The country is now experiencing a very difficult economic situation, so it is almost impossible to save money to buy an apartment or other property. This is especially true for categories of citizens who have a difficult social situation. That's why the state offers programs like "social mortgage" that are granted to certain people. It can only be obtained after the borrower proves the need for the mortgage and the complexity of his situation. In contrast to the normal issuance of a real estate loan, significant concessions are offered here.
What is social mortgage?
Only a category of very high earning citizens can buy an apartment or house at any given time, and in order to obtain a loan or mortgage, it is necessary to present documents that prove a sufficient level of income. And not all people meet these requirements. the output is registration of a social mortgage, although it is suitable for a certain category of citizens.
social mortgage is a state program that allows the contracting of a loan for the acquisition of a property, being part of the amount paid by the state. In fact, it is a whole range of social programs that provide government assistance to improve housing conditions for privileged categories of citizens.
You need to understand that the state will not allocate money to any apartment or house. Today, the norm for the size of an apartment, which is covered by a social mortgage, is 18 square meters per person. Two people (husband and wife, wife and child, or other combination) of the same social category are entitled to 42 square meters. At the same time, you can mortgage a much larger apartment, but it will still be calculated as 18 square meters, and only that will be paid for by the state.
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Who can qualify for a social mortgage?
- In need of better housing conditions… In Ukraine, more than a million people line up to get an apartment and often live in precarious and inadequate conditions. Homeowners who do not meet minimum standards and requirements can apply for a social mortgage.
- Family with children. This refers not only to large families, but also to ordinary parents with one child. In case you have a child, the age of the parents must not exceed 35 years. Large families do not have this restriction. Social mortgage under maternity capital – one of the most common types of mortgage. For this, the woman must have a suitable certificate. Mortgage for a young family has the same conditions – you must be registered.
- Soldiers and fighters. The social mortgage for them is the most profitable and optimal condition, but before that it is necessary to be enrolled in the accumulative housing mortgage system for military personnel for two years. However, if done correctly, this category can get you a mortgage with the most favorable interest rates.
- Government officials and officials holding specific positions. This category includes employees of government agencies, scientific organizations that develop technologies in the country, educational institutions, athletes or artists. They have the least favorable interest rates among all categories of citizens.
While a social mortgage seems like an almost ideal way to get a loan for an apartment or house, this program also has some drawbacks.
Disadvantages of Social Mortgages
- you must have a minimum amount of the first installment and it is usually equal to a quarter of the cost of the apartment itself;
- While most social programs help “transfer” the principal amount of mortgage interest to the state, you need to be prepared for the fact that you will have to pay the full cost of the mortgage and interest, because the state will refund the difference. only at the end of the year;
- There is always a risk that the State will refuse to pay your mortgage because the budget for this area is already exhausted, so in this case you will have to bear all the costs, which can happen as a month after the opening of a social mortgage and six months later.
Another feature of social mortgage issuance is the complexity of collecting documents and the inconsistency in the registration process. For example, although the social mortgage program is designed for the poor and people in difficult economic circumstances, in any case, you will need to provide a complete package of documents needed to apply for a loan. This is an employment and salary certificate, you must have a good credit history and more. And many potential borrowers do not meet these requirements.
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How to get a social mortgage?
First of all, you need to pay attention to the requirements that banks have for providers. Normally, if you submit all the documents, you will have to wait for the decision on whether to issue a mortgage. This usually takes more than a month. But that's just the bank (some categories of people who may qualify for social insurance receive more favorable benefits and conditions from the bank), and government bodies themselves must consider your application.
Therefore, it is better to immediately provide a complete package of documents to a financial institution, so as not to go through the procedure again.
- a document proving that you are on the list of people who need to improve their living conditions;
- passport and identification code;
- work certificate (income, time worked in the company, position);
- family membership certificate.
It must be remembered that different banks and different mortgage issuance programs have their own deposit characteristics and document package requirements. In addition, it also depends on the property you are applying for.
Social mortgages are a great way to save money on the home you need. In some cases, the state may refund up to 40% of the entire house's value.
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