Loan for a large family – features, conditions and interest rates
With the arrival of a child in the family before every parent, they are asking eternal questions: where to live now. Of course, a large family requires a lot more space. But where to get the money to buy a new apartment? Today, you can get a mortgage and get a repayment plan at almost any credit institution.
However, even under these conditions, many Russian Federation citizens do not allow a one-off initial payment. This does not mean that you need despair, because today there are special conditions that allow families to get more housing at the lowest interest rate. Discounted loans for large families allow you to get money quickly and at the lowest price.
What are the benefits?
At least three younger children are considered to be a large family. These citizens may claim some benefits from the state, including housing bonus programs. For example, today there is a mortgage that includes state support. However, there are other programs at the federal and regional levels.
In 2005, the “Affordable” Housing program was developed. “If at that moment the family managed to get on the line, now one-third of the cost of the apartment can be paid at the cost of the state. If there is another child in the family since 2005, the budget will increase by an additional 18%. Therefore, there should be no additional commissions on these loans and the interest rate will not increase annually. It is also worth considering that the preferential scheme involves the use of parent capital as an initial contribution or repayment of a certain amount of loans.
There are also numerous mortgages programs and loans to large families for construction, in which installments are provided for up to 30 years. However, under the terms of such lending, the interest rate will be much higher and the advance will also have to be paid when processing the documents.
In some situations, a partial loan may be repaid by receiving a subsidy from the local budget. Sometimes the amount of the grant can reach up to 100%. However, this is only possible if the family receives the status ‘Need to improve housing’. There are also a huge number of banks where you can get a loan to large families for a car at reduced prices.
Moreover, many still stand in line to get their own home from the state. In this case, it pays to contact the local authorities and get up to 50% of the average cost of a rented apartment.
If one of the spouses is in military service, then it is worth considering creating a military mortgage.
What documents need to be prepared
To get a discounted loan for large families in the case of housing, spouses must first confirm their current status. After they need to prepare documents that will correspond to the fact that they really need to improve their living conditions. To do this, you need to contact your local authorities to get a paper that will show certain parameters of the apartment.
Therefore, if a person falls too few square meters, the family may be eligible for subsidies. The technical condition of the apartment is also taken into account.
However, it should be borne in mind that the married couple and children must be registered in the region in which they want to obtain a loan. Before accepting the loan, the large family must prepare copies of all documents, the original birth certificates of the children and the registration of the marriage.
In addition, it is necessary to take care of documents that confirm the achievable income in the family. If you plan to use parent capital, you must bring original documents with you and make a photocopy of them.
What conditions must a family meet to obtain a preferential mortgage?
To get a mortgage to buy an apartment, you must meet some conditions.
First, the couple must assemble insurance for your home and your life. Depending on the selected program, an initial payment of 10 to 30% of the total cost of the selected apartment may also be required. In some banking institutions, a deposit in the form of own housing is allowed when applying for a large family loan.
It is also worth considering that a new mortgage loan option of 13% appeared in 2015. This program counts for 1 year. To become a participant, it is necessary to draw up a loan agreement for the purchase of residential space in St. Petersburg or Moscow, which will cost 8 million USD.
If contracts are implemented in other regions, the cost can be up to 3 million USD. At the same time, borrowers are required to pay at least 20% of the cost of housing. The duration of these loans is up to 362 months.
Mortgage loan for large families: how to get
Today, federal law, which in terms of preferential mortgages, is still under consideration. Some programs in this area do not yet exist. However, there are special government grants that can be used to obtain benefits for housing. These conditions may vary considerably depending on the area of residence of the spouses and also the creditor bank.
This mortgage is usually issued very quickly (in a few days). In this case, you can bring in proxy agents who can be the parents of either spouse or both.
However, it should be borne in mind that no banks themselves grant mortgage benefits for large families. All this is done exclusively at the expense of the state. However, there are state banking institutions that have already developed their own programs to help large families: Good Finance and GFIC. Let’s look at them in more detail.
Loan to large families in Good Finance
Under the terms of this organization, for preferential loans can calculate those who want to use the parent capital as one of the loan contributions. In this case, the interest rate will be a minimum of 9.5% per year. The first payment can be up to 15% of the total price of the selected apartment. Loan repayment is offered for 30 years.
The main advantage of this program is that if a new child appears in the family during the loan repayment period, interest repayment can be postponed.
Good Finance also admits the attraction of co-borrowers who may be the parents of spouses. For this reason, it is possible to increase the aggregation of the monthly income needed to approve a loan for a large family.
Program from GFIC
It is another government organization that provides assistance in raising funds for the purchase of an apartment under the most favorable conditions.
Under this program, the rate will be 12% per year. However, it may increase depending on the amount of the deposit. Also, the commission increases if spouses refuse to take out life insurance and housing. In this case, the interest rate will be at least 20%.
You can use funds raised from the state after the child’s birth as an initial contribution.
To get a loan for a large family in this organization will also have to take out insurance. In this case, the interest rate on the loan will be 13.5%. The loan amount can be from 300 thousand USD to 15 million.
It is also necessary to bring a guarantor under bank conditions.
The loan can be repaid in advance.
Pitfalls of preferential mortgages
Before you take money from a bank, you need to consider a few nuances. First, the maximum amount of credit is always calculated on the basis of the solvency data of the spouses. The number of children in the family is also taken into account, because the more children there are, the more money parents are forced to spend on them.
It is necessary to pay attention to the conditions of the loan, which are written in small print. As a rule, the Bank deducts the commission for services as well as for other options that are attached automatically after the contract is signed.
Some banks provide their specialist, which performs housing assessments. Don’t be happy about it. The fact is that appraisers sometimes deliberately underestimate the real value of an apartment so that a banking organization can spend a smaller amount of cash.