Rosselkhozbank reduced rates on the “Mortgage with State Support” and “Military Mortgage” programs

Availability of housing is the most important issue when planning a move, especially to another country. In solving this pressing problem, the Russian government is ready to help people who decide to move to the Russian Federation. What kind of assistance is provided for compatriots and migrants when purchasing housing will be useful for everyone who finds themselves in new conditions to know.

What is relocation?

The movement of peoples is a process that has long historical roots. The main incentive that prompted ancient people to change their area of ​​residence was weather and natural conditions that made it impossible or, conversely, comfortable to stay in a particular territory.

Today, the migration of peoples continues with no less, and sometimes even greater, intensity. In the context of one state, it can be divided into external and internal, with the only difference being that the first involves traveling abroad, and the second concerns only those who migrate within the country.

From the perspective of the reasons why people leave their homes, migration processes can be divided into voluntary and forced.

In the first case, migrants become such by personal will. For example, they are not satisfied with the climate in which they live, or the level of income that can be obtained in their usual place. Those who are forced to move usually flee from conditions beyond their control - hunger, war, epidemic.

Features of the State Program for the Resettlement of Compatriots

For the first time, people started talking about such a phenomenon as repatriation in Russia in 2006. It was then that the State Program to promote the voluntary resettlement of compatriots to the Russian Federation (hereinafter referred to as the Program) was developed. Its main goal is to provide Russians and their descendants with the opportunity to return to their homeland.

According to the rules, the following categories of citizens can become participants in the Program:

• those who were born in the USSR, RSFSR, Russian Federation and their descendants;
• citizens of the Russian Federation who live in the territory of other states;
• persons who have Russian roots, but are citizens of other states.

Program participants are required to comply with several requirements. They should be:

• adults,
• capable,
• have a specialty and profession,
• have no criminal record or dangerous diseases.

Those who decide to resettle receive a participant’s certificate and the following types of assistance:

• one-time settlement allowance;
• compensation for relocation of all family members and luggage transportation;
• duty-free car import;
• monthly unemployment benefit for the first 6 months;
• assistance in employment;
• temporary housing;
• opportunity to obtain citizenship in a simplified manner.

Starting in 2012, the program became unlimited.

Legislative regulation of the issue

In 2006, a law was adopted that was created to provide comprehensive assistance to compatriots who have expressed a voluntary desire to return to their historical homeland. Federal Law No. 202 “On Forced Migrants” dated December 20, 1995 and Federal Law No. 99-FZ dated May 24, 1999 (as amended on July 23, 2013) “On the state policy of the Russian Federation regarding compatriots abroad” covers the most important points and guarantees displaced persons assistance in the following:

• obtaining Russian citizenship;
• payment to displaced persons of a certain amount of money as support during relocation;
• preferential terms for mortgage lending.

Briefly about mortgages

Not every family has the opportunity to purchase housing with their own money. One way to find funds is through mortgage lending. At its core, it is a cash loan that you take out from a bank under certain conditions.

A mortgage can be issued for a period from several months to several years. The benefit of the banking institution is that you repay the loan with interest. In some cases, if the rate is too high, at the end of the term it turns out that you paid twice the amount that was originally quoted for the apartment.

Together with banks, the Russian state supports certain categories of citizens for whom even the most favorable lending conditions may be unaffordable. Typically, young or low-income families, military personnel, doctors and teachers fall into the preferential category. This also includes immigrants and compatriots. They are provided with assistance within the framework of the developed Resettlement Program as an incentive to change their place of residence and subject to the fulfillment of all requirements.

Who can count on preferential loans

A big advantage of participating in the Program is the accelerated procedure for obtaining Russian citizenship, which gives immigrants equal rights to citizens of the Russian Federation. Although they can count on some benefits already at the stage of legalization, after receiving a Program participant certificate.

The issue of mortgage lending for newcomers to the Russian Federation is being actively discussed at all levels of government. But for now, they can apply for a loan on the same basis as other preferential categories of citizens.

In order for the loan to become available, you must register in the Program and receive a certificate of participation. Please note that banks only provide loans on preferential terms in 43 regions. For example, it is not possible to purchase housing with state support in Moscow or St. Petersburg.

What requirements do candidates need to meet?

The future borrower must meet the following requirements:

• not to be convicted;
• obtain migrant status;
• settle in one of the regions that take part in the Program;
• be recognized as a person in need of housing;
• have a permanent job;
• show stable income.

As already mentioned, there is no separate preferential lending project for immigrants. But if a newcomer falls into one of the preferential categories, he can also count on state support in resolving the housing issue.

Such applicants include:

• young families (one spouse is under 35 years old);
• families falling into the category of large families;
• families who live in an apartment or house that is in disrepair, in communal apartments and dormitories;
• military;
• young teachers.

All these groups of people are united by the need to improve their living conditions and the inability to do this at their own expense.

Each category has its own support option:

• young families can count on a reduced interest rate or receive a subsidy that can be spent on a down payment;
• families with large families receive reimbursement of part of the loan amount from the state and low interest rates;
• military - for partial coverage of the loan by the state;
• young teachers - at low interest rates.

Other families who do not have their own living space can also resort to the preferential lending program if the one in which they live does not meet the standards.

How to get a mortgage loan

The procedure for applying for a mortgage on preferential terms for immigrants is no different from that of other categories of citizens. In this process, just contacting the bank will not be enough. First, you will have to obtain a certificate of participation in the Resettlement Program and go through the legalization procedure in the Russian Federation. Only after this will it be possible to move on to the next stages.

Contacting the bank

The first step is to find a home for which you will apply for funds from a lender.

The bank issues funds only for a specific object, which in the agreement will act as collateral.

A mortgage loan is most often issued on these terms.

The application is submitted in the form of a standard form, which you fill out at the financial institution. It is accompanied by the necessary package of papers. Review of the application may take several days. If the decision is positive, you will be invited to sign the contract.

Package of documents

Pay special attention to the package of papers that will need to be attached to the application:

1. Passport or residence permit.
2. Certificate confirming income.
3. A copy of the work book.
4. A document that confirms your membership in a preferential category.
5. Information about family members.
6. Marriage certificate.
7. Birth certificates of children.
8. If you own real estate - documents for it.

Be prepared that the bank may require any other documents at its discretion. This may be needed as a guarantee of your solvency. It is very important that you have a crystal clear credit history before this.

Mortgage Insurance

Most banks require mandatory insurance of the life and health of the borrower. In some cases, disability insurance is provided. Insurance occurs at the time of signing the contract, that is, you do not need to bring the policy with you. The bank will do everything itself.

It is necessary to go through this procedure so that the insurance company can compensate the bank for costs in the event of an insured event. But you should also know that this clause of the contract does not reduce the cost of your loan, since the insurance premium will be summed up annually with the “body” of the loan and the interest calculated on it.

How to get a preferential mortgage for migrants

The algorithm of actions for those who are immigrants and want to “put down roots” in Russia is quite simple and looks like this:

1. Visit to the bank. The applicant will need to fill out a borrower questionnaire, answering all the questions from the loan specialist. It is also necessary to provide all the necessary documents to initiate a bank verification of the applicant’s compliance with the requirements of the financial institution.
2. Waiting for a decision. Banks usually issue a verdict within 24 hours, but in some situations a week-long wait is possible.
3. Selecting suitable real estate. After receiving approval from the bank, it is necessary to find an apartment or house that will meet not only the financial capabilities of the migrant, but also the requirements of the mortgage holder.
4. Drawing up and signing a preliminary purchase and sale agreement. This document guarantees the parties to a future transaction that it will definitely take place. The agreement is also the basis for the bank when applying for a mortgage loan.
5. Registration of a mortgage. The loan and purchase and sale papers are signed on the same day, which makes life much easier for both the seller and the buyer.
6. Registration of ownership of real estate. The displaced person receives a document confirming that he is the owner of the residential premises with limited rights until the mortgage is fully repaid.
7. Transfer of property as collateral to the bank.
8. Registration of mortgage benefits. State financial assistance is transferred to pay off the mortgage.

Where to contact

Credit and financial organizations are directly involved in the allocation of funds, so to obtain a mortgage for immigrants, you must contact banks. But if there are circumstances that allow you to count on government preferences, you must initially contact the administration or municipality of your locality. The terms of preferential mortgages for migrants are more favorable than those provided in the general order, so you need to try to find a “hook” to enter the category of beneficiaries.

Required documents

If the decision to participate in mortgage lending has been made, and the applicant meets all the requirements, then it is necessary to start collecting the papers needed for registration:

• Application form for a housing loan from Sberbank;
• Russian Federation passport (citizenship is required);
• certificate of resettlement program participant;
• migrant's certificate;
• a copy of the employment record with a mandatory record from the employer that the employee is currently working;
• 2NDFL certificate, which determines the financial status of the applicant and directly affects the maximum loan amount for approval;
• extract from the house register;
• certificates confirming the presence of family and dependents (marriage, children, divorce, adoption, etc.);
• documents confirming the applicant’s special status (poor, in need of improved living conditions, having many children, etc.).

Terms of consideration

The processing time for each mortgage loan application is individual and very flexible. In most cases, verification of the provided documents and the identity of the applicant does not take more than 1-2 days. But sometimes, depending on the workload of the financial institution and the number of documents requiring verification, the processing time for the application may take a whole week. Therefore, it is very important to provide the bank with a complete package of papers, prepared accordingly, in order to avoid repeated submission of documents and verification.

In which regions does preferential lending apply?

You can get a loan to buy housing with government support only in those constituent entities of the Russian Federation that take part in the Resettlement Program. But even in these regions, it is not possible to claim benefits in all localities. Cities with a population of over a million and those where the population density is too high do not provide migrants with the opportunity to buy an apartment on special terms.

Before you implement your plan to change your place of residence, check out the list of regions in which you can get a preferential mortgage:

• Buryatia,
• Mari El Republic,
• Mordovia,
• Altai, Kamchatka, Krasnoyarsk, Primorsky, Transbaikal, Khabarovsk territories,
• Voronezh, Amur, Irkutsk, Kaluga, Kemerovo, Kaliningrad, Arkhangelsk, Kursk, Kostroma, Murmansk regions,
• Jewish autonomy,
• Yamalo-Nenets Autonomous Okrug.

A total of 43 regions are registered.

Preferential lending conditions not at the state level

Non-state mortgages on preferential terms involve a reduction in interest rates and other preferences for borrowers, but they are only provided by individual private and commercial banking institutions. You can get a preferential loan for:

• purchase of ready-made housing,
• purchasing an apartment in a building that is under construction,
• construction of a private house.

Such programs operate in all parts of Russia, but with different conditions. They depend on the market value of the housing stock of the city in which the borrower lives.

The biggest difference between state benefits and non-state ones is the fact that the former are provided for a rather narrow circle of candidates (most often these are socially vulnerable sections of the population) and relate only to strictly limited objects. In the second case, preferential mortgages are available to a wider range of people, but there are no longer any restrictions on what exactly can be purchased on preferential terms.

Questions from readers

FAQ

Anna: Good afternoon. We want to apply for a rural mortgage in the amount of 1.5 million to purchase a house with land, but financing has run out. Your website has resumed accepting applications, but it states that only apartments are included in the list. That is, a mortgage cannot be issued for a finished house, do I understand correctly?

Maria Yuryevna Sokhan: Hello, that’s right. Bank Dom.rf has resumed accepting applications. But only for apartments under construction in rural areas. Applications for secondary housing, including houses with a plot of land, are not considered. But you can refinance a previously taken out mortgage for a finished home.

Current mortgage rates for today. Rates including discounts (life insurance, young family, salary earner, PV>20%, electronic registration, etc.)

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Author:

Maria Yurievna Sokhan

Publication dateApril 28, 202April 29, 2021

Registration of a mortgage for foreign citizens in the Russian Federation

Considering that cooperation with foreigners on lending issues entails some risk for banks, many lenders are tightening their requirements as much as possible.

Mortgages for immigrants who have not yet received Russian civil status are more realistic in representative offices of foreign financial institutions in Russia. In most Russian banks, the main requirement is Russian citizenship.

Commercial banking institutions can lend funds to the applicant only on the condition that he is a taxpayer in the Russian Federation. This means that he has signed an official contract with the employer, has permission to work in Russia and can provide all supporting documents.

It should be remembered that a loan for housing migrants will not have favorable conditions: some lenders set additional requirements, others excessively inflate the rate or down payment.

In conclusion, it should be recalled once again that there are no special programs for migrants when purchasing housing in Russia yet. You can receive benefits when applying for a mortgage on the same basis as for other categories of socially vulnerable citizens.

Non-state preferential mortgage

IDPs can also get a mortgage under various non-state programs. They are provided by large companies for their employees. Thus, persons who have moved to Russia and have the appropriate education and experience can get work in such organizations. As a rule, to receive such a preferential loan, you need to work for a company for a certain period of time and establish yourself as a good and responsible specialist. Then the company will be interested in his further work and may offer a preferential program.