Every day the number of young families is increasing. However, it is not easy for young people to become independent, as property prices increase in direct proportion to the number of marriages. Very rarely, young families can afford to buy a separate living space without getting into debt. Although still for couples who need residential squares, there are options to purchase an apartment or house.
What do I need to know about a home loan for a young family?
If you need a “family nest”, and the family has not yet accumulated money for it, the most reasonable way out is to think about a mortgage. It is important that the state is also interested in the normal development of the newly emerged cells of society, and is ready to provide all possible assistance. Thus, if at least one spouse is not yet 35 years old, then such a family can count on state subsidies and a loan on preferential terms. In order to obtain such a housing loan, two mandatory conditions must be met. First, a young family should be assigned the status of needing to improve living conditions and, accordingly, it should be on the waiting list for housing squares.
To obtain this status, it is necessary that the living area in the place of actual residence of the family does not exceed 10 sq.m. per person. Second, you need to confirm that you can repay the loan. this will require documents about sufficient salary or other income to help you pay off the debt.
What is a mortgage for young families?
To solve the housing problem positively, young families have several options. The easiest thing to do is to mortgage young families in commercial banks. This type of purchase of housing, in comparison with other opportunities, will cost significantly cheaper. If all the necessary conditions are met, it will be easy to get a loan. If necessary, lenders will provide an opportunity for the parents of a young cell of society to become co-borrowers on a mortgage, provide a delay in payment of the main debt (except for interest) for a period of 3 to 5 years. You can’t do without a down payment here, but if the family has already got children, it will be only 15% of the cost of housing (if there are no children-20%).
In addition, a family can become a participant in the special state program “Affordable housing”. Such a program implies the issuance of state subsidies in the amount of 35% for childless young families and 40% for those who already have children. These subsidies can be spent on buying or building a home, paying down a loan down payment, or paying interest and principal.
There is also an opportunity to use state social credit. In such cases, the state can reimburse the lender part of the loan cost or part of the bank rate, making it more affordable for young families, in addition, you can buy a state housing at a reduced rate.