This year the amount of maternity capital has been increased. At the birth of their first child, the state transfers 466 thousand rubles to young parents. And if a second baby was born in 2020, then the amount of maternity capital increases to 616 thousand rubles. This is a lot of money, so the question of what to spend maternity capital on should be considered carefully. A lawyer and family dispute mediator will help you answer this question. Yuri Kapshtyk.
Where to use maternity capital
It is a mistake to perceive these funds as an allowance that can be spent at your own discretion. The state views the program as a way to improve the living conditions of young families, as well as offset education costs. Therefore, money can only be spent on a limited range of tasks, but it’s up to the parents to decide what exactly.
Buying an apartment, a house. Most families use the funds to purchase spacious housing. When children are born, additional square meters are needed, and the state payment allows you to purchase a larger apartment or house without spending your own money on it. You can buy a home after the child’s third birthday, at whose birth a certificate was received. This rule does not apply to housing purchased on credit: you can pay off the mortgage or make a down payment on it even before the child is three years old, immediately after issuing the certificate.
Starting this year, maternity capital issued at the birth of a third child can only be used to pay off the mortgage.
For construction. The state allows targeted payments to be directed to the construction of a house, repair and reconstruction of existing housing. And even introduced relaxations in this area. If earlier construction was allowed only on plots for individual housing construction, now it is possible to build for budget money on garden plots. The main thing is that the land is owned and permission for work has been obtained. Construction and reconstruction of a house should be planned after the child’s third birthday. The money will not be given immediately: half of the amount will be given after submitting an application for payment, and the other half will be given six months later.
To pay for training. If a child attends a paid kindergarten, then up to the age of three, you can pay for the institution’s services using maternity capital. After this, the amount can continue to be spent on education, not only for the baby at whose birth the certificate was received, but also for other children. For example, pay for kindergarten for a younger child and university education for an older one.
For a subsidy. In 2020, maternity capital became a serious help to low-income families, who were able to receive a monthly amount in the amount of the subsistence minimum to support a child. All families whose income per person does not exceed two minimum wages in Russia (today - 12,130 rubles) can apply for the payment.
The law also allows the use of funds from the mother’s funded pension for the education and adaptation of disabled children.
Is it possible to buy a house (or part of it) using maternity capital?
Important! Before deciding on the issue of concessions, consult with a competent specialist who can tell you about the rights and how to properly invest this certificate in real estate.
Difficulties can arise only when purchasing housing that is still under construction or when participating in shared construction, since registration of ownership is possible only after the object is put into operation.
Reconstruction of housing requires a mandatory increase in the total area of living space by at least one accounting standard. Otherwise, the construction work (whether on your own or with the involvement of third parties) does not meet the requirements of the Pension Fund regarding the intended use of finances, and, as a result, will not be paid for by the state.
Since you will be required to provide documentary evidence of the fact of purchasing a new home, before visiting the guardianship authorities you need not only to find a suitable option for a new house or apartment, but also to draw up a preliminary sale agreement, certified by a notary.
Creating comfortable living conditions is possible through the purchase, reconstruction or construction of turnkey housing in a city or village. This is provided for by Government Decree No. 862 of December 12, 2007 “On the rules for allocating maternity capital funds to improve housing conditions.”
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If a family plans to use government assistance before the child reaches 3 years of age, they cannot do without taking out a mortgage loan to purchase real estate.
What is the best way to spend maternity capital in 2020?
Each family has different priorities and parents can, at their own discretion, manage the amount of maternity capital in the areas specified by the state. But there are the most profitable ways to use money.
“In my opinion, the most profitable way to spend maternity capital is to invest it in real estate,” comments lawyer and mediator for family disputes Yuri Kapshtyk. — This is the most established unit, a reliable investment. When you buy a home using maternity capital, you have a property asset that can be improved in the future by adding a certain amount.”
The amount of maternity capital is the same for all Russians and is determined only by the number of children in the family. But real estate prices in the regions are different. If for Moscow the amount of 600 thousand rubles will be only a tenth of the total cost of a spacious apartment, then in a small city this money can pay for half the cost of housing.
“There are no established requirements from the state for living space purchased for this money,” continues Yuri Kapshtyk. - This can be primary or secondary housing, a private house, even in dilapidated condition. If parents have the strength and desire to improve this house, complete it, create good living conditions for themselves and their children, this can be done.”
Conditions for purchasing a house using matkapital
When concluding a contract for the purchase of real estate using a mother’s certificate, the following conditions are taken into account:
- the cost of the house and the land plot must be stated separately, since the maternity capital program does not provide for the acquisition of land;
- the agreement should regulate the deadline for fulfilling obligations, since the procedure for transferring funds from the Pension Fund to the seller takes approximately two months;
- Until the transaction is paid for, the house is registered by agreement as collateral.
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The condition of the facility, the presence of all necessary communications and compliance with the norm of area units per person are the main aspects that the Pension Fund considers when making a decision.
How to spend maternity capital
Since 2020, at the birth of a child, the Pension Fund of the Russian Federation issues a certificate automatically. Mom does not need to submit documents; the registry office staff will do this. If PFR specialists have questions, they can call and ask for the missing document.
To receive payment you will need to collect the following documents:
- passport;
- child's birth document;
- statement on the disposal of funds indicating what the money will be spent on.
Starting this year, if you plan to spend funds on a mortgage, you do not need to contact the Pension Fund. Documents can be submitted to a bank that participates in the government program and issues a mortgage loan.
If parents want to receive funds from the account as a monthly subsidy, they will need a certificate from their place of employment for the last year and a certificate of income indicating personal income tax. The certificate must be provided by the parent for whom the certificate is issued, since this is a personal document. You can receive a monthly payment until the child’s third birthday, and the rest of the amount can be spent on housing or education for the children.
Which house is suitable for purchasing with maternity capital?
The rules for registering a house for maternity capital are regulated by Federal Law No. 256-FZ. According to this act, a certificate can be spent in this way under the following conditions:
- the purchased property improves the family’s living conditions;
- real estate is registered as shared ownership of each family member, including minor children;
- the child, with whose birth the family acquired maternity capital, has reached the age of three.
IMPORTANT! If a home purchase and sale transaction involves borrowed funds, it is not necessary to wait until the child is three years old. With a mortgage, a house can be purchased at any time.
Purchasing a built house
To buy a home with their own funds using maternal capital finance, a family needs to follow the following procedure:
- Find a property and agree on a deal with the seller.
- Draw up and conclude a purchase and sale agreement.
- Submit an application for registration of ownership rights to the property. To do this, you need to contact the Rosreestr office.
- Receive an extract from the Unified State Register of Real Estate.
- Submit an application for the transfer of certificate funds to the seller at the Pension Fund branch at the place of registration.
When using borrowed funds, the algorithm of actions changes. To complete a transaction, a citizen entitled to dispose of the money in the certificate must perform the following sequence of actions:
- Find a property.
- Draw up and conclude a mortgage lending agreement with a banking organization.
- Contact Rosreestr to register property.
- Submit an application for transfer of funds to the Pension Fund.
IMPORTANT! If the certificate is used to pay off an existing mortgage, in addition to the application to the Pension Fund, a home purchase agreement and payment receipts are provided.
Is it possible to buy a dacha
You cannot use maternity capital funds when buying a dacha. The restriction applies even if the family plans to live there permanently. To complete such a transaction, you need to change the status of your home.
A building is considered residential if it meets the following requirements:
- purpose of land - individual housing construction;
- the presence of a foundation and main walls;
- availability of communications (water, electricity, heating).
If the country house meets the specified requirements, then it can be re-registered in the Unified State Register of Real Estate as residential real estate and purchased using the mother’s certificate.
Requirements for a home to purchase
Which houses are suitable for maternity capital are indicated in Article 256-FZ. The list of requirements for a house based on maternity capital is as follows:
- location – within a populated area;
- status – capital structure;
- number of storeys - no more than three floors;
- completeness – completed building;
- wear – no more than 50%;
- compliance with housing standards - the absence of adjacent walls with other residential buildings, the presence of windows and communication systems.
IMPORTANT! Using the mother's certificate, you cannot purchase emergency or dilapidated housing.
How and with whom to coordinate the purchase of housing
Permission to use funds can be obtained from the Pension Fund office. To do this, the certificate holder needs to fill out an application and collect the following package of documents:
- statement;
- applicant's passport;
- passports of the husband and children (if under 14 years old - birth certificate);
- extract from the Unified State Register of Property Rights;
- an extract from the house register about the composition of the family.
The application is submitted in the following ways:
- personal appeal;
- by mail;
- through the MFC;
- online on the State Services Internet portal.
IMPORTANT! If the funds requested from the Pension Fund will be used to pay the down payment on the mortgage, an extract from the bank about the remaining debt is required.
Registration of real estate shares
It is prohibited to sell an apartment purchased with capital immediately after purchase; liability for such actions is stipulated by law.
The procedure for registering equal shares after purchasing real estate can be found out from the Pension Fund or from a notary. Fulfillment of this condition is mandatory within the framework of the law.
If you immediately include a definition of shares in the agreement, the registration process will be significantly simplified. Violations may be construed as criminal acts.
After purchasing a home, you cannot immediately sell the apartment. By court decision, housing may be subject to alienation in favor of the state.
Then, at best, you will have to return the money and redistribute the shares of residential property. In the worst case scenario, the process could end in prison.
Intentions to buy maternity capital, cash out funds or use them for other than legal purposes are criminal.
The family support program is controlled by the state, so funds must be used exclusively for purposes specified by law, including improving living conditions.
More details about maternity capital in the video:
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Discussion: 2 comments
- Ksenia says:
02/18/2017 at 04:03And I often see advertisements for “cash-out of maternity capital” - do they mean they are scammers? And I’m very interested in the condition that you can spend only part of the funds and leave the rest - is it possible to find out in more detail where and how the funds can be distributed? Because I gave birth to my second baby six months ago and now I’m thinking about how to spend my maternity capital. Mommies, please share information!
