When can a military member take out a mortgage? Which major banks participate in the military mortgage program? Who is eligible to receive a military mortgage?
Purchasing your own home is an important issue for a military personnel. It becomes even more relevant after marriage and the birth of a child. The government is trying to provide housing for military personnel; now it is possible to purchase an apartment on credit using the developed state program - military mortgage. It has existed for more than ten years and with its help many have managed to become property owners.
What is a military mortgage
The program is designed to replace the distribution of apartments one by one with the opportunity to buy real estate on credit using a targeted housing loan (CHL). The created mortgage for military personnel is a tool for obtaining residential real estate within the framework of the state program for providing affordable housing and is designed to minimize the financial burden on the military personnel when purchasing housing.
Military mortgage - conditions of provision
The legislation provides for the repayment of the entire amount or a significant part of the military serviceman’s debt obligations on acquired property from public funds. The provision of military mortgages is provided to participants of the savings-mortgage system. The conditions for issuing credit funds may differ between banks in terms of the interest rate and down payment, but the general ones are:
- loans are issued from the age of 21;
- the maximum amount of borrowed funds is 2,200,000 rubles;
- The loan period is from three to twenty years or until the borrower turns 45 years old.
Who is eligible for a military mortgage?
Military personnel can use the program after writing a report and submitting it to the unit commander. Enrollment in the register of participants occurs ten days after the report is received by the Federal State Public Institution Rosvoenipoteka. Who is entitled to a military mortgage? The program came into effect on January 1, 2015, so all calculations begin from this date. The basis for inclusion in the register is military service under a contract. The following may be included in the register:
- university graduates who graduated after the program was accepted, but signed a contract before entering the study;
- officers who entered into a contract after the law was passed;
- midshipmen and warrant officers who served under a contract for at least three years after the entry into force of the program;
- soldiers, sailors, sergeants and petty officers who entered into a second contract after the program began.
Military mortgage if you own a home
Previously, if there was residential real estate, it was impossible for a serviceman to receive an apartment according to the distribution according to the waiting list. The essence of a military mortgage is that the purchase of residential real estate under mortgage lending is available to all program participants, regardless of whether they have already purchased housing with their own money or received it as an inheritance.
Changes in military mortgages in 2017
This year, innovations have come into force that simplify the purchase of real estate for military personnel. What is the Federal Law on Military Mortgage with the latest amendments? There are three main areas of improvement:
- The annual savings contribution will be indexed, its size will increase to 260 thousand rubles.
- military spouses will be able to use the total amount of savings to apply for a mortgage loan to purchase one piece of real estate;
- when paying additional funds at the time of dismissal, the availability of their own real estate will not be taken into account.
How to get a military mortgage
The opportunity to purchase residential real estate under the program is provided, depending on rank, after 6 years or three years (for officers) after concluding a contract for service in the armed forces. Obtaining a mortgage for military personnel can be divided into three stages:
- 3 years before the right to enter the system;
- 3 years before the funds can be used;
- registration of transactions for the purchase and lending of real estate.
Participation in NIS
The basis of the created state program, the mortgage lending instrument, is the savings-mortgage housing system for military personnel. After a participant is included in the register, a personal account is opened for him, to which the approved amount is credited annually. The source of replenishment of the account is funds from the federal budget. The size of enrollment does not depend on military rank and region of service.
The replenishment amount is periodically indexed: the size of the increase in the annual contribution is affected by changes in the cost of housing and the level of inflation. Before retirement, a significant amount accumulates in the participant’s account, for which one can purchase a good apartment. The controlling and executive body of the system is the Federal State Public Institution Rosvoenipoteka, which is part of the Ministry of Defense of the Russian Federation. On the official website of the structure, a participant can register and receive information about the status of the account.
Choosing housing
The legislation does not provide for linking the choice of real estate to a specific region; housing with a mortgage must be located on the territory of Russia. You can take out a mortgage loan for:
- purchases of finished housing;
- purchasing apartments in new buildings from developers using the equity participation system;
- for the construction of an individual residential building.
Program participants need to calculate their financial capabilities, because the funds accumulated through the system are quite enough to buy an apartment. In Moscow and the region, in St. Petersburg, the cost of real estate is high, so those who decide to buy an apartment in these cities will need to contribute additional funds of their own.
Military mortgage calculation
The participant receives the right to use savings after being registered for three years. The amount accumulated by this time is, as a rule, sufficient to make the down payment. An online military mortgage calculator will help a potential borrower figure out the amount of savings, down payment, and monthly payments.
To receive an approximate calculation of a housing loan, you must enter the date of registration of the program participant and the cost of the desired housing. The system itself will calculate the amount of accumulated funds, the down payment, monthly payments and, if there are not enough funds in the personal account, it will indicate the amount of your own money required to deposit.
Which bank gives military mortgages?
Borrowers have the right to choose a financial institution to apply for a home loan after comparing loan conditions. All banks working with military mortgages offer housing loans on preferential terms and at low interest rates. These include:
- Svyaz-Bank;
- Sberbank of Russia;
- VTB 24;
- Gazprombank;
- Housing Mortgage Lending Agency;
- Opening.
Registration of a military mortgage
After registration, after three years, the participant can use funds from his personal account. Registration of a mortgage for a serviceman of the RF Armed Forces continues with the issuance of a Certificate of entitlement to receive a targeted housing loan. To do this, the serviceman must write a report again and submit it to the leadership of the military unit.
Documents for mortgage
After deciding to use the accumulated funds, the citizen needs to study the conditions of the banks that provide loans under the program and choose the best option for himself. The borrower needs to contact a financial institution to obtain a preliminary decision - to issue a housing loan. What documents are needed for a military mortgage to obtain a certificate? In addition to the report, the serviceman must submit a package of documents to Rosvoenipotek:
- copies of all pages of the passport;
- a copy of the loan agreement;
- a copy of the account opening agreement.
Tracking a package of documents on the Rosvoenipoteka website
The process of reviewing documents by the Ministry of Defense takes up to three months. The service of the official website of Rosvoenipoteka provides the opportunity for participants to track the stages of document progress when they:
- received;
- on legal examination;
- submitted for signature;
- sent.
After sending, you can receive information about the location of the documents on the official website of the courier service using the invoice number. The sent certificate is received by the bank, it indicates the amount that has been accumulated, the amount of monthly deductions and the maximum lending period. After receiving the certificate, the credit institution can issue a mortgage for the military.
Buying an apartment with a military mortgage
The next step in order to buy an apartment with a military mortgage is collecting documents for the purchased property. The borrower needs to have the property assessed with the help of an independent expert. The conclusion of a property insurance contract, the purchase and sale of housing and lending occurs simultaneously. After this stage, registration of ownership occurs.
Who pays the military mortgage?
The available balance of funds on the participant’s personal account is credited towards the down payment after signing the mortgage agreement and transferring the documents to Rosvoenipoteka. Monthly payments on a military mortgage are transferred to the bank to repay the loan and accrued interest by Rosvoenipoteka in the amount of 1/12 of the amount of annual savings receipts. Often, to repay the debt, a serviceman does not need to contribute his own funds; all his loan costs consist of:
- payment for expert assessment of the object;
- insurance costs;
- payment for notary services.
Military mortgage upon dismissal
The mortgage created for military personnel under a contract is designed for the long-term nature of military service. Its main goal is to provide housing for program participants. A mortgage upon dismissal of a serviceman after twenty years of service involves the payment of the full amount of funds accumulated in the personal account to the participant, if he did not use their advance to purchase real estate. The remainder of the funds is payable to the member or used to pay off his mortgage debt if he is separated after ten years of service due to deteriorating health.
At your own request
Serious financial consequences arise for a service member who participates in the program if a contract violation occurs or a decision is made to leave the Armed Forces before the end of 20 years of service. Upon dismissal at one's own request, a military mortgage is repaid independently, and the funds used from the savings system are subject to return to the Ministry of Defense.
For health
A military mortgage upon dismissal for health reasons provides for two consequences:
- Deterioration of health after ten years of service. The participant is entitled to compensation payments equal to the amount of savings for a full twenty years. With their help, the borrower can pay off the balance of the mortgage loan.
- Deterioration of health before reaching ten years of service. In this case, the participant is forced to repay the debt on his own and return the used CZL funds to the state within ten years.
According to OSHM
A mortgage upon dismissal under OSHM will have different consequences for program participants. Dismissal in this case is also considered as a reason independent of the employee, therefore:
- Those who have served for more than ten years do not have financial obligations to the state, but must repay the remaining mortgage debt on their own.
- If the service life is less than ten years, the mortgage program participant must repay the balance of the mortgage loan and return the used amount of savings to the Ministry of Defense over ten years.
Pros and cons of military mortgages
The program has the following advantages:
- You can get residential real estate at the beginning of your service using government funds without investing your savings, even if you have your own home.
- The right to receive official housing when moving if you have your own is retained.
Mortgages for military personnel have disadvantages:
- The need to return funds to the state and repay the loan debt on your own upon dismissal without good reason or before reaching 10 years of service.
- A complex mechanism for selling purchased real estate, because it is pledged by Rosvoenipoteka and the bank. The encumbrance can be removed after the debt is closed.
Video: buying an apartment for military personnel with a mortgage
Providing housing for different categories of the population and, in particular, military personnel is still one of the most pressing problems of Russian society. Until December 2015, apartments for military personnel were distributed by the Housing Department of the Russian Ministry of Defense. But on January 1, 2016, a new law came into force: obtaining housing on a first-come, first-served basis was replaced by a mortgage for military personnel under a contract. Its conditions in 2019 apply to certain categories of defenders of the Motherland. Let's look at them and find out who can count on a military mortgage.
How does a mortgage work for contract workers?
There has been a military mortgage with government support for more than 10 years. At the same time, all military personnel are provided with an individual approach when creating a loan plan.
A mortgage for military contractors is similar to a mortgage agreement with a bank, however, the first amount is transferred to the borrower’s account from the state budget, and further monthly payments are made by the Ministry of Defense.
The main condition for participation in this program is the funded mortgage system (the abbreviation NIS is often used).
After joining the NIS, funds transferred by the state for the purchase of housing begin to accumulate on the serviceman’s personal account. They are transferred throughout their entire service life - twenty years. However, there is a limitation on the period of their use: a military mortgage for military personnel under a contract allows you to purchase a home after at least three years of service.
Special conditions
A situation may arise when the funds available in the account have not been spent. In this case, the serviceman has the right to use them for any purpose. However, like any program, this state system has some conditions that should be taken into account before using the accumulated finances.
Briefly, these conditions are formulated as follows:
- As the service life increases, the amount of subsidies increases.
- Families with three or more children receive an advantage in obtaining a military mortgage.
- You can use government assistance to purchase housing only once.
Who is it for?
Mortgages for military personnel under a contract apply to military personnel of the following categories:
- Warrant officers, officers who entered into long-term contracts after January 1, 2005.
- Graduates of military universities who serve on long-term contracts starting in 2005 and in later years.
- Military personnel in the position of midshipman or warrant officer who have served three or more years. First contract.
- Sailors, soldiers, sergeants, foremen who took office in 2005 and later. Re-contract.
Not only those who are serving, but also military personnel who were forced to leave the army for the following reasons can receive a military mortgage loan:
- dismissal for health reasons;
- dismissal for family reasons;
- resignation due to staffing and organizational changes;
- reaching the age limit.
There is also a special condition for military personnel who entered into a contract before 2005. They have the right to participate in the mortgage lending program, but without opening a savings account.
About the advantages and disadvantages
A mortgage for NIS participants has the following advantages:
- You can find housing in any region of Russia.
- Fixed interest rate. Its value is not affected by either the repayment period or the amount of the down payment.
- Not only senior officers, but also young military personnel whose age does not exceed 25 years can purchase housing.
- Military mortgages for contract soldiers are allowed.
- Guarantee of government payments. The participant’s personal account will be replenished even if the loan is repaid early.
- Military personnel who previously inherited residential real estate, received it as a gift, or purchased it are eligible for a subsidy.
The only drawback (it would be more appropriate to use the word “risk” here) can be considered dismissal from the armed forces. If this happened due to circumstances discrediting the serviceman, he is obliged to repay the amounts spent on repaying the loan by the authorized federal body within a ten-year period. The same applies to military personnel with less than 10 years of service who were dismissed due to regular circumstances. Payments must be made monthly, interest is charged only on the outstanding balance.
Conditions for contract military personnel
This issue was partially touched upon above. Let's add only the main points.
Firstly, you should know that when issuing such a loan, the composition of the family does not affect the amount of the amount. Even if a serviceman has five rather than one child, the size of the bank loan will be standard. In this case, the living space is registered in the name of the serviceman. It’s a different matter when maternity capital is used to repay the loan: then housing is divided equally between family members.
Secondly, if the spouses are officers, both of them can legally become participants in the NIS. But you won’t be able to get one apartment for two targeted housing loans.
Thirdly, using a military mortgage to build a house is not provided for by its original conditions. But this can be done by retiring from the armed forces upon reaching the age limit. After all, you can spend the funds remaining in your savings account at your own discretion.
The volume of lending is a very important factor. The class of housing that will allow contract servicemen to purchase a mortgage depends on it. The terms of the program from this point of view are as follows:
- The maximum loan amount is no more than 2.4 million rubles. Before 2016, this figure was lower – 2.4 million.
- The borrower must have his own funds, adding which to those accumulated under the NIS program, he will be able to make a down payment in the amount of 20% of the appraised value of the housing. This is a very important point for those who want to know how to get a military mortgage for a contractor under the terms of 2017.
- The interest rate cannot exceed 12.5% per annum. Typically this figure ranges from 8-12%.
How to get a mortgage
To do this, you must complete the following steps:
- Draw up a report addressed to your unit commander about your desire to become a participant in the state military mortgage lending program.
It is important to know: officers are not required to do this, since information about them is already in the register.
- After this, the High Command of the Armed Forces checks all participants using the available lists and, based on the identified need, generates a list of documents that is transferred to the housing department.
- The military man who submitted the report is assigned a personal registration number. He receives it in a notification.
- Next, on the basis of the NIS, the state support program “Rosvoenipoteka” opens an account for the serviceman.
- Receipts to this account will begin immediately after the report is registered in the unit.
- The service member then selects a bank to receive funds.
- After this, the serviceman chooses housing. A military mortgage allows you to purchase an apartment on both the primary and secondary markets.
- An agreement is concluded with the bank.
- A serviceman purchases housing through a mortgage program.
Participating banks
Having learned how a contractor can get a military mortgage, you can begin choosing a lending institution. The data in the table below will allow you to navigate the financial market segment under consideration.
All banks whose list of programs includes military mortgages provide loans only to citizens of the Russian Federation aged 18-45 years serving in the army on a contract basis.
To summarize, it must be said that the government’s cooperation with financial organizations in the system of preferential lending to military personnel is an effective measure to resolve the problems of Russian citizens with the purchase of personal housing.
Changes in military mortgage: Video
Military mortgage is a government program aimed at purchasing housing for military personnel within the framework of the savings-mortgage system (NIS). In this article we will consider all the cases that may arise when a serviceman who has taken out a military mortgage is dismissed.
The essence of the program
In order to receive a preferential loan, a military personnel must become a participant in the savings system. The register of participants must include all persons who graduated from a military educational institution and signed the first contract for military service after January 1, 2005. For such inclusion in the register, the fact of receiving an officer rank is sufficient.
Persons who graduated from educational institutions before January 1, 2005 are included on a voluntary basis. The basis for entry is the report.
The essence of the savings system consists in the fact that its participants receive a certain amount of money into their personal account. Their size is the same for everyone and does not depend on rank, position held or length of service. The amount of revenue changes every year as a result of indexation.
- After three years, a serviceman who is a member of the savings system has the right to submit a report for a targeted housing loan (CHL). The result of reviewing the report is that the serviceman receives a certificate. Its validity period is six months from the date of signing.
- After providing the certificate, you need to select a property. A prerequisite is that the purchased housing meets the requirements of the Ministry of Defense of the Russian Federation.
- In order to apply for a loan, you need to contact the bank that operates within the framework of this military mortgage program, and open an account with it, as well as transfer the accumulated funds. This money will be used to pay the down payment. After completing the above steps, the serviceman provides a package of documents necessary to obtain a mortgage. It is also worth noting that housing must meet the bank’s requirements.
- As soon as the application is approved, a CZL agreement is concluded, the parties to which are the military personnel, the bank, and the federal economic institution Rosvoenipoteka. The lender and the borrower, in turn, enter into a separate loan agreement.
- The loan is repaid using state budget resources. The payment amount cannot exceed 1/12 of the military member’s savings contribution.
What happens to savings upon dismissal?
Many military personnel wonder what will happen to their savings if they leave the military. The answer to this question depends on the reason for the dismissal.
Reasons for dismissal may be so-called preferential and others. Preferential reasons for dismissal include various organizational and staffing measures, namely:
- the serviceman cannot maintain his previous position for reasons beyond his control, and he refuses the offered lower or higher position;
- the staffing unit where he worked was reduced;
- the serviceman was declared unfit for military service.
In addition, valid reasons for dismissal include the following:
- health problems that may interfere with the performance of military duties;
- reaching a certain age;
- family circumstances.
If a serviceman who retired for one of the above reasons did not manage to purchase an apartment under the program before his departure, then he has the right to the accumulated and additional funds only if his total term of service exceeds ten years. When, when the length of service is more than twenty years, the serviceman can use the savings in the account at his personal discretion, and he also has the right to additional funds. If the length of service is within 10-20 years can use the accumulated funds.
To receive funds you must complete the following steps:
- after reading the dismissal order, the serviceman writes an application addressed to the head of the military unit for the transfer of funds from the savings account;
- the unit commander provides the necessary information about the serviceman to the military command and control authorities, they, in turn, to the FHKU "Rosvoenipoteka";
- The application can be considered within 30 days, then the money is transferred to the details that the serviceman indicated in the application.
The right to additional funds is available to persons who do not use residential real estate under a social tenancy agreement and do not own other housing.
If such a serviceman managed to purchase a mortgage, then he is not obligated to return all the money to the CJZ, both those that were used for the down payment on the mortgage, and those that were used to repay regular payments according to the schedule and the loan agreement.
The remaining debt after dismissal can be paid off with funds that supplement savings. When additional payments are not due or are insufficient, the serviceman pays off the debt using other personal funds.
The encumbrance on the part of the state is removed upon dismissal, and the borrower decides on the issue of removing the encumbrance on the part of the bank independently after full repayment of the loan.
Upon dismissal of one's own free will, due to a violation of the terms of the contract, and also when the length of service is less than 10 years, the serviceman loses his right to savings within the framework of targeted housing financing. He must return all funds, including the first installment and monthly payments from the federal budget, to the state.
Debt repayment may not be one-time in nature. If a serviceman does not have the opportunity to return all the money at once, then he will do this over a certain period, but not more than 10 years, and in accordance with the schedule formed by the Federal State Institution "Rosvoenipoteka". In this case, the balance of the debt will be charged an interest rate equal to the discount rate of the Central Bank of the Russian Federation. The rate taken into account is the rate that was on the date when the basis for excluding the military personnel from the register of NIS participants arose.
On the part of the state, the encumbrance will be removed from the real estate when the former serviceman pays off his debt in full under the targeted housing financing agreement.
The borrower repays the entire remaining loan amount independently in accordance with the schedule provided by the bank. Accordingly, the encumbrance on the part of the bank will be excluded from the register after full repayment and closure of the loan agreement.
If a serviceman does not repay a debt
In a situation where a former serviceman does not repay his debt under the LLC, the Federal State Institution "Rosvoenipoteka" has the right to forcefully sell the housing that is pledged by applying to the courts. The residential premises will be sold forcibly within the framework of current Russian legislation.
After sale, the proceeds will be used to:
- repayment of debt on CLP and bank loan;
- payment of expenses associated with forced sale;
- legal costs.
If after forced sale and all mandatory repayments there is a balance of funds, then it is credited to the personal bank account of the former serviceman, opened within the framework of the savings mortgage system. In a situation where the proceeds were not enough to repay all payments, the person remains a debtor. The debt is repaid in accordance with the procedure established by law.
What happens when a discharged service member enters into a new contract?
A serviceman who has left military service can enter into a new contract. If military service is provided for by law in this federal body, then the serviceman can be re-included in the register of the savings mortgage system. The basis for this will be a new contract.
If a serviceman was dismissed from his first place of service due to family circumstances, as a result of health conditions or organizational and staffing measures, then the accrual of contributions is resumed. For the period when the person was not in military service, contributions are not accrued. The funds that had already been accumulated before dismissal are used to pay off the debt under the targeted housing loan agreement. If there is a balance of funds after repayment, they will also be taken into account in the new savings account.
When dismissal occurs at will or as a result of a violation of the terms of the contract, the money accumulated in the account is not restored. After re-registration, the funds are used to pay off the debt on the target mortgage loan (if the mortgage has been issued).
Repayment of a mortgage from a bank at the expense of the state budget is possible when the debt on the central mortgage loan is repaid, including accrued interest and penalties.
Thus, the only risk-free option for obtaining a mortgage is the situation when a military personnel has served 20 years or more. Even if a serviceman is dismissed, he will not bear any costs. If the length of service at the time of dismissal is less than 10 years, the former serviceman may be left with debt or lose his apartment. Therefore, when deciding on this option of purchasing real estate, it is worth weighing all the risks. On the other hand, in recent years, real estate prices have been rising at a faster pace than the indexation of payments. Consequently, no one can guarantee that a serviceman will be able to buy normal housing by postponing the purchase until he has served 20 years.
Conditions and requirements for obtaining a military serviceman's mortgage under a contract in 2018.
Conscripted military personnel are given the opportunity to continue serving in the army as contract soldiers. It is enough just to formalize an agreement with the Ministry of Defense. Serving in the armed forces provides a number of advantages, one of which is the opportunity to obtain a preferential mortgage. What are the conditions and requirements for obtaining a mortgage for military personnel under a contract in 2018, it is necessary to explain in detail.
Basic conditions for obtaining a mortgage for military personnel
The Ministry of Defense concludes a contract with military personnel for a duration of one to 10 years or indefinitely. In exceptional cases, it is possible to provide for a service period of less than 1 year. Not all contract soldiers are legally allowed to take advantage of preferential military mortgages.
What conditions must the borrower meet?
Law No. 117-FZ on the savings mortgage system (NIS) limits the circle of persons applying for preferential housing. Entry into the program must be preceded by three years of service.
A person wishing to become a participant in the preferential mortgage program must submit a report on inclusion. By the time you contact the bank, it must be listed in the Rosvoenipoteka Federal State Institution database.
A feature of this type of mortgage lending is that there are no requirements for family composition or the need to improve living conditions.
An important condition is the age of the borrower: he must be 21 years old, and at the time of full repayment of the debt he must not be 45 years old.
What kind of real estate is purchased with a military mortgage?
Members of the active army are given the right to choose their future housing. The choice is possible between:
- Individual residential building in the private sector;
- New building;
- A secondary apartment.
Specific requirements for a residential property differ from bank to bank, but there are general rules for choosing an apartment:
- Availability of amenities in the form of a kitchen area and toilet.
- The level of wear and tear on the house should be small (Stalinka, Khrushchev, Brezhnevka buildings are considered unsuitable due to the age of their construction).
- The house should not be recognized as unsafe (information is to be clarified with the local administration).
- The house has a reinforced concrete foundation or a stone foundation, and the same interfloor ceilings. Walls - concrete or brick.
- The property is free from the rights of third parties, not mortgaged or encumbered.
New buildings are purchased under an equity participation agreement until changes are made to the current legislation.
How to pre-calculate a military mortgage
A targeted loan for the purchase of real estate is calculated for a military personnel based on the following data:
- The amount of savings in the personal account;
- Amounts of own funds;
- Bank loan rate;
- Estimated down payment;
- Deadline for repayment of debt to the bank.
You need to know that the loan size is limited to an amount of 2.33 million rubles and less, if the cost of housing is expected to be higher, the borrower himself pays the difference.
Registration procedure and required documents
Inclusion in the Military Mortgage program occurs in two ways:
- Voluntarily, after submitting a report to your command;
- Mandatory (this applies to graduates of educational institutions).
What is the procedure for applying
The main starting point is your immediate superiors. The applicant for benefits in purchasing a home submits a report to the commander, and he passes it on to the personnel service. From there, the application with the attached documents goes to the RUZHO (housing administration) and then to the Housing Department of the Ministry of Defense.
The department registers the application and assigns an account number. A month later, the applicant is sent a notification with a number.
There is no other procedure for inclusion in the lists.
What documents are required?
To be included in the register of participating persons, the leadership of the unit or division requires the applicant’s report and materials of his personal file, a completed form of a special individual card.
Directly to conclude an agreement with the bank you will need:
- Certificate of program participant;
- Passport of the borrower and spouse;
- Certificate of marriage or divorce;
- Notarial agreement;
- Documentation for the purchased residential premises, including certificates of absence of registered persons and debts for payment of housing and communal services;
- Extract from Rosreestr about the legal claims of third parties in relation to the object.
Time frame for consideration of the issue
When grounds for inclusion in the register (report) arise, the command of the unit is obliged to send a package of documents within three months. If for some reason this deadline is missed, the person responsible for submitting the data provides an explanation.
The bank, having received all the necessary documentation, makes a decision within 5-7 days.
How to choose a house with a military mortgage
When choosing a new building, the search for an apartment becomes easier. Banks offering military loans accredit houses under construction and work directly with developers. The developer’s employees handle the paperwork themselves, which eliminates additional costs for real estate services.
With the secondary market, homeowners sometimes have difficulties. Not everyone agrees to wait for payment after registering the transfer of rights to property.
It is important to familiarize yourself with the bank’s requirements for a residential property in advance and check the premises you are interested in for compliance immediately upon inspection.
After the issuance of the NIS participant certificate, a period of 2 to 6 months is set for the purchase of housing, before the end of which it is necessary to select a home and conclude a mortgage loan agreement.
How to calculate a military mortgage
Spending money accumulated in a personal account is allowed only after three years have passed from the date of receipt of the status of an NIS participant. Every year the account increases by 220 thousand rubles. Over a three-year period, savings will amount to 660 thousand. If you do not contribute your own funds, then the department will pay 3,300 thousand rubles for 15 years of service before reaching the age limit (45 years). This is the maximum amount of government subsidy.
If there are more than 2 children, a serviceman has a chance to add maternity capital funds to this amount.
On bank websites you can find a “mortgage calculator” service. With its help, you can substitute the data and see the preliminary calculation. The credit manager will provide more specific figures.
Difficulties in obtaining a mortgage for military personnel under contract
Military personnel face some difficulties when applying for a loan:
- The complexity of the procedure, the receipt of money by the seller after registration;
- In some cases, a higher bank interest rate compared to other loan products (for families with children, for some new buildings);
- A limited range of credit institutions accredited by the Ministry of Defense;
- The loan term is reduced for those whose age is closer to the maximum age limit for military service.
NIS “ties” its participants to their place of service. In order not to lose the mortgage benefit, you have to serve until the end of the allotted period.
Advantages of a mortgage loan for military contractors
The advantages of a special mortgage program are as follows:
- No requirement to confirm income;
- Minor restrictions regarding the selected properties;
- There is no attachment to the place of service, housing is chosen in any city within the country at will;
- You do not have to need housing to receive the benefit;
- There are no extra processing fees.
Which banks provide military mortgages?
Banks accredited by the military department often have similar conditions, but there are also differences between similar products.
The state is interested in a reliable professional army. That is why it strives to make the conditions of military service as attractive as possible.
One of the key factors in making a positive decision about entering military service for future military personnel is the opportunity to join the NIS, so that later, in the near future, they can take advantage of the right to purchase their own housing under the military mortgage program.
Before the advent of the law on military mortgages, military personnel could become full owners of their apartments only after 20 years of service.
The old system did not offer military personnel the choices they have now. (new buildings with a military mortgage, houses on a plot of land, town houses, duplexes, apartments on the secondary market). Before the advent of the NIS law, military personnel were forced to be content with permanent housing built by order of the military departments, which often could not please the high quality.
The old system was imperfect compared to the new one - this is indirectly evidenced by the sharp popularity of the military profession after the advent of the new progressive state military mortgage program.
Mortgage for military personnel under contract: comparison of the new program and the old one
- New housing system (savings-mortgage system) conditionally divided military personnel into two categories: mandatory participants in the system and voluntary ones. At the same time, the system does not divide military personnel by military rank, length of service or position.
Therefore, the amounts in the accounts of all military personnel increase annually in equal proportions. Voluntary NIS participants are mostly contract workers (sergeants, petty officers, soldiers, sailors) who signed the second contract after January 1, 2005. A military mortgage for military personnel under a voluntary category contract involves submitting a report to include the serviceman in the NIS Register.
A report should also be prepared when a serviceman, already a participant in the system, wants to formalize and exercise the right to purchase housing. After receiving, the funds received from the Central Housing Loan are used to pay the down payment on a mortgage loan issued under the “military mortgage” program.
Conditions for obtaining a mortgage for military personnel under contract
A serviceman, according to the provisions of the military mortgage state program, can purchase an apartment in any Russian locality. The law does not oblige him to “become attached” to the military department and the geographical location where he is currently serving.
Mortgages for military personnel under a contract can only be issued by banks that are...
The NIS program, unlike the previously valid one, does not oblige military personnel to choose housing only on the secondary market.
Contractors have the right to purchase private houses, as well as apartments in newly built houses and in new buildings under construction. Providing housing for military personnel under a contract does not imply any restrictions on space.
Payment for the purchased housing is made by the bank that issued the loan to the NIS participant under the military mortgage program (NIS funds from the serviceman’s personal savings account are received by the bank in advance). The only thing that a military mortgage requires is. This is due to the fact that the mortgage loan is calculated, as a rule, until the age of 45 (since most military personnel try to obtain the maximum possible loan amount). The second necessary condition is the achievement of 10 calendar years of service by the time of dismissal according to the age limit, which gives the right upon dismissal from military service to receive funds that supplement savings for housing. These funds can be used by military personnel, including to pay off the balance of the mortgage loan, if there is still one at the time of dismissal due to the age limit.
A military mortgage issued to a serviceman under a contract is a smart decision, since it is a convenient and today the only real tool for contract soldiers who seek to improve the level of their social security. At the same time, it is necessary to take into account the fact that a military mortgage is not only an opportunity to buy your own apartment or house at the very beginning of your service. These are the most serious obligations and responsibilities that a serviceman assumes upon himself at the time of signing a targeted housing loan and loan agreement.