Is it possible to take out a mortgage using maternity capital if the child is under 3 years old or pay off the mortgage for them without waiting for 3 years?

Using maternity capital to purchase housing for up to 3 years

After receiving a personal certificate, family capital can be used to purchase or build housing only to fulfill loan obligations to financial organizations (banks, credit cooperatives, etc.), or more precisely:

payment of the first installment on loans or borrowings (including mortgages);
repayment of principal;
repayment of interest on loans or borrowings.

The law does not limit the number of credits and loans for which maternity capital can be used, so certificate funds can be used to pay for several housing loans at the same time. However, it is necessary to understand that MSC cannot be used to pay off penalties and other penalties for late payments according to the payment schedule.

Documents for the purchase or construction of housing using maternal capital

The main list of documents required for the purchase (construction) of housing using mat funds. capital:

Application for disposal of maternity capital.
Certificate for family capital (its duplicate).
Applicant's identity card.
Documents confirming the place of residence (stay) of the certificate holder.
The applicant's pension insurance certificate (SNILS).
A marriage certificate must be additionally provided if one of the parties to the purchase and sale (construction) of housing transaction is the spouse of the certificate recipient or they carried out work on the construction or reconstruction of an individual housing construction project (IHC).
A notarized obligation to allocate shares in the residential premises to all family members.

Documents required when paying the first installment on a loan or loan issued for the purchase (construction) of housing:

A copy of the agreement (credit or loan) for the purchase or construction of housing.
A copy of a state-registered mortgage agreement, if such conclusion is required by the terms of the credit agreement (loan).

Documents for ordering MSC to repay the principal debt and interest on a loan or loan:

A copy of the loan agreement. If the certificate funds are used to repay the principal and interest on a credit (loan) received earlier, you must additionally provide a copy of this agreement.
A certificate from the lender (the person who provided the loan) about the balance of the principal debt and interest on the loan or loan.
A copy of the mortgage agreement that has passed state registration, if its conclusion is provided for in the loan agreement.
Extract from the Unified State Register of Real Estate.
If the individual housing construction project has not yet been put into operation, it is additionally necessary to provide a registered agreement for participation in shared construction or a copy of the permit for the construction of a private house.
If the credit or loan was taken to pay the entrance and (or) share fee to the cooperative - confirmation of membership in the cooperative of the recipient of the certificate or his spouse.
A document confirming the non-cash transfer of a loan to an account opened with a credit institution in the name of the MSC recipient or his spouse.

All copies of documents are provided to the Pension Fund , accompanied by originals , which will be returned to the applicant after verification.

Is it possible to use maternity capital for up to 3 years to buy an apartment?

It is allowed to use maternity capital to purchase an apartment or other housing without waiting three years from the birth (adoption) of a child when sending funds to pay off credits or borrowings .

To do this, the applicant must submit to the territorial body of the Pension Fund an application for the disposal of MSC funds and the necessary documents. This can be done in person, as well as through a legal representative or proxy (provided that additional identification documents and credentials are provided). Citizens living in the Russian Federation can submit an application for disposal and related documents through a branch of the Multifunctional Center.

An application for disposal of funds will be considered no later than one month from the date of its registration. After the decision is made, a corresponding notification is sent to the applicant within five days ; if the documents were submitted through the Multifunctional Center, then the notification is sent to the same branch of the MFC.

In addition to purchasing an apartment, MSC funds can also be used to fulfill obligations under a loan agreement for:

buying or building a house;
purchasing a share in a residential property from a relative;
purchasing a room in a dorm or communal apartment.

Loan for maternity capital for the purchase of housing up to 3 years

According to Resolution No. 862 of December 12, 2007 on the rules for using maternal capital to improve housing conditions, capital funds can be used to repay a loan if it was provided under an agreement for the purchase or construction of housing, which was concluded with one of the following organizations:

Credit organizations (legal entities) that carry out banking operations on the basis of a license issued by the Central Bank of the Russian Federation.
A credit consumer cooperative (CCC), which has been operating for at least three years from the date of state registration.
Another organization that provides loans under a loan agreement, the fulfillment of obligations of which is secured by a mortgage.

The lender must transfer funds by bank transfer to the personal account of the recipient of the certificate (or his spouse) opened with a credit institution.

To receive a loan from a credit cooperative, you must be a member—a shareholder. The advantages of this method are the short loan period - 2-3 months, as well as more loyal requirements for borrowers than in banks. Loan repayment by members of the CPC can be ensured by a guarantee, collateral, and other methods provided for by federal laws.

When applying to other credit organizations (this concept is not fully regulated by law) that provide mortgage loans, income and credit history are not as important as for banks. The amounts with which such companies work are approximately comparable to the size of maternal capital (400 - 500 thousand rubles). To make sure that the Pension Fund will approve the allocation of funds to pay for such a transaction, financial organizations carefully check the purchased housing and the applicant’s documents. Thus, the solvency of the loan recipient is secured by the funds of the certificate, and the real estate itself is under an encumbrance until the money is transferred from the Pension Fund.

The main stages of buying a home using a loan:

Consideration of an application for a loan for the purchase or construction of real estate.
Usually you need to provide passport data, a certificate for maternal capital and information about the property. The acquisition of land for construction using MSK funds is not provided for by law. It is possible to build an individual housing construction project only on a plot that has already been registered as the property.
Registration of the purchase and sale transaction and signing of the loan agreement. After state registration of the agreement, funds are transferred in non-cash form by the lender to the real estate seller or applicant.
Contacting the territorial Pension Fund with an application for disposal and the required documents. If a positive decision is made, the money will be transferred to the account of the organization that issued the loan within 10 working days .

Until 2020, families could receive a loan against maternity capital from a microfinance organization (MFO). However, this opportunity allowed citizens to cash out certificate funds without further spending them in the direction permitted by law. Because of this, changes were made to the law on additional measures to support families with children, prohibiting MFOs from working with maternal capital, as well as tightening requirements for the CCP (Article 1 No. 54-FZ of 03/08/2015).

Is it possible to pay off a mortgage with maternity capital if the child is under 3 years old?

Means mat. capital may be used to pay off mortgage obligations that arose both after the birth of the second or subsequent child, and before that moment. In this case, there is no need to wait 3 years to improve your living conditions.

Early transfer of funds is possible to:

Payment of the first installment . When applying for a mortgage loan, banks always require a down payment, the amount of which can range from 10 to 30% of the cost of housing.
Repayment of principal and interest on the loan.

The procedure for sending MSC for mortgage repayment is as follows:

Registration of a personal certificate.
Submitting an application for disposal (indicating the chosen direction of use and amount) and the necessary documents.
Transfer of funds to the account of the credit institution that provided the money.

It is worth noting that the concept of “mortgage” itself does not mean a long-term loan at high interest rates. A mortgage involves pledging real estate as a way to fulfill loan obligations.

The bank may refuse to issue a loan due to low family income or bad credit history. Also, families themselves often do not want to take out a long-term mortgage and overpay interest. In these cases, you can contact KPK or other financial organizations that provide loans without real estate collateral.

Maternity capital up to 3 years: options for use

18 May 2020 15:43

In North Ossetia, over 51 thousand families with children became holders of certificates for maternity (family) capital.
Of these, 26.7 thousand families managed maternity capital funds in full or in part in the amount of more than 10 billion rubles. For those who have not yet decided on what purposes to spend the capital, the North Ossetia Branch of the Pension Fund reminds that in accordance with current legislation, maternity capital funds can be used regardless of the age of the child. In particular, this is possible in the case of paying a down payment when receiving a loan (loan), including a mortgage, for the purchase or construction of housing, as well as for repaying the principal debt and paying interest on loans and borrowings for the purchase or construction of housing.

In addition, until the child turns 3 years old, in connection with whose birth (adoption) the right to maternity capital arose, the money can be used for preschool education. The opportunity to pay with matkapa funds for the maintenance of any child in kindergarten and nursery without taking into account the child’s age has appeared since 2020. Now the main condition is that the organization where the child is cared for and looked after has a license to provide the appropriate services.

Regardless of the child’s age, maternal capital can be used to purchase goods and services for social adaptation and integration into society of disabled children.

Another direction is receiving a monthly payment from maternity capital funds for low-income families. It is important to note that this opportunity can be used by families in which a second child was born (adopted) starting from January 1, 2020. If the average income in the family (children and parents) does not exceed 1.5 times the subsistence level of a working-age citizen established in the region (in North Ossetia - 14,867 rubles), then you can apply to the Pension Fund to establish a monthly payment in in the amount of 9,372 rubles. You can apply for payment at any time within one and a half years from the date of birth of your second child. If you apply in the first six months, the payment will be established from the date of birth of the child, that is, funds will be paid, including the months before the application. If you apply later than six months, the payment is established from the date of submission of the application.

The amount of maternity capital in 2020 is 453,026 rubles.

Maternity capital for preschool education of children

Another new opportunity to use MSC before a child turns three years old is to pay for preschool education , childcare and childcare services. You can use the certificate to pay for kindergartens and nurseries, including private ones. However, they must be registered as legal entities, that is, operate in the form of organizations. You cannot use maternity capital to receive services from individual entrepreneurs.

List of required documents:

Certificate for MSK or its duplicate.
Passport and SNILS of the applicant.
Confirmation of the applicant's place of residence.
When applying to the Pension Fund or MFC, instead of the recipient of the certificate, his authorized representative - an identity card and documents confirming the place of primary residence and the powers of this authorized person.
If necessary, confirm the change of personal data.
Agreement for the provision of services concluded between the applicant and the educational organization, which specifies the obligations for the maintenance of children, care and supervision of them, as well as the calculation of the amount of payment.

Documents for the purchase or construction of housing using maternal capital

The main list of documents required for the purchase (construction) of housing using mat funds. capital:

Application for disposal of maternity capital.
Certificate for family capital (its duplicate).
Applicant's identity card.
Documents confirming the place of residence (stay) of the certificate holder.
The applicant's pension insurance certificate (SNILS).
A marriage certificate must be additionally provided if one of the parties to the purchase and sale (construction) of housing transaction is the spouse of the certificate recipient or they carried out work on the construction or reconstruction of an individual housing construction project (IHC).
A notarized obligation to allocate shares in the residential premises to all family members.

Documents required when paying the first installment on a loan or loan issued for the purchase (construction) of housing:

A copy of the agreement (credit or loan) for the purchase or construction of housing.
A copy of a state-registered mortgage agreement, if such conclusion is required by the terms of the credit agreement (loan).

Documents for ordering MSC to repay the principal debt and interest on a loan or loan:

A copy of the loan agreement. If the certificate funds are used to repay the principal and interest on a credit (loan) received earlier, you must additionally provide a copy of this agreement.
A certificate from the lender (the person who provided the loan) about the balance of the principal debt and interest on the loan or loan.
A copy of the mortgage agreement that has passed state registration, if its conclusion is provided for in the loan agreement.
Extract from the Unified State Register of Real Estate.
If the individual housing construction project has not yet been put into operation, it is additionally necessary to provide a registered agreement for participation in shared construction or a copy of the permit for the construction of a private house.
If the credit or loan was taken to pay the entrance and (or) share fee to the cooperative - confirmation of membership in the cooperative of the recipient of the certificate or his spouse.
A document confirming the non-cash transfer of a loan to an account opened with a credit institution in the name of the MSC recipient or his spouse.

All copies of documents are provided to the Pension Fund , accompanied by originals , which will be returned to the applicant after verification.

Monthly payments from maternity capital

Thanks to the initiative of Vladimir Putin, starting from 2020, there is a new opportunity to manage maternity capital before the child turns 3 years old. Families in which a second child was born or adopted after January 1, 2020 can receive monthly payments from MSC funds. However, this is permitted provided that the monthly average per capita family income, calculated over the last 12 months, does not exceed the subsistence level for the working-age population, which is established for each specific region (see table by region). The payment amount is equal to the regional children's subsistence level .

This measure of social support is provided until the child turns 1.5 years old :

From the date of birth - if the applicant applied for registration no later than six months after this date (funds for the missed period will be transferred in full).
From the date of application - if it was made later than six months from the date of birth of the child.

With the application for an order to the Pension Fund, you must provide the following documents:

Certificate for maternal capital or its duplicate.
Identity cards of all family members of the applicant.
Confirmation of residence of all members of the certificate holder.
Confirmation of the applicant’s residence in the Russian Federation.
SNILS of all members of the applicant's family.
Information about family composition (certificate of marriage or divorce, birth of all children or a court decision on adoption, certificate of change of personal data).
Certificate of bank details of the account opened in the name of the recipient of the certificate.
Information about the income of the applicant and his family members.
Reasons not to accept the calculation of the income of an individual family member.
Documents confirming single-parent family composition (if the applicant applies as a single parent).
A court decision or other documents confirming the recognition of a citizen as deceased, missing, deprivation of his parental rights (or decisions to cancel these documents).
Identification documents and confirming the authority of the authorized person - in case he applies instead of the recipient of the certificate.
Documents confirming the registration of guardianship, as well as permission from the guardianship and trusteeship authorities (TSA) to spend capital funds, if the guardians apply.

It is important to understand that this measure of social support applies only to the second child . Even if a third or subsequent child appeared in the family after 01/01/2018, it will not be possible to issue a monthly payment for him from the MSK for up to 1.5 years.

How can you use maternity capital before the expiration of 3 years?

The most common way of early use of MK is to improve living conditions. There are several options for its implementation.

For the purchase of housing

If a family feels the need to expand their living space (perhaps even has some accumulated funds), it is not necessary to take out a mortgage. Any financial organization that lends money can become a lender. There is no requirement to leave real estate as collateral.

With this option, you can implement the certificate ahead of schedule:

as a down payment;
to repay a loan or pay interest on it.

In order to exercise his right to dispose of the funds of the certificate, the owner should submit an application to the Pension Fund branch and provide the following documents:

passport of the certificate holder (or his spouse);
marriage certificate, if the transaction is carried out by a spouse;
a copy of the purchase and sale agreement;
certificate confirming the right of ownership of housing (copy);
obligation to register housing as the common joint property of all family members (no later than 6 months from a certain date);
a certificate from the seller of the residential premises regarding the amount of the remaining unpaid amount under an installment plan agreement.

Read also: Maternity capital for the first child

For housing construction

It is very difficult to spend the certificate amount on housing construction. Banks are reluctant to provide such loans, especially when it comes to the participation of maternity capital. The reasons for refusals may be different:

banks do not classify maternity capital as personal funds;
the bank has the right to demand payment of 10% of the cost of real estate with its own money;
The fee must be paid upon concluding the contract, but the transfer of funds by the MK fund occurs within 2 months from the moment of its signing.

To receive a loan for housing construction, you must submit the same documents that are required when purchasing a finished property. It must be remembered that under such an agreement the interest rate will be higher. To repay a loan through a certificate, an application and all necessary documents are submitted to the Pension Fund.

To pay off the mortgage

The legislation allows for the disposal of certificate funds ahead of schedule if it is used:

as a down payment on a mortgage;
to pay off the principal debt on the mortgage.

As a down payment

A mandatory condition for concluding a mortgage agreement is making a down payment. It is approximately 10-30% of the total cost of housing. This amount can be extremely large for most young families. Therefore, in such a situation, it is optimal to use maternal capital. To send certificate funds as a mortgage payment you need:

receive a certificate;
submit an application to the Pension Fund, indicating the amount of expenses and their type;
present documents confirming the fact that the mortgage agreement has been concluded;
submit to the Pension Fund an obligation to register housing as the common property of all family members.

The agreement stipulates the provision of sending the appropriate contribution amount within six months. Until it is received, the amount of monthly payments is calculated by the bank from the total cost of the apartment. If the certificate holder also has his own savings, then it becomes possible to increase the down payment and reduce interest on the loan.

It is important to note that MK is transferred by the Pension Fund to the bank that provided the loan (not to the seller of the alienated property).

Read also: Repaying a mortgage with maternity capital

To repay the principal debt

Maternity capital can be used ahead of schedule to pay off interest on the mortgage agreement and to pay off the principal debt.

It is not permitted to sell the certificate to pay fines for late fulfillment of obligations under a mortgage agreement (penalties, penalties, commissions).

It is important to remember that the maternity capital will be used primarily to pay off the interest of the current month, and only the remaining amount after that will be used to pay off the debt.

It is necessary to register housing as shared ownership within 6 months after:

the loan has been repaid in full (the encumbrance has been removed);
the dwelling was put into operation after construction;
the last contribution to the cooperative has been made;
The Pension Fund transferred funds from the state program (in a number of other cases).

Matkapital for a disabled child

Another permitted use of maternity capital funds is the purchase of goods and payment for services for the social adaptation of disabled children. The money is transferred to the applicant’s account in the form of compensation for goods already purchased or services provided.

Basic conditions for spending maternity capital:

The goods and services for which the applicant intends to compensate must be included in the individual program for rehabilitation and habilitation of a disabled child (IPRA).
MSC funds are not allowed to be used for technical means of rehabilitation (TSR) and activities that are provided by the state free of charge. This list was approved by Decree of the Government of the Russian Federation No. 2347-r dated December 30, 2005 on the federal list of rehabilitation measures and facilities provided to people with disabilities.
Before submitting an application for the disposal of family capital to the Pension Fund, it is necessary to obtain an act of verification of the availability of purchased funds for the social adaptation of a disabled person or the provision of services from the territorial social authority. services to the population.

The list of goods and services for social adaptation and integration of disabled children into society was approved by Decree of the Government of the Russian Federation No. 831-r dated April 30, 2020.

to direct MSC funds to the treatment of disabled children , since according to the law it is provided by the state free of charge. However, in practice, quotas for operations are often not enough, and it can be difficult to obtain free services from a speech therapist or psychologist.

When applying to the Pension Fund, the application for disposal of maternal capital must be accompanied by:

Certificate for MSK.
Passport and SNILS of the applicant.
The current IPRA.
Documents confirming payment for goods and services (cash and sales receipts, sales contracts, invoices and other documents indicating the amount of payment).
Act of checking the availability of goods.
Notarized power of attorney - if the applicant is represented by his authorized representative.
Applicant's bank account details.

When can you use maternity capital?

In 2020, the recipient can spend maternity capital funds three years after the birth or adoption of a second child or subsequent children (more about the maternity capital program). But this law has exceptions - until the child turns 3 years old, money is allowed to be spent on:

Improving the living conditions of the whole family. You can buy an apartment, build a house, including on credit or without a mortgage. Money is transferred to pay off the principal debt and the interest actually accrued by the bank. If the house was built after 01/01/2017, the right to sell the capital is retained - the applicant receives compensation if he registers ownership of it.
For goods or services necessary for social adaptation and/or integration of a child with a disability. There are no restrictions on the cost or quantity of goods or services.

Without violating the law, money can be used for the funded part of the mother’s pension only three years after the birth or adoption of the child. The conditions are similar when spending money on children’s education, and it is possible to pay for education for any child.

Regardless of the purpose of spending the money, it can only be used by transferring it through the pension fund in a non-cash manner. For this purpose, a corresponding order is issued. Maternity capital cannot be withdrawn in cash and there are no legal schemes to take money. The participation of parents in illegal schemes is regarded as a crime.

There are no other time limits for applying to the Pension Fund. After three years, the recipient has the right to spend the funds at any time, but only once.

How to legally cash out maternity capital in 2020 up to 3 years

In 2015-2016, all recipients of maternity capital could also receive one-time payments from certificate funds in the amount of 20 and 25 thousand rubles, respectively. The money was transferred to the applicant’s account, after which it could be withdrawn and used at its own discretion. In 2020, there is an alternative to lump sum payments - monthly payments. The spending of these funds is also not regulated, however, only families in which the second child was born no earlier than 01/01/2018 can apply for registration. Today, this is the only way to receive real “money” from capital.

Although it is technically possible to cash out maternity capital funds transferred by the lender to the applicant’s account, this method is illegal .