Building your own private home requires significant financial investments. If you don't have enough cash, you may have to take advantage of bank mortgage lending offers.
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And one of these banks offering a loan to build a house is Rosselkhozbank.
Conditions
For the purpose of building a house, you can also take out a consumer loan - the main thing is that it is non-targeted.
But still, due to the specifics of the event, it is recommended to use mortgage lending, because it:
- provided for much longer periods;
- issued at a fairly favorable interest rate;
- involves the provision of significant amounts.
Rosselkhozbank has an offer - “Mortgage housing lending”, within the framework of which, among other things, you can take out borrowed funds:
- for the acquisition of a real estate property, the construction of which is not completed, with a plot of land, and the subsequent completion of construction work;
- for the construction of a house on a plot of land owned;
- for the construction of a house on a rented plot.
The conditions are as follows:
- currency – Russian rubles;
- minimum amount – 100,000 rubles;
- maximum loan size – 20,000,000 rubles;
- term – up to 30 years;
- down payment – from 15%;
- There is no commission fee for issuing a construction loan;
- security – pledge of a constructed/later completed property;
- co-borrowers - up to 3 individuals, including those who are not relatives of the borrower, the spouse is required to be a co-borrower;
- the application will be reviewed within 5 days;
- The bank’s decision to issue a loan is valid for 3 months;
- insurance: compulsory – in relation to real estate;
- optional – regarding the risks of the borrower passing away or losing his ability to work.
There are the following nuances when registering:
- the maximum amount of a housing loan, in addition to the financial capabilities of the borrower, is determined based on the estimated cost;
- the estimated cost is drawn up for all stages of construction;
- the borrower has the right to carry out construction both on its own and through the involvement of contractors.
Who can receive
Any citizen of the Russian Federation who has reached the age of 21 can receive it. In this case, it is necessary that the full repayment of obligations to the bank occurs before the borrower turns 65 years old.
It is also necessary that these conditions be met:
| citizenship | RF |
| registration | RF |
| experience | from 6 months at current job and from 1 year total |
If a client receives a salary on a Rosselkhozbank card, then other requirements for length of service apply:
| at the current location | from 3 months |
| total experience | from six months |
If a citizen runs a private household plot, then the following is required:
- carrying out relevant activities for at least 1 year before the date of submission of the loan application.
In addition, a construction loan can be obtained by:
- persons with maternity capital;
- young families.
For persons with maternal capital, preferential conditions will apply:
- down payment – from 10%;
- possibility of repaying the first installment using maternal capital.
If the borrower is a member of a young family (a family in which at least one member is not yet 35 years old), then:
- the first payment will be only 10%;
- It will be possible to take advantage of a deferment in payment of the principal debt (you will only need to pay interest): for the period of construction of a private house (deferment period - up to 3 years);
- at the birth of children before they reach 3 years of age.
How to apply for a mortgage with maternity capital in Rosselkhozbank is described in the article: mortgage with maternity capital in Rosselkhozbank. Military mortgages at Gazprombank are discussed on this page.
Rates and requirements
What mortgage requirements apply:
- The client's age is from 21 to 65 years at the time of payment.
- A person must have Russian citizenship.
- Work experience in the last position for at least six months.
- Availability of registration on the territory of the Russian Federation.
Interest rates may vary. The minimum parameter is 9.75-12%. But note that this is the lower bar. The actual figure may be higher than expected, it all depends on the specific situation and surrounding circumstances.
What factors influence the rate:
- Having a positive credit history.
- You receive your salary into an account at the Russian Agricultural Bank.
- You work in a budget organization.
- If you refuse to take out insurance, +1 percent will be charged.
- Current income level.
- Selected payment term.
- Loan amount.
- Additional factors that may affect the rate.
Employees carry out calculations using developed algorithms. If your application is approved, you will be able to find out the specific parameter. All possible factors are taken into account to achieve maximum accuracy.
What documents will be required?
- Passport.
- Official proof of income.
- For men under 27 years old - military ID.
- Marriage and birth certificates may be required.
- It is worth preparing a work book; specialists often request it to check their work experience.
- Documents for the object for which the loan is issued.
It is important to carefully study all the parameters and prepare the papers. The likelihood of a positive decision on the application will directly depend on this. When reviewing a request, employees take into account all possible parameters.
The procedure for obtaining a mortgage for the construction of a residential building at Rosselkhozbank
Mortgage lending for the construction of a house at Rosselkhozbank can be provided if the client performs a number of actions:
- clarification of the parameters of the desired loan, familiarization with the requirements for the borrower and the list of necessary documentation;
- visit the nearest office or submit an electronic application;
- provision of a package of documents for the client;
- waiting for bank approval;
- collection and preparation of documentation for the property (estimate, cadastral passport for the land plot, building permit, etc.);
- conclusion of a mortgage agreement;
- construction of the facility;
- upon completion of construction, registration of ownership and provision of a certificate to the bank to reduce the interest rate by 0.5%.
Possible lending options
Not all banks provide the programs described below, but consumer loans and collateral systems are the most popular.
Also, the use of maternity capital to repay a previously opened mortgage is prescribed by law, so the bank cannot refuse if a woman has applied for such a procedure.
Consumer loan
If you think that building a house will not require a lot of money, or you do not have enough of a certain amount of your own savings, then the best solution would be to take out a consumer loan.
The advantages of this type of mortgage for home construction are reduced interest rates and a simplified issuance procedure.
To the detriment of this, money is issued only for a short period ( from 12 months to 5 years ), but it is not difficult to pay off the debt within such a time.
Banks are more willing to issue consumer loans than targeted loans.
And for clients, there is the opportunity to calculate monthly payments online, as well as submit applications online to save their own time.
It is also easier to pay off debt on a consumer loan than on a conventional mortgage, because banks do not charge additional fees for early repayment.
Video on the topic:
The most important thing is that, unlike a consumer loan, the property is not taken as collateral, which means there is no risk.
Also, guarantors are not needed, and as a result, such a mortgage is issued very quickly.
Mortgage secured
The existing practice of executing a mortgage agreement secured by one’s own real estate becomes somewhat more complicated if the object of collateral is the land plot on which it is planned to build a house.
In this case, both the land and future construction on it will be bank guarantees.
A prerequisite is that the site is already owned by the client, which must be confirmed by certain documents.
No matter how attractive this type of mortgage is for clients, banks are reluctant to give loans secured by land.
The procedure is complicated by the need for an additional assessment of the land plot, which takes into account its location, the possibility of providing amenities and checking whether it belongs to legally protected areas where construction is prohibited.
The bank also takes into account the risks of land depreciation in a few years, and whether the plot will be able to recoup the amount of debt if the borrower does not repay the loan.
The loan term in most cases is quite short - about 3 years to build a house, and depending on the cost of future housing, a few more years to finally pay off the mortgage debt.
Basically, we can say that the chance of getting a loan secured by land is quite small, but if the assessed value of the land plot is high, then the opportunity increases.
Banks are willing to issue a mortgage for the construction of a house only if the borrower’s land is located in a prestigious cottage village or if its value is expected to increase, capable of covering the amount of the debt.
Read about how to properly purchase a cottage with a mortgage here.
Standard mortgage
With a standard mortgage for building a house, it is assumed that the client already owns the necessary land plot, and he only needs capital for construction.
The future home itself, and not the land, acts as collateral and a bank guarantee.
Many banks offer this type of mortgage lending; you just need to determine the conditions under which you want to get a mortgage.
A prerequisite is to insure the future home against accidents. This responsibility rests with the developer or client.
This gives the bank additional guarantees for proper development and repayment of mortgage debt.
Mortgage and maternity capital
A new program from the state, called maternal or family capital, appeared in 2007.
It consists of depositing money into the mother’s account at the birth of a child, but this money, as a rule, cannot be used until the child is 3 years old, and in general it can only be spent on certain needs.
One of the options for investing maternity capital would be to use it to open or pay off a mortgage for building a house, because many young families dream of their own housing, built according to their own design.
Required documents
The following client documents are required:
- statement;
- general passport;
- military ID - for males who have not yet turned 27 years old;
- documents proving the existence of a family (marriage/divorce certificate);
- documents proving the presence of children (birth certificate);
- documentation confirming the implementation of labor activity (copy of the work book);
- documents confirming income (2-NDFL or according to the Rosselkhozbank form).
It is necessary to provide documentation on the property:
- certificate of state registration of property rights to the land plot on which construction will take place;
- document providing the basis for the emergence of ownership of a plot of land;
- extract from the Unified State Register in relation to a plot of land;
- cadastral passport;
- an estimate drawn up and certified by the contractor or the borrower himself;
- permission from the local administration for construction;
- contract (if construction is carried out by a contractor).
Rural mortgage at Rosselkhozbank
This mortgage program has one key condition - the property being purchased must be located in rural areas. These are lands with a certain status:
- rural settlements: towns, villages, hamlets;
- inter-settlement territories + rural settlements within the boundaries of one district;
- rural settlements and workers' settlements within the city boundaries.
In other words, the territory on which the property is located must be officially assigned rural status. In practice, these are not only villages and towns in the classical sense, but also nearby suburbs, and sometimes even an area located inside the city (private sector). The status of the land is determined by the local administration.
On the official website, Rosselkhozbank notes that rural mortgages are not issued for the territories of Moscow, the region and St. Petersburg. In the Leningrad region, rural mortgages are available.
Requirements for the subject of the contract
Rosselkhozbank puts forward the following requirements for the subject of the agreement:
- compulsory property insurance against the risks of total loss or damage;
- requirement to compulsorily estimate expenses and provide relevant documents to the bank;
- the plot must be owned by the borrower or leased;
- in the case of a lease, its term must exceed the mortgage period;
- all documentation must undergo state registration with the relevant authorities;
- The subject of lending can be: either the construction of a house “from scratch” using loan funds;
- or the acquisition of an unfinished construction project together with a plot of land and completion of the corresponding construction work.
Rosselkhozbank is one of many organizations where you can get a housing loan not only for the purchase of an apartment, but also for the construction of a house on a rented or owned plot of land.
The loan is available to any individual who meets banking requirements and has an acceptable level of income to service the requested loan.
You can find the terms of a mortgage in VTB 24 in the article: VTB mortgage. Find out how much a mortgage on an apartment with a mortgage from Sberbank costs here.
What documents are needed for a mortgage at Sberbank, read this article.
