Is it possible to pay off a mortgage with the help of maternity capital

Repaying a mortgage with maternity capital is beneficial for families with children. Legislation defines the possibility of using state assistance to families to buy an apartment or build a house.

Using a mortgage or housing loan, families have the opportunity to direct finances for its full or partial repayment. This procedure has certain nuances.

How to pay off a mortgage with maternity capital

This can be done in different ways:

• pay the down payment of a pledge or loan;
• pay off interest on a home loan;
• partially pay the loan (mortgage is issued for the full cost of living space).

Important! Banks that provide secured loans are required to accept MC funds as mortgage repayment.

Usually, they cover from 10 to 40% of the debt (depending on the price of living space).

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Requirements and payment procedure

The conditions for repaying a mortgage by using the funds of the MK" include:

• the focus of the loan is to improve the condition of housing in families;
• location of residential premises - the territory of the Russian Federation;
• the right to be borrowers belongs to both the wife and the husband, if the marriage is officially registered;
• registration of the acquired apartment or house in joint ownership, since assistance from the state is the common property of the family;
• the proportion of children is determined by the parents;
• parts of the apartment, issued for minors, are approved by a notary.

Such a step will eliminate possible problems in the sale of premises purchased with the use of family capital.

Mortgage repayment procedure in 2019

To solve this problem, you first need to go through a number of stages, namely:

1. In agreement with the bank, the client receives a housing loan for the full amount, the apartment is registered as a property.
2. The credit institution transfers finances to the seller, the client with him - in full settlement. The bank takes the apartment on bail.
3. The credit institution is informed about the client's intention to repay the mortgage with maternity capital.
4. The bank provides information on the balance of the amount of money and interest, in addition, an act establishing the rights to the purchased apartment, which is in a mortgage

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Required documents

The owner of the certificate submits an application of a certain form to the local branch of the Pension Fund for the disposal of state aid.

In addition to the application, you will need:

• certificate;
• loan agreement;
• data from the bank on the balance of the debt;
• applicant's identity card (mother, father or guardian). When concluding a loan agreement, the husband will need his documents and a marriage certificate;
• official paper confirming the ownership of housing;
• a notarized commitment to the common ownership of housing.

Important! The exact shares must be indicated within half a year from the beginning of the repayment of the pledge.

Other papers you may need:

• power of attorney (if the transaction is made by a representative);
• a court order depriving the rights of a parent and on their transfer to another citizen;
• certificate of death of the owner of the certificate and transfer of rights to another person;
• adoption documents.

The PF department issues a receipt for the acceptance of documents (with their list and time of acceptance).

Important! Approval will be required to transfer money from family equity to a mortgage account.

What to do after getting approval

Specialists are given one month to check the submitted documents. Any decision will be sent to the applicant in writing.

With the decision of the PF, you must contact the bank to notify your intentions. Most banks have set a specific time limit of 30 days for this.

Important! A positive decision will lead to the transfer of money by the Pension Fund to the bank account within two months.

After the bank receives the money, the borrower will be offered the option of interacting with him:

• reduce the terms of the loan on collateral, monthly payments will be the same size;
• keep the terms of payments with a decrease in the size of the regular payment;
• repayment of a mortgage loan by maternity capital.

The first two options oblige the bank to provide a new monthly payment schedule.

In the latter situation, it is better for the client to demand a loan closing document in order to avoid possible claims from the financial institution.

Legality of refusal

If you refuse to provide maternity capital to pay the mortgage debt, you should find out why the PF did it. The applicant may appeal the decision to higher authorities or to the court.

The reasons for refusing to transfer family capital are as follows:

• provided an incomplete list of securities or false information;
• errors were made in the application;
• the parent is deprived of the rights to children, which was the reason for the refusal;
• the applicant has committed a criminal act against a child;
• the competence of the guardian by the guardianship service is limited when using
• family capital.

Attention! The period of work with citizens' appeals is 1 month. During this time, a response will come, canceling or approving the decision.

There are no other reasons to refuse the applicant's request by law.

Terms of use of funds

The certificate is valid for an unspecified time. This means that the amount due can be received at any time as needed.

In case of death or loss of a citizen's rights to assistance from the state, the second parent (guardian) or a child after the age of 23 is allowed to use the money.

Important! Early termination of the mortgage agreement entitles the borrower to recalculate and return insurance premiums that were paid and not used.

It is possible to obtain a tax withholding of 13% of the amount of payments. Maternity capital is not used for reimbursement of penalties, penalties in relation to a mortgage loan.

Refund deadlines

Debtors can repay the money soon after the loan is issued. Banking operation will be regarded as early repayment of the loan.

Attention! It should be remembered that family capital is not cashed out. To prevent penalties from the bank for such actions, the client must conclude an agreement and comply with obligations.

Some banks impose a ban on early repayment of mortgages by maternity capital for a certain period. Lending institutions have programs that provide for the refusal of early loan repayments in exchange for a reduction in interest on it.

There are 2 options for recalculating contributions to partially repay the pledge of an earlier date with family capital:

1. Save the term of the loan by reducing the amount of monthly payments.
2. Reduce the loan term, leaving the size of regular payments unchanged.

How to make a repayment

When applying for a mortgage, it is possible to use the capital as a down payment.

Initial fee

Not all banks provide this service.

In order to use the capital as a down payment, you should wait until the child is three years old.

In this situation, the amount of money must be full, if part of it was used, the remainder can be used as repayment of the existing loan. The presence of a stable income must be documented.

Important! Such loans are disadvantageous to the borrower, since a high interest rate is used, even with a small loan amount for a maximum period.

List of documents for the lender

For full or partial closing of a pledge in a bank, you will need the following package of documents:

• passport;
• certificate confirming the availability of capital;
• loan application.

The main part of the debt

The method that includes the principal amount of the debt is used most often. It is the most beneficial for the certificate holder:

• the principal debt is reduced;
• interest is charged on the balance;
• in general, the amount of overpayment will decrease.

Interest payment

In this situation, the financial institution that receives the interest that is due to it has a great benefit. In reality, borrowers use this scheme infrequently. They also have a certain benefit, they can pay off the main debt, regular payments are reduced. If you make a higher payment, the repayment period will be reduced.

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