Living in your own home with children is the dream of many citizens of our country. As a rule, one’s own funds are not enough to implement it. To help families raising children, the state provides various subsidies and benefits, one of which is maternity capital. You can also use it to buy or build a house.
Maternity capital for building a house
Maternity capital for building a house in 2020 – conditions and requirements
You can make your life better and more comfortable in different ways. One option is to use maternity capital (MK) for this. Many families make a responsible, but correct and far-sighted decision - to build their own home with government subsidies.
It is clear that the amount of the benefit alone (the amount of maternity capital in 2020 is about 453 thousand rubles) is not enough to build a good house from the zero phase to the finishing stage. However, this money is quite enough to cover the basic costs of building materials.
Example
New frame-type houses, which are becoming increasingly popular in the European part of Russia, are built in 3-5 months. The cost of building materials (if you are going to build on your own) will not exceed 300-450 thousand rubles.
Maternity capital will cover this amount either in full or in large part. True, you will have to build the house and carry out the finishing on your own. But the bulk of the costs will be compensated by the state.
There are other options for using MK - repaying a loan taken for the purchase of real estate, compensation for construction funds. All these methods will be discussed in detail in a separate section of the article.
It must be remembered that the law equates the reconstruction of your home to construction. That is, if you want to expand the area of the house, add a floor, turn the attic into an attic, the costs of such events can also be covered with public money.
The main thing is to document all the work in order to provide the Pension Fund with evidence of the costs of constructing or reconstructing the building. It’s better to notify this organization in advance about your plans and agree on a subsequent refund or preliminary transfer of funds.
Please note this important detail!
The state will not reimburse money spent on repairs (updating communications, finishing facades, installing suspended ceilings or new windows). It is prohibited to direct family capital to such needs - apparently, repairs are not considered a way to improve living conditions.
So, the program to support families with 2 or more children will become a kind of financial foundation for you and a way to make your dream of a new spacious home come true.
We remind you that the Pension Fund transfers 50% of the funds for these needs within 1-2 months after contacting this organization. The balance of the amount is transferred to the account six months after submitting all the necessary documents.
Read more about all the options for using government subsidies in the article “How to use maternity capital.”
Important news on the topic:
President Putin proposed extending the maternity program until 2022. In addition, he proposed introducing a number of changes to its implementation. Now families who need it will be able to receive maternity capital funds within the first 1.5 years after the birth of a child - in the form of monthly payments of about 10,000 rubles.
Additionally, families can use maternity capital to care for a child during the preschool period, paying for the services of private kindergartens and nurseries.
Video on this topic:
Is it possible to get family capital to build a house without waiting 3 years?
This question concerns almost all owners of maternity capital. It is not always advisable and convenient to wait three years: you want to have a house now, and not in 3 years. In addition, during a period of economic instability, prices for building materials may double in a couple of years, which will negate all the benefits from the use of public funds.
Initially, the law “On additional measures of state support for families” did not provide for the premature sale of maternal capital funds at all. No circumstances could affect the payment period - only the child reaching the age of 3 years.
A little later the situation changed for the better.
In 2008, early use of family money became possible in the following cases:
- when funds are used to repay an existing loan for the purchase of a home or mortgage;
- when it is necessary to repay a loan taken for the construction of a house or its reconstruction.
In addition, in 2020, the ban on repaying the down payment on a mortgage before the child’s 3rd birthday was lifted.
In other words, if you urgently need housing, you should take the opportunity to take out a loan for construction or purchase and pay for it (partially, fully or as a down payment) with maternity capital funds.
You can also build a house now, and reimburse the construction costs later, after the child reaches the age of 3 years. Please note that in this case strict and formal documentation of construction costs is required.
Selling a house
There are various circumstances that may result in the need to sell a house in order to move to another area or exchange. There are 2 main options to consider:
- The situation when all the children have grown up and there are no minors among the owners with equal shares simplifies further actions. In this case, you only need to formalize the consent of all owners for the sale and have it officially certified by a notary.
- If there are children among the owners, permission from the guardianship authorities is required. Such a document can only be obtained from this organization if the child is allocated a similar share of other real estate. At the same time, living conditions should not deteriorate. It is allowed to provide money as compensation for the insufficiency of the allocated new share. This requires an assessment of the housing being sold and purchased. The difference must be placed into each child's account before reaching adulthood.
In the case of selling a house for the purpose of moving, when there are children among the owners, it is necessary to obtain permission from the guardianship authorities
Important! It is possible to obtain permission from the guardianship authorities to worsen living conditions only in one case, when the proceeds will be used for the treatment of one of the children.
The period during which it is impossible to sell a house built with MSK funds is not specified in any legislation.
If a house purchased with a loan is put up for sale and is still pledged to the bank, then it is necessary to obtain the consent of the lender. Without this, the deal cannot be completed.
One of the areas for using MSK funds is housing construction
One of the areas for using MSC funds is housing construction. You can do this either on your own or by hiring contractors. The chosen construction method affects the procedure for providing maternal capital. If the owners themselves are involved in the construction, then the money is allocated in 2 stages: 50% at first and 50% after confirmation of the intended use of the MSK. They are transferred by the Pension Fund to the account of future home owners. When concluding an agreement with builders, the entire amount of budget funds is immediately credited to the contractor’s account. In both cases, you can use government funds only after 3 years, when the right to receive a certificate arose. It is immediately permitted to use MSK for construction only when taking out a loan.
All options for using mat capital for building a house
I repeat once again - funds for self-building a house are not given in full at once. First, the family is given 50% of the maternity capital; the remaining money cannot be allocated earlier than 6 months from the date of the first issue.
When starting construction, you should allocate your budget in advance and calculate your expenses. This will avoid downtime during construction and conflicts with contractors.
Option 1. Construction on your own
Young families, after the birth of their second or third child, often decide to build a house themselves, without the help of professional builders. Of course, such an activity requires certain skills and free time.
You can, of course, build a house on weekends, but then the construction will take years. In order to cover (at least partially) the costs of building materials, you need to contact in advance the structural unit of the Pension Fund of the Russian Federation at your place of residence and registration.
It is also important that the land plot is registered as a property according to all the rules. Otherwise, problems with the legality of construction may arise. And litigation is the last thing a young family needs when they want to build spacious and comfortable housing for a quiet life away from the noise of the city.
The Pension Fund usually accommodates families in need of housing. The main condition for a positive decision to transfer funds to the bank account of one of the parents is the submission of an application in full form, along with the necessary documents.
A building permit is issued by the department of architecture of the city in which you live. Such a document should be obtained before the start of preparatory work on the land plot.
Option 2. Order turnkey construction using a contractor
Good, but by definition more expensive. By engaging professionals, you save time and improve the quality of construction work, but you lose money. Maternity capital allows you to reduce personal expenses by an order of magnitude.
The decision to transfer funds to a contracting organization is made, again, by employees of the Pension Fund. The construction company itself doesn’t care who transfers funds to their account, except that transactions with family money are always a little longer and more troublesome.
In general, contractors are willing to accept capital funds as payment for services. Even if one organization says “no” to your proposal to pay for construction with public money, the other will definitely agree.
Advantages of hiring contractors:
- housing is built faster (modern aerated concrete and frame houses are built in 2-4 months);
- buildings erected by professionals are more stable and durable;
- the aesthetic appeal of the house increases.
In addition, professional builders know more about high-quality thermal and waterproofing, internal and external communications.
Intermediate option
entrust the main stages of construction to contractors: the zero cycle with the installation of the foundation and floor, the construction of the frame, and finish the facade and premises yourself.
Option 3. Repaying the construction loan
You can use a loan taken from a credit institution for the construction, expansion of space and major reconstruction of housing. Maternity capital will help repay such a loan.
To complete this procedure, you need to contact the Pension Fund at your place of residence and get the go-ahead for “damage compensation.” Credits and loans must be issued in accordance with all the rules, preferably in large financial institutions such as Sberbank.
Since 2020, it is prohibited to pay for loans taken from microfinance companies.
Advice
If you are going to use family capital, do not make any transactions with MFOs. The law preventing the transfer of maternal money to the accounts of microloan companies was signed personally by Putin.
Option 4. Reimbursement from mat capital of financial resources spent on building a house
Theoretically, money can be returned retroactively, when it has already been spent on construction and reconstruction. It does not matter whether the work was carried out on their own or the house was built by a professional team. You have the right to return funds in the amount of capital and reduce construction costs by an order of magnitude.
This option is especially relevant for those who do not want to wait three years from the birth of their second child, but want to move to a new home immediately after this event.
To avoid questions regarding the amounts spent on the construction or reconstruction of housing, we advise you to keep receipts, receipts, invoices and other expense documents confirming the purchase of building materials, rental of equipment and special equipment.
Comparative table of options for using capital for construction
| № | Options for using funds | pros | Minuses |
| 1 | Do-it-yourself construction | You yourself calculate the scope of work and the amount of building materials | Quality suffers |
| 2 | Engaging a contractor | The work is carried out by professionals | The overall value of the home increases |
| 3 | Repayment of a construction loan | You can use maternity capital funds without waiting 3 years | Not all banks issue construction loans |
| 4 | Reimbursement of funds spent on construction | Construction can begin before the child turns 3 years old | Documentary evidence of costs is required |
Registration procedure
The procedure for obtaining MSC depends on the method chosen to build the house. There are 2 options for constructing a residential structure:
- Organization of construction on your own.
- Involvement of a contractor in the work.
For both the first and second methods, before starting construction, it is necessary to obtain documents such as an MSK certificate, paper for a land plot, a work permit, and an obligation to register ownership in equal shares.
Using maternity capital funds to build a house
MSK Certificate
To receive money from a maternity capital account, you must have the appropriate certificate in hand. To complete it, you should contact one of the Pension Fund offices, where an application is drawn up, to which documents of the mother and all children, as well as SNILS, are attached. The issue of providing a certificate in accordance with the law is resolved within 15 days.
Papers on the ground
The next step is choosing the location of the housing. The land should be located near transport interchanges. It is better to have schools, hospitals and shops nearby. It is necessary that all required communications can be brought to the house without difficulty.
To prepare documents for land, you will need to buy the plot, receive it for free use, or take out a long-term lease.
To obtain land documents, you will need to enter into a long-term lease agreement.
Permission
Permission must be obtained from the local municipality before construction begins. The following papers are required:
- statement;
- title documents for land;
- boundary plan;
- cadastral plan;
- construction project.
Before starting construction of a house, you must obtain permission from the local municipality
Document on ownership share
You will need to draw up a document on the mandatory allocation of property in the planned building. It is divided equally among all family members. A similar procedure is carried out no later than six months from the date of completion of construction. This paper is certified by a notary.
Document on ownership share
Application to the Pension Fund
When all the papers have been collected, you can send a request for the provision of MSC funds to the Pension Fund. It is important to take into account that you can count on receiving government funds only when the baby whose birth became the basis for issuing the certificate is 3 years old. Before this time, it is possible to use money from the federal budget in a situation where borrowed money is used for construction. Additionally, the Pension Fund may require SNILS and a marriage document.
The submitted application is reviewed within one month.
Application for disposal of maternity capital funds
You can use the application form for the disposal of maternity capital funds here.
Self-construction
If the house is supposed to be built with one’s own efforts, then if the answer is positive, after another month, the owner of the certificate receives state funds into his account. It is important to remember that they will not be credited all at once, but only 50% of the available MSC amount. To receive the remaining half, you need to collect new documents indicating the intended use of budget money. In addition, a certain period must pass: at least six months.
To confirm the construction work carried out, you should collect all payment documents related to the purchase of materials. Additionally, it is necessary to draw up an act on the completion of part of the work. The last document must be endorsed by a representative of the local government authority.
Loan for maternity capital for construction
Attracting contractors
When a house is built by a contracting team, MSC funds are sent directly to the contractor’s account. And the entire amount is in full. In this case, the Pension Fund will require, in addition to the previously listed documents, an agreement concluded with the contractor.
Important! The contractor must have a state license to carry out construction work.
There are certain requirements for the content of the contract. In addition to entering into the text of the document the main details of the parties to the transaction (customer and contractor), the cost of the work and the deadline for its completion must be indicated. The contract specifies the rights and obligations of the parties. An important section is determining the order in which the finished object is received. The document includes such a mandatory clause as the payment of the MSK amount as partial or full payment.
The contractor must have a state license to carry out construction work
All technical documentation and construction estimates are attached to the contract.
In addition to the fact that MSC funds are provided immediately in full when attracting builders, there are other advantages of this method of building a house:
- The work time is significantly reduced, since a whole team of specialists takes part in the construction.
- A house built by professionals is more durable and looks aesthetically better.
Combined method
It is possible to use a combined option, which involves carrying out the main work (laying the foundation, erecting walls, laying out communications) by builders, and the finishing of the premises and facade is carried out by the owners themselves.
Combined method of building a house with a contractor
Registration period
You can apply for MSC funds both at the start of construction and upon its completion. In this case, even if the house was built only with your own efforts without the involvement of third parties, you can immediately receive the entire amount that is in the maternity capital account.
Table with interest rates for mortgages using maternity capital:
| Bank | % per annum | Purpose of the loan |
| Sberbank of Russia | 13% | Purchasing new (finished) or under construction housing |
| VTB 24 | 13.95% | Buying a secondary home or an apartment in a new building |
| DeltaCredit | 13% | Purchasing an apartment in an already built building or in an apartment building |
| Bank of Moscow | 11.90% | Mortgage + Maternity capital |
| Unicredit | 13% | Buying an apartment or cottage |
The procedure for using maternity capital to build a house
So, your child is 3 years old or you have the right to dispose of money before this period. You have decided to build a house for the whole family and want to immediately begin implementing your decision.
Let's look at how best to do this in 2020.
Step 1. Registration of ownership of the land plot
The first stage of any construction (with or without the involvement of maternal capital) is resolving the issue of a land plot. The land on which you are going to build a house must belong to you.
There are several options for obtaining land ownership:
- Buy a plot of land.
- Rent it.
- Register the right of inheritance for him.
This is an important point, since state family subsidies cannot be used to purchase land. They can only be spent on the construction and/or reconstruction of housing. The explanation for this circumstance is simple: buying land does not improve living conditions, since one cannot live on a bare plot.
Step 2. Search for a construction contractor
Those who choose to build a house on their own can skip this step.
If you decide that it is not worth spending your energy on building a house, but that it is better to entrust this task to a construction company, you should find such a company and order it to build a house.
When choosing a contractor, be sure to read examples of work, prices and construction conditions. Ideally, you should talk to the clients of this company and find out all the important information from the original source.
The company must be aware that you are going to use maternity capital money to pay it, since transactions of private companies with public funds have their own nuances.
Step 3. Collecting documents and contacting the Pension Fund
The land plot has been registered and contractors have been found. The next step is to contact the regional branch of the Pension Fund of the Russian Federation at your place of residence or registration. You need to submit an application and provide the relevant documents along with it.
The list of papers is as follows:
- A document confirming land ownership.
- Construction permit.
- The obligation to register the house upon completion of construction for all family members.
- A copy of the agreement with the contractor.
- Information about the payment details of the bank to which the funds will be transferred.
- Parents' passports and children's birth certificates (copies).
- Marriage (divorce) certificate.
If you are planning to reconstruct an existing house, you need a document confirming the ownership of this property.
The owner of the certificate writes an application to the fund, after which he waits for a response from representatives of the Pension Fund within a month.
Step 4. Transfer funds to contractors or to your own account
If the application is satisfied, the Foundation transfers public funds for construction. Depending on which route you choose, the money will be transferred either to your personal bank account or to the account of the contractor company.
We remind you that if you build it yourself, only half of the funds will be transferred to you at first. The second part of the capital will be provided only after six months, if you prove that during this period the main construction work was carried out.
Step 5. Construction of the house
In 6 months it is necessary to have time to lay the foundation, build the walls and roof (frame) of the house. In this case, the Pension Fund transfers the balance of funds, and you complete the construction, performing all other work.
If a house is being built by contractors, the construction time is usually reduced, so they need all the capital at once. It is important that all construction work and costs are documented.
What to do if money is not given for no reason - legal advice
Until recently, it was possible to build a house using maternity capital only with the involvement of professional contractors. However, life has shown that for many families it is more profitable, convenient and reliable to build on their own.
In 2010, a law was passed according to which parents can decide for themselves what kind of house to build, where and in what quantities to purchase building materials.
If Pension Fund employees do not make a positive decision, you can refer to this resolution or contact the central branch of the Pension Fund.
Sometimes people are faced with a refusal to reimburse funds spent on a home. In addition to evidence of the intended use of funds for construction, it is necessary to document that the house was built no earlier than 01/01/2007.
By the way, if you are denied assistance in building a summer house, in this case the law is on the side of the Pension Fund. The legal status of dacha land does not give the right to use capital for the construction of buildings. Such buildings do not belong to individual housing construction.
Compensation for reconstruction at the expense of maternal capital
To receive compensation for the reconstruction of a house, it is necessary to attach to the application and documents an inspection report , which indicates that during the reconstruction the area of the house increased and it was carried out no earlier than January 1, 2007 .
If maternity capital compensates for reconstruction, then ownership of the house can be registered before the specified date.
The total area of the house should increase by no less than the registration norm , which is determined differently in each region and on average in Russia is 8-15 square meters. m.
The inspection report is issued by local government authorities based on an application. Within ten working days from its receipt, an inspection of the housing is organized, based on the results of which the specified document is drawn up (Government Decree No. 686 of August 18, 2011).
Which banks to apply for a loan to build a house - TOP 5 banks with favorable conditions
This item is for those who have decided to take out a construction loan and are looking for the most profitable option for such a deal. In conditions of economic instability in the country, many banks have temporarily abandoned operations with maternity capital.
However, the largest financial market players are still ready to help young families with construction financing.
You can apply for loans to build a house from the following banks:
- Unicredit (14% per year, you can pay the down payment with maternity capital).
- DeltaCredit (12-13%).
- VTB-24 (from 12%)
- Bank Otkritie (11.7% under a special program).
Sometimes financial institutions offer individual conditions to clients during negotiations. For banks, it is important that the borrower has a regular income and a clean credit history.
I recommend watching the video on the topic of the article.
