Is it possible to buy an apartment from relatives?
Content
Current legislation does not prohibit the purchase of real estate from relatives, including with the use of mortgage funds. However, not all banks are ready to issue a loan for such a transaction, since there is always a fear that the transaction is made for the purpose of cashing out borrowed funds.
Many banks in their mortgage programs immediately indicate a ban on lending for the purchase of housing from relatives. This is especially true for government programs:
for example, for a military mortgage or a program for young families.
Banks are extremely wary of transactions with relatives when the down payment on the mortgage is maternity capital. Therefore, before making transactions with relatives, check with banks about the possibility of getting a loan for such a purchase.
Features of military mortgages from relatives
Despite the strict rules for obtaining mortgages for military personnel, the choice of the owner of housing, which will be financed by the state, is assessed by the bank, and not by a government agency.
FGKU "Rosvoenipoteka" gives clear explanations on this issue. In essence, the state pays funds for the purchase of housing for a serviceman for the intended purpose to a special bank account and there is no risk that the officer will use budget funds for other purposes.
When approving the financing of a military mortgage, government officials will check documents that state that the premises comply with construction, fire safety, technical and sanitary standards described in the Housing Code of the Russian Federation (Article 15 Part 2).
Obtaining a military mortgage with the participation of a relative is quite possible. At the same time, verification of the seller and his family ties with the military personnel - the borrower is entirely within the competence of the bank. If the bank believes that the transaction with relatives is not aimed at actually buying out the home, but at receiving money within the family for a long time, then a refusal is possible.
In the event of a conflict with the family within which the property was sold, and loss of housing, FGKU Rosvoenipoteka will not accept any claims from the officer.
Features of buying a home from relatives
The transaction itself for buying a home from relatives is practically no different from buying from strangers. However, at the stage of obtaining borrowed funds, you will have to prove to the bank the fact that the purpose of the purchase is not enrichment and the transaction is not fictitious.
In case of a mortgage transaction between relatives, all payments must be made only by non-cash method. This confirms that the real estate seller has received a down payment and borrowed funds.
If it was not possible to obtain bank approval for a mortgage loan and the missing amount is not too large, then you can consider the option of taking out a consumer loan secured by the property you own. Of course, the interest rate on such a loan will be higher, but this may be a real way to resolve the purchase issue.
Benefits of purchasing
Despite the difficulties of obtaining a loan to buy real estate from relatives, such a transaction has certain advantages:
- confidence in the cleanliness of the purchased property and that the transaction will not be terminated by the parties;
- the ability to negotiate a lower price compared to prices on the real estate market;
- the possibility of paying the down payment in installments (you can withdraw and re-deposit the same funds) or the temporary transfer of free family funds as a down payment.
All these benefits will apply provided that the family has friendly and trusting relationships.
Disadvantages and limitations of the deal
There are also difficulties when completing purchase and sale transactions of residential premises between relatives using a mortgage:
- prohibition on transactions between married persons;
- the impossibility of concluding such a transaction when attracting funds from government programs;
- when buying an apartment from your parents, you need confirmation that it is not their only home;
- impossibility of processing a tax deduction (clause 5 of Article 220 of the Tax Code of the Russian Federation);
- limited choice of credit institutions.
There are quite a few difficulties, but if buying a home from relatives is the only opportunity to improve your living conditions, then you can find a suitable way to resolve the issue.
Use of maternity capital
Is it possible to buy an apartment with a mortgage from parents with maternity capital? Using family capital as a down payment on a mortgage is widely practiced by banks. But only when the loan is issued for the purchase of housing from third parties. The participation of relatives of the owner of maternal capital in the transaction automatically arouses suspicion among the bank's security service and legal department. This means that your chances of getting your mortgage approved are seriously reduced.
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