How do I take a loan for maternity capital?
Not everyone knows that many families today have a unique opportunity to get a loan under maternity capital. These are primarily loan programs that give many families a chance to solve their housing or education problems.
How To Use Maternity Fund To Buy Home On Credit?
First, it must be made clear that this allowance is granted to the family as state support after the birth of a child, and in cases where the family adopts a second child. According to current legislation, a family can only receive the maternity capital received in three cases:
- increase of mother’s pension at the expense of capital
- pay for the child’s upbringing
- Spend these funds to improve the living conditions of the family.
Because the first two points are sufficiently temporary, most Russians prefer to spend this capital on the latter.
Before you ask “where to get mortgage loan”, you should be well acquainted with the conditions for providing maternity capital and how to use it. According to the pension fund, which issues certificates for this benefit, more than 75% of Russians generally use the state material support they receive to pay off their mortgages.
It is important to note that the family can dispose of this money and before the child turns 3, that is, as soon as the parents have received a certificate of capital, they can then apply for a mortgage immediately or repay the previously taken out loan .
It should be noted, however, that not all organizations that grant loans for the purchase of real estate accept this remuneration for the payment of the down payment.
It is possible to use a loan under the maternity capital and its funds as a mortgage loan in only a few ways:
- pay the first installment when buying a house
- to pay the real estate loan already taken.
It is impossible to collect this certificate and all outgoing payments with its help must be targeted and cashless. Then prepare the necessary documents for banks that need to apply for a mortgage.
For many holders of the “maternity loan” certificate, the correct use of these funds is becoming a controversial issue. It is forbidden to use them:
- pay for repairs in a new apartment
- buy a new car
- to get a loan for a company
- use cash to buy real estate
- the use of all or part of the capital for the needs of the family.
In order to give the family a loan under the parent capital and they could use this money for their own purposes, you must first get a certificate for that capital. To do this, you must collect all the necessary documents, contact the local FIU branch and make an application for provision.