How to properly build a house with a mortgage loan. Mortgage loan for building a house What documents will be required?

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Credit term

A distinctive feature of providing a mortgage for the construction of a house is the possibility of using existing real estate as collateral, rather than purchased property. This condition is especially relevant for those clients who need money to build suburban housing.

Mortgage loan secured by existing real estate: main purposes of obtaining

Mortgages from Rosbank Dom Bank are issued for:

construction of a residential building;

purchase of finished housing - an apartment in an apartment building or country house (including with a plot of land);

purchasing an apartment during construction;

purchase of land;

purchase of a house under construction (including a land plot).

As part of this program, you can also purchase non-residential premises - ready-made apartments. But the most popular option today is a loan for the construction of a residential building. For the remaining specified purposes, as a rule, there are separate mortgage programs that are secured by the purchased property.

Borrower information

Nationality: does not matter

Age: 21 years old at the time of applying for a targeted loan secured by real estate and not older than 65 years old by the time the construction mortgage is fully repaid;

Employment: loans are provided to both employees, founders and co-founders of companies and individual entrepreneurs;

Co-borrowers/guarantors: co-borrowers can be up to 3 people, both relatives and any third parties;

Military ID: not required.

Real estate information

When pledging purchased/existing real estate:

The building in which the object is located should not be registered for major repairs, demolition or reconstruction with vacancy;

The property must have a separate kitchen and bathroom;

The final decision on whether the collateral meets the requirements is made by the bank.

Insurance information

Mortgage for construction: conditions for issuing a mortgage loan

Today the bank has the following conditions for issuing a loan for real estate construction:

loan term from 3 to 25 years;

base interest rate – 7.49%* per annum;

amount – from 300 thousand rubles. – for regions and from 600 thousand rubles. – for Moscow and the Moscow region;

loan amount – no more than 70% of the value of the existing property.

A mortgage for the construction of a house from Rosbank Dom can be issued with the involvement of co-borrowers - up to 3 people. They may or may not be related to the primary borrower. To receive money for building a house, a bank client must provide documents confirming the intended use of the funds.

Who can take out a home construction loan: a list of requirements for the borrower

Clients can receive a loan to build a house on favorable terms, for example, without a down payment. The borrower only needs to have a confirmed income and meet the age requirements, namely, to be no younger than 20 and no older than 65 years old on the date of full repayment of the debt. The client's nationality does not matter.

A mortgage for the construction of a private house is issued only on the condition that an apartment is provided as collateral. If the purpose of lending is the purchase of apartments, then the finished apartments that are owned by the borrower should act as collateral.

Before applying for a mortgage at the construction stage or for the purchase of finished housing, it is important to remember that the property pledged as collateral must meet the following bank requirements:

The apartment is located in a building that is not subject to demolition, reconstruction or major repairs. A mandatory condition for a mortgage for construction is the presence of a separate kitchen and bathroom in the housing.

The apartments are a separate room, located on above-ground floors and have central communications. You will find the specifics of obtaining a loan for housing construction in the General Loan Conditions. A complete list of requirements for apartments is also presented here.

Find out more from our specialists about the conditions for obtaining money to build a house, the features of obtaining a loan without a down payment secured by existing real estate.

* Lending conditions affecting the full cost of the loan (as of December 31, 2019): rates 7.49% -10.74% for clients whose salary account is opened with PJSC ROSBANK, with a loan amount of 50% of the market value mortgaged real estate, commission in connection with a reduction in the interest rate under the agreement of a one-time payment in the amount of 1% to 4% of the loan amount (depending on the terms of the loan agreement), life and health insurance, property and the risk of loss (limitation) of ownership rights to it (the borrower has the right not to insure these risks), and depending on the credit history, loan term (3-25 years), work activity, level of education, number of participants in the transaction, location of the collateral, type of income and ratio of income to expenses. Until the intended use of the loan is confirmed, the rate increases by 2%. Loan size from RUB 600,000. for Moscow and the Moscow region, from RUB 300,000. for other regions. Costs for appraisal and insurance – in accordance with the tariffs of appraisal and insurance companies. PJSC ROSBANK reserves the right to change any part of this message without prior notice. Branch of PJSC ROSBANK "Rosbank House". The bank has the right to refuse to provide a loan. PJSC ROSBANK General license of the Central Bank of the Russian Federation No. 2272 dated January 28, 2015

If you are tired of living in a city concrete box and want freedom, start building a house with a mortgage program.

Purchasing a home is one of the most important purchases for any family.

Most residents of big cities are beginning to seriously think about moving to a quieter place, outside the city.

Here we are talking about a complete move, with permanent residence. There will be clean air all around, no neighbors behind the wall, as well as various earthly blessings such as a river, lake, reservoir.
For example, for the same money, instead of a 2-room apartment, you can build a beautiful country house, which will be 1.5-2 times larger in area than an apartment. Also, depending on the size of the plot, over time it will be possible to complete a bathhouse, a gazebo, make a swimming pool, add a garage, and on the remaining part you can plant trees.

Who would refuse to live in such a house? And all this away from the boring city bustle.

Loan for construction of a summer house

Of course, not everyone needs a full-fledged country house. Most people just want to have a small country house or garden house. In this case, you can also take out a loan.

Sberbank offers a loan for the construction of suburban real estate, for its purchase, as well as for the purchase of land. The minimum amount is 300,000 rubles. After all, the average cost of summer cottages in the regions varies from 300,000 rubles.

If you already have a plot of land, you can take out a loan to build a country house. Such loans are issued by more reliable banks - Sberbank and Rosselkhozbank, which offer the most favorable conditions and long terms (up to 25 years).

According to the bank's terms and conditions, the following are used as collateral:

• existing real estate that is privately owned by the client;
• existing land, and the category of land should be individual housing construction;
• the acquired plot of land and the future house that will be built on it;
• client's movable property;
• maternal capital.

Are they currently offering mortgages to build a house?

Unfortunately, there are very few banking offers. A mortgage for home construction is one of the riskiest types of mortgages for a bank, which is why the requirements are more stringent.

The main risk is the case of unfinished construction, which automatically reduces the liquidity of this building to a minimum. To compensate for its risks, the bank requires a maximum of collateral obligations, and co-borrowers are often required.

Let us recall that the December 2014 instability in the banking sector forced almost all banks (including Sberbank) to curtail mortgage lending programs for home construction. Only on May 29, 2015, information appeared on the Sberbank website about the resumption of the mortgage lending program for a private home called “Construction of a residential building.”

Requirements for the construction site

Unfortunately, you can't just walk into the bank and ask for a loan to build your dream home.

The bank must make sure that your construction is a realistically feasible process, and also that there will be no problems with putting it into operation in the future. You will have to convince the bank of this, and this is done not with colorful speeches, but with real documents in the form of permits, plans, projects and approvals.

The construction of a house must take place according to the procedure established by law. Initially, you need to obtain all permits, order a project that needs to be approved, so that after completion of construction, when putting the house into operation, there will be no problems.

The bank pays special attention to your land plot. If it is your property - great, but if it is leased - also not bad (the only thing is that then it cannot act as collateral). The land plot must be suitable for housing construction. It’s good if there are already utilities connected to the site. Documentation on the land plot must be as complete as possible and ready for registration of ownership of the object. If construction work has already begun on the site, and at least the foundation has been erected, then in order to obtain a mortgage it is necessary to register the unfinished construction project.

Site requirements:

• The land plot must be located at a certain distance from the location of the creditor bank;
• The category of land of the plot being pledged must be exclusively “land of settlements” and intended for individual housing construction, farming or dacha construction;
• The site should not be under encumbrance;
• If there are buildings and structures on the land plot, the borrower's ownership of them must be reflected in the Unified State Register of Rights to this real estate;
• If the land plot is owned by shared ownership, then all owners will be required to act as mortgagors.

Methods of financing the construction of a house using borrowed funds

Targeted loan for construction.

It’s quite difficult and long, there are a lot of nuances and obstacles. You can receive the first tranche of money, clumsily confirm its use and lose the second part of the money. This could freeze construction. This option also requires confirmation of the availability of a down payment. The bank can only give 70-80% of the estimated cost of the future home.

Loan secured by land.

If you already have a plot of land, this greatly simplifies the matter. Of course, they won’t give you a lot of money for the plot. But this could be an additional source. Perhaps you have additional savings, which will also make construction easier.

Loan secured by real estate.

This is a more serious step. You can mortgage, for example, your apartment to obtain a significant amount of cash. Banks approve a maximum of 80% of the market value of the apartment being pledged. This amount may be enough to fully finance the construction.

Loan secured by transport.

If you pawn your transport, you can also get a good amount. It must be remembered that the bank will value the car at 60-70% of its market value. At the same time, there are both loans from car pawnshops and from banks. Loans secured by transport are ordinary non-targeted loans with collateral. They are available in almost every major bank.

Use of maternity capital.

It can also be used for construction.

Consumer loans without collateral.

It is possible and even better to apply for several loans. Construction is an expensive business. It’s good, of course, if you have savings. Again, they won’t give you a large amount of money unless you give the bank something as collateral. If you do not want secured loans, then you can offer the following scheme: your own savings + consumer loan for 1-2. You have built part of the building, paid off the loan, and take out a new one. Construction, however, will be delayed, but it is relatively safe from the point of view of debt servicing.

Scheme for obtaining a loan for building a house in 2017

Schematically, the process of applying for and obtaining a mortgage for building a house (Sberbank is given as an example) looks like this:

• Filling out an application to the bank;
• Providing the necessary documents for the down payment (account statement, check);
• Receiving the FIRST part of the loan money;
• Report on the amount spent;
• Receiving the SECOND part of the loan money;
• Registration of ownership after completion of construction;
• Transferring the constructed house as collateral to the bank to reduce the interest rate.

What documents are required?

Documents that will be required:

• Passports (yours, your spouse’s, as well as those who are co-borrowers and guarantors) - copies with registrations;
• Certificate from place of employment indicating income;
• All papers relating to the collateral (certificate of ownership of land or other housing);
• Construction plan for the future house and other documents for it;
• Down payment (proof that it exists);
• Marriage and birth certificates if required.

The bank may require additional papers on an individual basis (certificate of capital, certificate of account status, military ID, etc.).

Is the mortgage recipient at risk?

Many people are concerned about possible risks, which are the main obstacle when applying for a mortgage. The greatest worries are associated with the fact that in the event of a mortgage and in the absence of the ability to pay monthly installments, a person loses his own property. But this situation can be looked at from the other side. In the event that the mortgage owner loses the ability to pay monthly installments, he has the opportunity to resell the unfinished private house. The demand for such real estate is quite high for our market. And an unclosed mortgage can be easily transferred to a new owner. In this case, you will not lose absolutely anything and the risk is reduced to an absolute minimum. Taking out a mortgage is a very profitable and worthy offer for those people who need this money. Thanks to them, you will be able to build and furnish your new home. Just be more careful when studying mortgage offers from different banks. Choose the mortgage that has the most favorable terms and conditions and will cause you the least inconvenience.

The housing problem is one of the most pressing issues among Muscovites who are looking for money to purchase real estate.

A mortgage for housing construction in Moscow makes it possible to obtain real estate in a fairly short period of time.

To obtain a mortgage loan to build a house, the bank puts forward the following requirements to the client:

• Age from 21 to 65 years;
• Stable work;
• Income. Not only the client’s earnings are taken into account, but also his family’s;
• Amount for initial deposit.
• Guarantors are needed if the client’s income does not satisfy the bank.

Banks in Moscow provide the following types of mortgage loan programs in 2020:

• standard;
• social;
• "Young family";
• for military personnel.

The client is given the opportunity to independently calculate the monthly payment using a virtual calculator, compare conditions in several banks and choose a more profitable option for himself.

Applying online for a loan in Moscow is easy, just a few steps are enough:

1. Go to the bank's website.
2. Fill out an application.
3. Send it to the bank.
4. Get an answer.
5. Collect the necessary documents and go to the bank.

How can Muscovites get a mortgage to build a house?

You need to submit a number of documents to the bank:

1. Passport.
2. For males - military ID.
3. SNILS.
4. Education documents.
5. Marriage certificate, birth documents of children.
6. Work record book from work
7. Income certificates.

When issuing a mortgage for the construction of a private house, the bank takes into account what material the client is building the house from (concrete, brick or wood), as well as the characteristics of the foundation.

Those clients who build from more durable materials have a greater chance of getting a mortgage in Moscow for building a house.

Which Moscow banks provide mortgages for housing construction to Muscovites?

Among the leaders:

• Sberbank;
• Bank of Moscow;
• Rosselkhozbank;
• Credit Bank of Moscow;
• RosEvroBank and others.

By taking out a mortgage for housing construction, the client quickly resolves housing issues. Preferential mortgage agreements that are economically beneficial to the client are a reliable investment.

Dreams of owning a home can become a reality even for those who do not have personal funds for construction. Today, Moscow banks offer programs for the construction of a residential building. For many, the conditions for providing such a loan will be much more profitable for a number of reasons:

• You can open a line of credit at the bank and spend the funds as construction progresses; in this case, interest will be accrued only on the amount withdrawn from the account;
• For young families, many banks provide the opportunity to obtain a mortgage;
• If during the construction phase you need a larger amount than you planned, you can count on a grace period for paying the principal.

Mortgage conditions for building a house in Moscow

You can find a list of banks providing mortgage loans on our website. The interest rate and monthly payment amount will be calculated by the loan calculator. The application is submitted on the bank’s website or in person at bank branches in Moscow.

Mortgages for the construction of a private house in Moscow are issued by most banks for a period of up to 30 years at a rate of 10%. One of the conditions is the registration of a mortgage on the land or on existing real estate. If you are interested in a mortgage for building a house without a down payment, then you will need to draw up a surety agreement and provide the bank with confirmation of your solvency.

A mortgage for the construction of a residential building is a complex type of loan. If you decide to build a private house on credit, you will have to work hard, adapting to the bank’s conditions and collecting the necessary documentation. The result of your efforts will be a house built according to your own design. But the problem is that there is still no worthwhile collateral value other than the land.

In reality, everything is different. The bank must provide a guarantee of repayment of funds; with a mortgage loan, this serves as an encumbrance placed on the purchased property; it remains pledged until the debt is paid in full.

What can be used as collateral for a mortgage to build a house? In fact, the house itself does not exist yet, it is only in design, it is impossible to even name the future cost. So the potential borrower has to look for options for collateral, since without it, not a single bank will give approval, or even consider an application.

What is the difference between a mortgage loan for building a house and an apartment mortgage?

Which banks provide loans for building a house in the amount of more than 75% of the cost of the land? There is no such. And the borrower usually needs at least 2-4 times the value of the land. That is, this loan will be unsecured (since it is not secured by collateral). It turns out that this is a consumer loan for a large amount, which is very difficult to obtain. That's why banks refuse.

With secondary housing, everything is simple. The cost of the object already has value, is liquid (if suddenly the borrower refuses to pay tomorrow) and can easily be sold. Not so with a country house.

What can be additional collateral?

When it comes to additional collateral of any real estate, we are talking only about the borrower’s own real estate, which is documented. In this case, a document will also be required that will indicate how the citizen became the owner of this object. This could be a gift agreement, a purchase and sale agreement, or documents for receiving an inheritance.

It is impossible to leave someone else's property as collateral. If this is possible, then only in third-party non-bank organizations. How to get a loan to build a house in this case?

The simplest solution is to use real estate that is already owned by the borrower as collateral. If you have some kind of real estate, for example, an apartment, then there will even be several options to build a house on credit.

• The first is to take out a simple non-targeted loan secured by real estate, and use the funds received to build a house.
• The second option is to take out a mortgage to build a house secured by existing housing; this option will be more difficult to arrange, but it will be much more profitable. Imposing an encumbrance on your existing property does not in any way prevent you from using it fully, but you will not be able to change the owner.

The collateral is the land plot on which the house will be built. In any case, the land must already be owned by the borrower; it is impossible to buy land and build a house on it under one loan agreement. So, a mortgage for the construction of a house already presupposes that the potential borrower has land registered in his name. This area can be left as collateral.

How to get a mortgage to build a house secured by land

So, you have land on which you plan to build a house, which means you can use it to obtain a mortgage. Initially, the bank will require an assessment of this site. Based on the price in the appraisal report, the maximum possible loan amount will be assigned, usually 70–80% of the market value of the land.

The assessment is carried out by the borrower; it can be an independent search for an expert, or the bank will advise you to contact a certain company. A specialist goes to the site, studies the object, takes measurements, and then draws up a report in which the market price of the object will be stated. The cost of assessing an object may be 10–15% less than what you expected.

One of the reasons for this is that the assessment takes into account the approximate further costs of upgrading the property. The assessment report will be valid for 6 months.

Since the bank issues an amount based on the price specified by the expert, another difficulty awaits the borrower here - the loan amount may turn out to be much less than what is needed to build a house. A citizen can literally only have enough for a foundation and that’s it. Where can I get a loan to build a house in the future?

If you initially understand that the money allocated by the bank will not be enough for you, you need to discuss the situation with the bank in advance and come to some kind of decision together. And most often there is only one solution - a gradual replacement of the collateral.

For example, you took money secured by land, it was enough to build a foundation and some other work. The result was not just a plot of land, but a plot with a building, its value has increased. Now, in agreement with the bank, you again invite an appraiser, who determines the new value of the collateral, which turns out to be higher. The bank reissues the collateral and gives the difference in price to the borrower. And this can be done several times, during the construction process the object will become more and more expensive.

Conditions for obtaining a mortgage for building a house

A loan for the construction of a private house secured by your own land plot is offered by many banks that work with mortgage loans. In this case, a citizen in any case needs to have a certain part of his own funds to build a house, usually this is 15% of the cost of constructing the object according to the estimate. If the value of the collateral is less than the cost estimate, then the bank takes 15% of the estimated value of the collateral from the borrower.

According to the rule of banks, a citizen should spend no more than 50% of the income received to make a monthly payment.

When studying the borrower’s application, the bank considers not only the appraisal report, but also the borrower’s income to determine the maximum loan amount.

For example, the deposit was valued at 2 million rubles, an initial payment of 15% is 300,000 rubles. The loan will cost 1.7 million rubles. If the borrower receives 50,000 rubles, then he must pay no more than 25,000 rubles per month. If you make calculations using the Sberbank loan calculator or the loan calculator on our website, then with an interest rate of 15.75% per annum and a loan for 14 years, the monthly payment will be approximately 25,000 rubles. Under these conditions, you can get a loan to build a house with a salary of 50,000 rubles.

Banks allow co-borrowers to be involved; their income is also taken into account when assigning the maximum possible loan amount. Most often, spouses become co-borrowers.

Loan programs for the construction of wooden houses from banks:

• At Sberbank you can get a loan to build a house with a down payment of 15%. The mortgage may be a plot of land or other property of the borrower;
• You can get such a loan from the Bank of Moscow without a down payment. Only a land plot can act as collateral;
• at Zapsibkombank you need to pay 20% of the down payment; only a plot of land can be collateral.

As a result of the transaction, together with the loan agreement, the borrower signs a document imposing an encumbrance on the land plot. According to this document, the borrower cannot make any legal transactions with the land. The encumbrance is removed only after the debt to the bank is repaid in full.

Required Documentation

You can take out a loan to build a house only by collecting the necessary package of documents. It is impossible to talk about a single standard of required documentation; each lender will speak personally about his requirements for the borrower: but in general the list will be similar:

• income certificates;
• confirmation of employment;
• documents for the deposit being left.

The most important part of the package of documents is the construction estimate or contract with the contractor.

You will receive information about the exact package of documents from the creditor bank. After collecting all the necessary documentation and a positive decision from the bank, you can begin building the house.

Most often, a construction loan is provided not in the entire amount, but in tranches, which is more profitable for the borrower.

Self-construction without a contractor

Banks allow you to build houses without involving third parties. In this case, the borrower independently draws up an estimate, including the cost of materials, connecting communications to the house and other obligatory cost components. To prepare such an estimate, you can contact a construction organization that is more knowledgeable about construction costs and will be able to make a more objective estimate.

If you want to get a loan for the construction of wooden houses, prepare yourself for a labor-intensive process. The loan is very difficult to obtain; banks very carefully check the borrower, the collateral and the project itself.

The interest rate on a home construction loan will be slightly higher than with a standard mortgage, this is due to the bank’s increased risks.