A country house is a cherished dream of many families, but not everyone can afford to purchase a private cottage for cash. Here mortgage comes to the rescue to buy a house with a land plot. However, banks are mainly focused on the issuance of loans for the purchase of apartments, so when buying a house there may be some difficulties.
Banks are used to seeing apartments as mortgage objects. Under this type of real estate and “sharpened” most programs. For example, in Sberbank there are various types of home loans:
- with state support;
- young families;
- for the purchase of finished real estate;
- on the construction of a residential house;
- for the purchase of suburban real estate, etc.
A country house has a number of differences from apartments, so banks impose different requirements on customers. Mortgage also has its own characteristics. The list below shows the brightest of them:
- apartments are in great demand than private houses, which is why the latter are more difficult to sell, so banks charge a higher percentage on them;
- suburban housing is usually an order of magnitude more expensive, and the maintenance of the cottage implies high costs, only wealthy citizens can afford such a mortgage;
- a wooden house with a plot is subject to great risks, for example, a fire, so insurance will be more expensive;
- country house must be residential, which is confirmed by the documents, this means that it is necessary to conduct electricity, water, gas – in a word, connect to the necessary elements of infrastructure.
Only with the fulfillment of such requirements can one count on a mortgage loan for a private house or land plot.
It should be noted that the land plot is a separate object; its package of documents is issued for it. Therefore, if the land is “bare”, that is, there are in the capital buildings erected on it, then it is impossible to arrange it for a mortgage in accordance with the law: this type of loan is issued exclusively for residential premises. Consequently, the future borrower should at least start building a house and only then draw up a loan.
Mortgage on a land plot in itself is almost impossible to obtain: the intention to build housing on it must be recorded.
Another difference is the status of the building: residential or non-residential. Sberbank, for example, issues certain types of loans – to a residential house and a cottage / cottage (a room not intended for permanent residence). Under these programs, not only differ conditions, but also a package of documents submitted for verification, and different requirements are imposed on borrowers.
Subject of a pledge
If in the case of an apartment on the secondary market or a finished house, the purchase itself is the subject of a pledge, then construction in progress involves great risks. And banks, of course, do not want to take them on themselves. For example, the same fire or accident during the construction of the building. Another risk – the underestimation of the cost of construction, as a result, the house is not ready until the end, and the unfinished construction is much cheaper than completed.
Therefore, it is not profitable for a bank to contact such borrowers, and it always asks for some kind of collateral. Most often it is a land plot, an existing apartment, a car or other high-priced property.
To determine the value of the pledge will require an assessment of the property by an independent expert. Depending on the price, the maximum loan amount will be set. For Sberbank – this is 75% of the value of the collateral.
Requirements for the borrower and guarantors
For each Sberbank program, the future homeowner will have to provide a different set of documents. Which one is better to consult with the manager, since the mortgage is issued on an individual basis, and in each case it may be necessary to present specific papers. However, the basic documentation package when buying a house and land plot looks like this:
- personal documents of the borrower and co-borrower;
- Marriage certificate;
- marriage contract;
- documents for children;
- the confirmation of the lease or redemption of a land plot, a construction permit (upon registration of the relevant mortgage);
- extract from Rosourstr on the right of ownership of property, primary documents (when buying a built house);
- certificate of income (except for salary customers);
- copy of employment record or employment contract;
- collateral, valuation of the value of the collateral.
The spouse or spouse of the credited person, regardless of age and salary, is always considered a co-borrower. In addition to the second half, Sberbank allows you to attract up to 3 co-borrowers, whose total income is taken into account when calculating the maximum amount of the monthly payment.
Directly to the mortgage borrower are such requirements:
- minimum age – from 21 years;
- the age limit at the time of loan repayment is 72-75 years (this means that when taking a mortgage for 30 years the maximum age is 42-45 years), without providing collateral and guarantors 65 years;
- Work experience: total – from 1 year, uninterrupted – 6 months (this requirement does not apply to payroll clients).
It should be noted that the maximum payment per month will correspond to approximately 50-60% of the net income of the borrower, that is, it will be deducted from it:
- the cost of servicing existing loans;
- the subsistence minimum for each dependent;
- average rent;
- other effective payments to the state or third parties (fines, compensation, etc.).
To receive a sufficient amount of money, you must either attract co-borrowers or provide evidence of additional income.
The procedure for obtaining a mortgage for the purchase or construction of a private residential house is as follows:
- You should contact the bank for prior approval of the mortgage. Experts advise first of all to try to get a loan in a payroll bank or in the institution where you have already taken loans. In this case, there will be more confidence and fewer checks.
- After receiving the approval, the application is valid for 3 months – it is better to specify the specific duration from the manager, since it may differ in different banks for different programs.
- During this period, you must find a suitable house or land and conclude a preliminary contract for the sale of housing or to conclude an agreement with the contractor to build the house, make an estimate and obtain permission to build in the architecture department of the local municipality . In the first case, it may be a natural or legal person, in the second – a legal entity. At the same time, many banks require that the contractor be an accredited builder – this point is also better to clarify in advance.
- Further documents are submitted to the bank. In the case of the purchase of finished housing – primary documentation, information about the absence of debts, copies of personal documents of the owners, etc. In the case of construction – an agreement with the contractor, estimates, the license of the construction company, all possible permits, etc.
- The bank checks the legality and legal purity of the transaction, the mortgage value of the housing according to the documents provided.
- In the case of a positive decision, you can begin to process the transaction: draw up the final contract with the seller or contractor and certify it to the registration authority.
- After the parties need to contact the bank with documents showing that the transaction took place: at the moment it is registered and a certificate from the Federal Registration Service confirming the transfer of ownership.
- The bank transfers the necessary amount to the seller’s or construction company’s account, and concludes a mortgage agreement with the buyer with the buyer. Also, the buyer pays the insurance policy with the selected options.
- After receipt of payment documents by the parties, the settlement can be considered complete.
The specific set of actions may differ depending on the specific situation. For example, if there are children among the owners of a private house, then a permission from the guardianship authority will be required, and if the land plot is leased, then the lease agreement must be extended for the entire term of the mortgage agreement. It is possible that every person will be able to conduct such a transaction on their own, but only having special knowledge or who is ready to work through each question. Most likely, you will have to use the help of bank managers or even professional realtors.
Thus, the purchase in the mortgage of a private house and land is specific. Banks offer separate programs for the purchase of finished housing and for construction. In each case, you will need your own package of documents, and the requirements for the borrower differ. Also, in most cases, banks will require a pledge or surety of several individuals. The mortgage clearance algorithm is rather complicated and confusing, but to successfully complete the transaction, it is enough to carefully follow the instructions of the bank manager and rely on the relevant legislation.