions:

• Both spouses must have a Russian citizen passport;
• The same registration in the region in which the mortgage loan will be taken out;
• The area at the place of registration should not exceed 12 meters per person;
• If there is a child born in the first year of marriage, the area per person should not exceed 9 meters per person.
• The length of service of one of the spouses at the current place of work must not be less than 1 year.

The bottom line is that if there is no child in the first year of marriage, then if all conditions are met, then after collecting the necessary documents, a preferential mortgage with a reduced interest rate is provided. The table below shows the preferential programs of the most popular and sought-after banks.

As can be seen from the table, preferential mortgages have a 5 percent higher down payment. Despite this, such programs are popular and are in great demand among newlyweds. In addition, if you have a child in the first year of marriage, and all conditions for participation in the program are met, in addition to a preferential mortgage, you can qualify for 370 thousand rubles, which can be paid towards the down payment.

Important! The preferential mortgage rate for newlyweds is valid for 5 years. At this time, the bank itself compensates for the missing interest. After the grace period expires, the interest rate increases to 9 percent or higher.

Features of a mortgage loan without a down payment

There is an alternative option, which is not used so often, perhaps due to the fact that it requires temporary resources. Its essence is that you first need to create a positive credit history in one or more banks. This will allow you to subsequently obtain the most favorable mortgage loan for a young family.

The needs of a young family are great, and periodically they have to use loans. Gradually, the loan amount increases, and with timely repayment, the borrower earns a positive reputation. From the bank's point of view, this means a reduction in risk when lending, and after a little checking, you can count on improved credit conditions. True, it will take at least a year to repay debts exactly according to schedule.

A mortgage for a young family without a down payment has many advantages

• First of all, there is a psychological aspect: young families with their own housing contribute much less to the divorce statistics.
• In a rented apartment there is always the threat of eviction (especially after the birth of a child), and paying rent will never make the apartment your own.
• In your own apartment, the feeling of home makes it easier to endure stressful situations; your own walls help you improve your everyday life and build harmonious relationships.
• At a young age (after adulthood), the mortgage repayment period can be maximum (up to 30 years).
• Loan offers and special programs with government assistance have been developed for young families. If desired, such families can obtain a mortgage without a down payment.
• Mortgage interest rates (even without government assistance) are quite affordable. If you analyze all the offers, you can find a mortgage loan at 10 - 12%, although 15% is considered normal conditions. If you have any doubts about how to get a mortgage for a young family without a down payment, you can use the services of an experienced credit broker to choose the appropriate option.

When choosing any loan, expenses are inevitable:

• payment for the services of an appraiser of the value of the selected housing;
• notary services (up to 5% of the transaction cost);
• insurance of the apartment - collateral, life of the borrower and guarantors (if any);
• tax payments;
• bank commissions: processing and maintenance of a loan, opening a current account;
• collecting certificates from utility services (theoretically they are free, in fact you have to pay extra for urgency);
• inevitable expenses associated with moving to a new apartment.

After all the calculations, we can come to the conclusion that a mortgage without a down payment is the only way out for a young family without additional income, because the need to subtract 10 - 20% of the cost of the chosen home can be the main obstacle.

Social mortgage for newlyweds in 2020

Social mortgage is government assistance to families who need to improve their living conditions . If we consider it in relation to conventional lending, then this is a regular mortgage, with the state paying a partial amount of the loan. The amount provided by the state depends primarily on the presence of children. If they are not there, then he provides an amount reaching 500 thousand rubles.

If a family has 1 or 2 children, then the amount of state assistance for the purchase of new housing can be up to 800 thousand rubles. There is a waiting list for participation in such a program, which reaches the borrower, on average, 2-3 years after submitting documents. Afterwards, the funds received are credited to the account and you can take out a social mortgage.

According to a specialist in the field of social lending, in our time it is not easy for young families to buy an apartment with their own money, but they have every chance of getting it on a mortgage at minimal cost. Here the state took care of them. If you calculate the amount of government Support and maternity capital, you can easily cover half the cost of a decent two-room apartment. This is a program that exists for a reason! And it's worth using.

Senior Manager of Sberbank PJSC D.V. Zotkin

Banking programs

Along with this, many banks are developing a number of their own mortgage lending programs for young families. The main difference between banking programs and government programs is that the state provides free subsidized support to young families if this unit of society is recognized as in need of improved housing conditions. And banks can only offer mortgage lending to young families on preferential terms:

• - no down payment,
• - minimum down payment,
• — deferment of monthly payments without penalties,
• - other benefits

Necessary documents to obtain a mortgage

When everything has been seriously thought out and thought through, all that remains is to collect the documents for the bank to provide a housing loan. In the case of social mortgages and mortgages with state support for young families, the documents may differ.

So, in order to take advantage of a social mortgage, you need to collect the following documents:

• Application for assistance;
• Documents for registration of new registration in the purchased house;
• Certificate;
• An open bank account for the bank to transfer funds;
• Passport;
• SNILS;
• TIN;
• Employment history;
• Documents confirming participation in the program for lack of living space.

Documents for such a mortgage are collected after your turn in the program. After which the housing certificate is used and housing is purchased.

For a preferential mortgage with support for young families, you must provide the following documents for registration:

• Passport;
• SNILS;
• TIN;
• 2 personal income tax;
• Work record book indicating current place of work and length of service;
• Birth certificates of children;
• Marriage certificate.

After submitting the documents, the bank reviews them for issuing a mortgage loan within 2 weeks. If, after consideration, he is ready to issue funds, then the borrower is given 2 to 3 months to search for the apartment to be purchased and prepare the necessary documents. If it is not possible to meet the deadline, then the consideration of the mortgage begins from the very beginning.

Loan terms

Family requirements

The main mortgage loan requirements

• mandatory presence of an official place of work. In this case, the total family income must exceed the monthly mortgage payment at least twice;
• one of the spouses must have at least 6 months of work experience at the current place of work;
• having a permanent place of residence for a certain period in the region where the acquisition of residential real estate takes place. Here, it is enough to have the necessary residence time of one of the parents. The term depends on the specific bank, since it is different in each;
• the combined age of the spouses should not exceed 70 years. In simple words, the maximum age of each spouse should not be more than 35 years.

At the same time, it is necessary to remember one more nuance: if a spouse needs to undergo military service in the army during mortgage lending, it is necessary to prove to the bank the fact that that income will be enough for monthly payments without the occurrence of delays.

Housing requirements

When contacting a banking institution, you must remember that the purchased housing is subject to requirements , which are as follows:

• real estate must be economy class;
• for a family of 2 people – the maximum area of ​​the property should not exceed 42 square meters. meters. If the family consists of more than 2 people - 18 sq. meters is allocated for each;
• the property must be completely in technically sound condition and meet sanitary requirements;
• if we are talking about buying a house with a mortgage, then the construction must be carried out exclusively by a construction company, and all technical requirements in accordance with the laws of the Russian Federation are taken into account in full;
• the property must be located exclusively in the region where the young family lives.

Interest rates

The most relevant option for obtaining a mortgage loan is to participate in any program provided by banks for young families.

If we talk in more detail about the interest rates on banks of the Russian Federation, they are as follows:

• in Sberbank – about 10.7%;
• Bank of Moscow – from 11.7%;
• Absolut Bank – 11.5%;
• Tinkoff Bank – from 10.45%;
• VTB – from 11.4%;
• GazpromBank - ranging from 11 to 14%.

The annual interest rate may vary depending on your income level, the presence of children, the desire to take out an insurance policy, and so on.

State project program “Young Family”

This opportunity is the most popular way to get preferential loans.

Basic requirements for participation:

1. The age limit for each individual person of a married couple is up to 35 years. Valid for single parents with minor children.
2. The need to improve living conditions for each person in the family has been established and documented. For each family member there is a living space less than the established sanitary standards.

The essence of the program is the payment of subsidies exclusively for the improvement of accommodation; it can be used for:

• partial settlement in the implementation of a real estate purchase and sale transaction;
• financing the construction process in the individual housing sector;
• making the last payment when participating in a housing construction cooperative;
• depositing funds as a means of paying the first payment;
• repayment of the mortgage obligation, but only the net amount without fines and penalties.

To obtain a certificate, the following steps are taken to comply with project standards:

1. Provide documents confirming the identity of each individual member of the family society.
2. A document evidencing marriage.
3. A document confirming the need to increase living space.
4. Extracts from the house register.
5. Confirmation of the availability of financial resources for the purchase of housing (account statement, letter from the bank granting a loan, etc.).
6. Documents for ownership of residential premises, which the young family already has, and a preliminary written agreement on its sale.

Participation in the state program

A young family has every right to take part in the state. program , thanks to which the state provides a subsidy in the amount of 35% of the cost of real estate.
However, for this you must meet certain conditions :

• a young family has a stable income;
• the family must need to improve their living conditions - availability of the appropriate document;
• a young family has lived in the same region for at least 10 years. Their age is no more than 35 years (each).

It is worth noting that for each child in the family the amount of assistance increases by 5%. For example, if there is 1 child in a family - assistance in the amount of 40%, 2 children - 45%, and so on.

In order to take part, you must contact your local government and obtain the appropriate certificate . With this certificate, you can then contact any bank that provides a mortgage under such a program and attach this document to the others. The further registration procedure is standard.

Banking services as part of the implementation of the state program

The list of banks can be found on the official website of the Young Family program. Depending on the regions, participating banks vary.

Conditions for providing loans to young families at Sberbank:

1. One of the spouses must not be under 35 years of age.
2. The interest rate depending on the region of circulation will range from 11.5 to 13.25%.
3. The loan has a standard duration of 30 years.
4. The down payment will be 10% if there are children in the family who have not reached the age of majority, 15% if there are none.
5. If a child appears during the loan term, the bank provides a deferment.

The best way to get a mortgage for a young family must be decided after consultations with specialists.

Of course, every young family strives to obtain a mortgage without a down payment. Such options are possible. They are available for young families with children, this is the first option.