Preferential mortgage for building a house: how the program works

What is the program

Since 2020, Russia has a state programDecree of the Government of the Russian Federation of April 23, 2020 No. 566 “On approval of the Rules for reimbursement to credit and other organizations lost income on housing (mortgage) loans (loans) issued to citizens of the Russian Federation in 2020–2022 years"for which you can buy an apartment in a mortgage at a reduced rate. True, only housing in a new building is allowed to be purchased. But to participate, you do not need to have a family, children or low income, the program is available to all citizens of the Russian Federation (but banks may have their own requirements, such as age). We talked about how to buy an apartment on it in separate material.

However, at the end of 2021, the program distributedDecree of the Government of the Russian Federation of October 18, 2021 No. 1758 “On the Peculiarities of Determining Funds Limits for the Issuance of Housing (Mortgage) Loans (Loans) Issued to Citizens of the Russian Federation in 2020–2022, for which credit and other organizations are reimbursed for lost income, and on amendments to certain acts of the Government of the Russian Federation Federations"

to private houses. And in May 2022, another very important change was made to it, which allowsDecree of the Government of the Russian Federation of May 31, 2022 No. No. 993 On Amendments to the Rules for Reimbursing Credit and Other Organizations for Lost Income for housing (mortgage) loans (loans) issued to citizens of the Russian Federation in 2020 — 2022 years" build your own home.

The private sector is a specific topic, so we analyze it in this review.

What can you do with mortgage money?

The options are:

• Buy a finished or under construction house (including a townhouse) from a legal entity.
• Buy a house with a land plot from a legal entity.
• Buy a land plot for the subsequent construction of a house.
• Build a house with the involvement of a contractor (must be accredited by the bank, a random construction team will not work).
• Build a house on your own.

What are the conditions for a preferential mortgage to build or buy a house

Now the following rules apply:

• Interest rate - 7%.
• The initial payment is 15%.
• The maximum loan is 6 million rubles. For Moscow, St. Petersburg, Moscow and Leningrad regions - 12 million. This amount does not include the down payment.
• Banks providing loans are list on the website of the Dom. RF". Now there are 76 of them.
• The program is valid until December 31, 2022. Until that day, you need to have time to get a loan, and not give it back. But it keeps getting extended. There is a good chance that this will be the case this time as well.

What about collateral when building a house on a preferential mortgage

With the purchase of a house, everything is clear, it works like any other mortgage. you conclude contract of sale with the seller. The bank transfers money through it and receives your housing as collateral.

There are more questions with construction, because there are other risks. The bank can issue the amount that the client demanded, but he will not build anything. And the organization, in fact, will not have an object that it can receive as collateral. That is why things work a little differently here.

As a guarantee, you can offer other available housing, which is located in Russia. But let's say the client has no property. In this case, the plot will first act as collateral. In addition, the recipient of the mortgage assumes the obligation to build a house within 12 months and register it with Rosreestr. And then this building will become a pledge. If the year is not met, the rate will be raised to a value equal to key rate +4.5 percentage points.

In addition, the bank may ask you to bring a guarantor - the loan obligations will be transferred to him if you stop paying him.