For many Russian families, maternity capital is financial support for those who pay a mortgage or want to take one. You can use the funds, or rather, make a decision to implement the certificate, immediately after receiving it. For about a month, the application and submitted documents to the Pension Fund (personal account) are being considered to pay off the mortgage with maternity capital. If approved, the Fund transfers the money to the bank account within 30 days. It turns out that after two months of waiting, the family capital will finally be realized.

List of documents to the Pension Fund for repaying a mortgage with maternity capital

List of documents for obtaining a mortgage

Since 2007, citizens have tested the system of obtaining housing through a bank with subsequent repayment with maternity capital. Parents will still have to first draw up an agreement and make a down payment. The bank will not wait for the transfer of funds from the Pension Fund. This is a risky and rash step for a credit institution.

Then, by contacting the Pension Fund, you should write an application for the sale of capital funds. The lucky certificate holder must prepare the following package of papers in advance:

1. statement;
2. certificate;
3. SNILS passport;
4. a copy of the contract for the purchase of housing with a mortgage;
5. a copy of the agreement with the bank on concluding a transaction;
6. documents confirming a building permit (if the property is purchased in an unfinished house);
7. obligation to provide a share to children after repayment of the mortgage.

The law provides for making a down payment using maternity capital funds. However, during registration, time conflicts may arise. The bank waits about a month for the payment to arrive. It takes approximately 60 days to implement the certificate. The Pension Fund takes one month to respond, and the parent waits for a positive or negative decision. If the implementation is approved, another month passes to complete the transfer. If a refusal is received, you should go to court. Any litigation regarding maternity capital will be won.

How to use funds to pay off a mortgage?

The borrower’s mechanism of action depends on how exactly he plans to use maternity capital. There are two schemes:

1. Repayment of an existing loan

To use funds, you need to make sure that the loan was of a targeted nature, i.e. was issued to improve the living conditions of the family. If this is the case, the borrower communicates with the bank and informs them of their intention to pay off the loan ahead of schedule.

The manager will tell you what documents are needed to pay off the mortgage. As a rule, credit institutions ask clients for an official letter indicating the transfer amount and the approximate date. At the branch, the borrower will be given a copy of the loan agreement and a certificate of the balance of debt, which will be required to submit an application to the Pension Fund.

After resolving the issue with the bank, the borrower applies to the Pension Fund to use the capital funds. Upon review of the submitted documents, the government agency transfers money to the citizen’s loan account. Then the credit institution recalculates the amount of interest remaining due and (or) the amount of the monthly payment.

1. Using maternity capital for a down payment

To operate according to this scheme, a young family needs to choose a bank that works with maternity capital. Experts recommend contacting several credit institutions that have appropriate programs to choose the optimal conditions.

If the bank responds positively after reviewing the client’s application, the future borrower collects a package of papers required to obtain a loan. Two items are added to the “classic” set: a capital certificate and a certificate from the Pension Fund about the balance of unused funds.

After receiving the documentation, the citizen signs an agreement with the apartment seller, registers it with Rosreestr and submits it to the bank. He issues the required amount, which is sent to the other party to the transaction. Next, the borrower applies to the Pension Fund with an application for the use of maternal capital.

Based on the results of consideration of the application, the Pension Fund makes a decision. If it is positive, the funds are sent to the borrower's loan account. Next, the bank acts in accordance with the terms of the lending program: changes the payment schedule, reduces the interest rate, etc.

List of documents to the pension fund for repaying the mortgage with maternity capital

If a family has been paying off a debt for real estate for several years and wants to pay it off partially or in full through government support, the certificate holder will need to attach the following documents to their passport, SNILS, certificate and application:

1. A copy of the loan agreement. According to its terms, the party receiving the loan undertakes to pay a certain amount and interest on time.
2. A certificate from the bank about the balance of the debt. In some organizations you will have to pay for such paper. It would not hurt to attach to the certificate the details of the organization that issued the loan for the purchase of real estate.
3. A copy of the mortgage agreement. The document must be registered.
4. Extract from the Unified State Register of Real Estate. Issued by the Office and branches of Rosreestr of the region where you live. To obtain it, you will need to take your passport with you and pay the fee in advance. The processing time is from 7 to 14 days depending on the region of Russia.

Thus, in order to provide documents to the Pension Fund, you will have to visit several institutions to collect a complete set of documents.

Good to know! After transferring the amount of maternity capital to the account of the credit institution, a recalculation is made. The monthly amount or percentage decreases.

Borrower's right

At the legislative level, citizens have the right to use maternity capital when purchasing housing.

The money does not have to be invested specifically in the purchase under the purchase and sale agreement; it is allowed to use it for:

• construction;
• buying a home with a mortgage.

This right is granted to a young family with more than two children in order to protect their rights. Therefore, the law establishes such an obligation to accept mortgage debt with maternity capital.

Here's how you can pay off your mortgage:

1. Pay a down payment: this option is not available at all credit institutions. Many banks believe that payment by maternity capital indicates the insolvency of the borrower. However, it is worth remembering that this is not particularly beneficial for the borrower himself, because the interest rate turns out to be high, even if the loan term is short.
2. Pay off the principal portion of debt obligations. This option is quite often used, and in principle is beneficial for borrowers, because in this case the amount of the principal debt becomes smaller, and therefore the bank’s interest will be charged on the remaining amount of the debt. This means that the overpayment amount will be significantly less.
3. Paying interest is not the most common option, because... it is more profitable for the bank, because it is this organization that will receive the required interest. However, there are also advantages for the borrower, this applies to cases when the mortgage will not be repaid ahead of schedule. When paying interest, the borrower will only pay the principal amount, which means that due to interest payments, the monthly payment will be less. However, it is allowed to deposit a larger amount in order to pay off the debt faster.

Conditions

The mortgage repayment conditions are quite acceptable and achievable.

The main ones:

• By purchasing home ownership, the borrower thereby strives to improve living conditions;
• housing must be purchased on the territory of the Russian Federation;
• payment of the principal debt under an earlier open mortgage agreement;
• payment of the down payment;
• payment of interest under a mortgage agreement.

Not all banks use maternity capital to pay off a mortgage, but such banks as Sberbank of Russia, VTB 24 and Gazprombank create all the necessary conditions for paying off a mortgage loan using the above method.

This is important to know: How to cash out maternity capital to buy an apartment

Providing this opportunity does not require additional investments and does not depend on the amount of purchase of the home.

Moreover, the certificate for receiving maternity capital does not have a specific validity period, and therefore can be used at any time.

However, if the borrower wishes to make a down payment using these funds, this is possible only when the child reaches three years of age.

Procedure for repaying loan balances

So, after collecting all the necessary documents, you should once again check the list with the one published on the official website of the Pension Fund of Russia https://www.pfrf.ru/knopki/zhizn~434. The fact that different regions may require additional paperwork is taken into account.

To fully repay the mortgage, you should check with the bank whether they charge a commission for the non-cash transfer of family capital. After transferring the money, the homeowner must go to the bank to receive written notification that mortgage payments have been completed. If the debt is planned to be repaid in advance, the financial institution should also be notified of this.

For reference! The Pension Fund requires parents to have a notarized obligation to allocate shares after the mortgage is paid off. Such a document is not in the list presented on the official website of the Foundation.

Typical mistakes of applicants

If we analyze the reviews of certificate holders and their experience of investing maternity capital, we can conclude that getting money is not so easy. There are many nuances that may arise when accepting documents at the Pension Fund.

To prevent returns and refusals, you should consider the following common mistakes:

• The application is illegible.
• The names of the persons who applied for the sale of capital and the persons who own the property do not match.
• The information is not confirmed by reliable documents (for example, a passport or certificate).
• Lack of original or copy of real estate or children.
• False information about children has been provided or the relationship has not been proven.
• Inconsistencies in rental and mortgage agreements.
• Lack of bank details.
• Construction permit documents. Typically, such paper is issued to the company that is engaged in the construction of the house. In rare cases, it may not be received by the construction organization or forgotten by parents.

We submit documents via the Internet

Attention! Documents for implementation can be submitted electronically. This method will save you from wasting time sitting in lines at the Pension Fund. The review period is the same, exactly a month.

According to the decision of the Pension Fund, you will have to appear at the fund’s branch and pick up the basis for refusal or confirmation of an affirmative answer. If the Pension Fund of the Russian Federation approves the mortgage, the owner of the certificate fills out an application for the transfer of maternity capital funds.

Step-by-step instructions for investing mat capital in a mortgage

Stages of raising maternity capital finance for a mortgage:

• Visit the bank. Find out about the possibility of partial or complete early repayment of the loan using the certificate. Take a certificate of the balance of debt.
• If the bank approves of your decision, go to the Pension Fund. To do this, prepare the documents listed above.
• Bring the completed package to the Pension Fund.
• There, write a statement that you want to pay for the mortgage with maternity capital.
• Receive a receipt indicating that the documents have been accepted for consideration.
• Wait for a decision. You will learn about it in about 1 month.
• If the decision is favorable, go to the Pension Fund again to get a certificate about the amount of funds on the certificate. It will be issued approximately 3 days after sending the request.
• Collect a package of papers to the bank and attach an application. It should indicate for what purposes you want to use the microcredit card (initial deposit/repayment of interest/principal debt/early debt liquidation).
• After transferring the papers to the bank, wait for the money to be transferred. This will take about 10 days.

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After transferring the money to the bank, you will be given a new payment schedule. If the mortgage was repaid ahead of schedule, then request a certificate of no debt to the organization.

Submitting an application for an order in electronic form

You don’t have to personally visit the pension fund to manage the certificate’s finances. You can submit an application through the government services website - gosuslugi.ru. Let's give detailed instructions:

1. Type the link above in the address bar and follow it.
2. Click on the inscription “Services”.
3. In the “Family and Children” block, select the “Management of maternity capital” item.
4. In the “Electronic Services” block, select the 3rd line, which provides for the use of money to improve living conditions.
5. A form will open in front of you, which you need to fill out with valid information.
6. Submit your application.
7. Wait for a decision.

To fill out the form, you will need SNILS, a passport, and an electronic application. After this, you will be informed when you need to provide the originals of these documents to the pension fund.

Removal of mortgage obligation

After making the last contribution and completing cooperation with the bank, parents have six months left to remove their obligations to the Pension Fund. Children need to be allocated shares in an apartment or house on which maternity capital funds were spent. There are several options for who will fulfill the obligation.

If the apartment is owned by the husband, then he must take responsibility for providing housing for the children after paying off the mortgage. If the property belongs to both parents, then the wife can assume the obligation.

In any case, to register real estate for children you will need:

• passports, birth and marriage certificates;
• obligation certified by a notary;
• purchase and sale agreement (equity participation for apartments in new buildings);
• duty payment receipts.

With these documents, you should go to the registration chamber to receive a certificate of state registration, which will indicate the shares for children. The transfer of living space is carried out by a gift agreement.

Implementing a certificate

Implementing a certificate is a complex task. Ideally, it will take two months to complete the procedure. In case of refusal, litigation lasts more than six months. Even if the judge approves the payment to the mother, the FIU is required by law to file an appeal to the Supreme Court. The consideration of the case again lasts about a month. Why this is needed, no one can answer yet.

Probably, if the family capital turnover system had been simpler, there would not have been so many scammers helping to obtain the funds required by law for state support.

Attention! Due to recent changes in legislation, the legal information in this article may be out of date!

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