Buying a cottage with a mortgage. Design nuances and pitfalls on the Nedvio website

Last year, mortgage lending in Russia turned 20 years old. This financial instrument was absent in the Soviet Union and came to us from Western countries, where, in principle, there are a lot of things, but there is no real estate like “Dacha”.

There are no analogues to our dachas in Western countries. It seems to us that it would be funny to go to a foreign bank now and ask for a mortgage for a dacha: their bankers would simply go crazy trying to figure out how to classify this type of real estate.

What is it: a house or an outbuilding? Is this private property or shared ownership? After all, if you look at everything from the point of view of Russian legislation, dachas are housing, but at the same time they are non-residential buildings. And a dacha plot is sort of like a private property, but at the same time, with a lot of restrictions on development and activities on it.

Why this prologue? The fact is that the lack of international experience has largely become the reason for the much slower and more complex development of the field of mortgage lending for country houses and plots. And to this day, getting a mortgage for a dacha from banks is much more difficult than, say, taking out a loan for an ordinary cottage on individual housing construction lands.

How can I simplify this process? Let's talk about everything in order.

What is the loan used for when applying for a mortgage for a dacha?

This is a fairly common question that borrowers face: what, in fact, is the object of lending: only a summer cottage plot or all the buildings on it? How do banks evaluate the collateral of such real estate?

To answer this question, first, let's understand the terminology.

According to Wikipedia, a Dacha is a country house for city residents, usually not used by its owners for permanent residence. In Russia and the countries of the former USSR, dachas are usually called both simple plywood buildings without any amenities on 6 acres of land, and large capital buildings on plots of a hectare or more.

According to Russian legislation, there is no single definition of the term “Dacha”. Some descriptions are presented in Federal Law No. 66-FZ of 1998, according to which a Dacha is a building on a horticultural, summer cottage or gardening type of land.

Note: as of 2021, most of the provisions of No. 66-FZ have lost force due to the entry into force of the new dacha law FZ-217.

How to get a mortgage for a dacha?

The law defines the stages and procedure for carrying out any real estate purchase and sale transactions, including dachas with plots. The main provisions are reflected in the Civil Code:

1. The contract is drawn up in accordance with the requirements set out in Art. 549-557 Civil Code of the Russian Federation;
2. Ownership is transferred in accordance with Art. 218 Civil Code of the Russian Federation;
3. The calculation procedure is carried out on the basis of clause 5 of Art. 488 Civil Code of the Russian Federation.

The main stages of buying a summer house through a mortgage:

1. Selecting a property (here it should be taken into account that you need to select a site that will suit not only the borrower, but also the banks);
2. Choosing a bank and applying for a mortgage loan (here it is recommended to give preference to reliable banks; they can be determined by the following characteristics: number of branches, size of the authorized capital, position in expert ratings, participation in the deposit protection program, reviews);
3. Providing title documents for real estate for consideration by the mortgage commission, an extract from the Unified State Register of Real Estate, boundary and technical plans, cadastral passport, etc. are submitted;
4. Making a banking decision regarding a property : approval or refusal (at this stage the bank evaluates the land plot and all buildings on it, conducts a construction examination, and analyzes its risks);
5. An insurance policy is issued (loan real estate must be insured; keep in mind that you can choose the insurer yourself - not necessarily what the bank will offer);
6. Signing a loan agreement and crediting funds to the Seller’s account.

Important: Banks check country houses and dachas very carefully. Any defects found or problems with documents may lead to a refusal to issue a mortgage loan. One more point - if the dacha is located in the SNT (garden non-profit partnership), then the seller should not have any debts.

Mortgage for a summer cottage

For many, a summer cottage becomes the only opportunity to take a break from city noise and endless activities. But buying and maintaining a country house requires a significant investment, which not everyone can afford. Is it possible to get a mortgage loan for a dacha? Yes, now this proposal is becoming popular - it opens up new opportunities for those who would like to have their own house in the fresh air. But it is important to take into account that a loan for the construction or purchase of a ready-made summer cottage is a fairly new service, so many banking institutions are still placing increased demands on clients and properties.

The field of mortgage lending for country houses and summer cottages is developing more slowly than other areas of mortgages. One of the reasons is the lack of relevant international experience that could be used in relation to Russian reality. From the point of view of legislation, a dacha is both a residential and non-residential building; the dacha plot itself is a private property, but has many restrictions on construction and activities on it. That is why a mortgage on a summer cottage is a rather complex product that not all financial organizations are willing to work with. However, if desired, the borrower will be able to find lending options that will suit him and will not become an unbearable burden on the budget.

Mortgage for a summer cottage

Sberbank. The financial organization has developed several offers for clients who want to purchase country real estate. A significant maximum loan amount allows you to buy housing of any class: from a small country house to a cottage with an impressive plot of land.

Rosbank. A borrower who chooses to cooperate with a bank can count on a long loan period, a significant loan amount and an affordable interest rate, the amount of which is determined individually in each case. You can purchase a plot of real estate of any class, it all depends on preferences and financial capabilities.

Alfa Bank. A mortgage for a summer cottage plot chosen by the borrower is provided against the property being financed; the loan term reaches 30 years. You can purchase a plot for construction, land with an existing dacha or a country house. The program is suitable for borrowers planning to create a farm or subsidiary plot.

Rosselkhozbank. The financial institution operates the “Rural Mortgage” program. A mortgage for a summer cottage in 2021 can be obtained at a low annual rate (subject to life and health insurance of the borrower). The purpose of obtaining a loan may be the purchase of a finished house or the construction of a private house.

Bank opening". Offers participation in the Country House lending program, intended for the purchase of a residential building with a plot of land. The most favorable conditions (reduced interest rate for a long loan period and maximum loan amount) apply to the bank’s salary clients.

Conditions of receipt and documents

When registering, you need to provide two sets of papers. One of them is for yourself, the second is for the property being registered:

• A completed and signed application form by the borrower, which simultaneously serves as an application for a mortgage.
• Borrower's personal documents: passport for identification, TIN and SNILS, a copy of the work record book certified by the employer, income certificate (the form depends on the lender's requirements), marriage or divorce certificate (if any).
• Personal documents of co-borrowers, if the loan is issued with their participation.
• Documents for the plot and house: certificate of state registration, cadastral plan, extract from the Unified State Register of Real Estate, boundary plan describing the boundaries of the plot.
• Technical passport of the house, which is issued by the BTI.
• Title documents for the object (sale and purchase agreement, donation agreement or others).
• A report from independent appraisers, valid for 6 months.
• A document confirming the absence of collateral.

You should be especially careful about this, because any bank has a number of restrictions and requirements for the object being financed and the borrower himself. If at least one of the requirements is not met, the bank may refuse to issue a mortgage. Such requirements are: the presence of a cadastral plan of the site, the presence of bypass routes, fire safety of buildings, confirmed by documents, and others.

To receive the required amount, borrowers must meet certain requirements:

• Go by age - banks usually approve applications from clients who are from 21 years old to 65-70 years old.
• Continuous experience - 3-6 months.
• Stable income of a certain level.
• An initial fee. The minimum value depends on specific conditions. It is often around 25%. In some cases, it is permissible to involve co-borrowers and guarantors.

Object requirements

For registration, it is important that the real estate itself is approved by the lender. To do this most often you need:

• Provide a cadastral plan.
• Availability of bypass routes around the facility.
• Compliance with fire safety requirements.
• Good condition of the house itself.
• The presence of a concrete, stone or brick foundation.
• Availability of communications (plumbing, heating, electrical wiring).

You can reduce risks if you present the financial institution with other property as collateral. This could be an apartment, which the bank can sell if there are problems with repaying the loan. The banki.ru portal will help you select the best option. Current offers are presented here and there is a convenient search and filters. Key data is presented in the cards - study interest rates, available amounts and repayment terms, and then proceed to calculate approximate indicators and design the option you like.

Advantages of a mortgage on a summer cottage

Buying a summer cottage is a profitable acquisition from all sides. The borrower has a choice - to become the owner of an empty plot in order to later build the house or cottage of his dreams, or he can choose a plot with an already built house in order to immediately begin using countryside real estate. It is important to remember about the restrictions imposed by banks - these are the main advantages and disadvantages of applying for a mortgage on a summer cottage.

Pros:

• Reduced interest rate if the borrower wants to buy a house in a rural area under targeted lending programs.
• There are no strict requirements for the borrower - it is enough to have a confirmed stable income in the amount required to make monthly payments, have a clean credit history and make the required down payment.
• The ability to soften the bank’s requirements for the loan object by providing another liquid collateral - for example, an apartment, which can be easily sold in the event of non-payment of debt.

Minuses:

• According to the conditions for obtaining a mortgage for a summer cottage, the property must strictly comply with the bank’s requirements, down to the location and distance to the city.
• High requirements for the home - the property must be suitable for living.
• There is a high probability of refusal if the borrower wants to take out a loan for a house under construction.

The Banki.ru portal will help you evaluate all the possible benefits of taking out a mortgage for the purchase of a summer cottage, select a suitable program and independently calculate the amount of the monthly payment. Thanks to the portal, you can also study reviews from real users and prepare in advance for possible difficulties.

In order to take out such a loan, the borrower will need to make a down payment. There are offers that do not require the client’s own funds, but their cost is significantly higher. The programs described above are not very common and are found in the product lines of a small number of banks.

In addition to targeted loans, you can use a standard unsecured cash loan to purchase a summer house. There are a lot of such offers on the market. You can get a non-targeted loan at almost any bank that deals with retail lending.

No down payment from the client is required.

Although the rates on standard unsecured cash loans are, of course, higher compared to targeted loans, the borrower is not limited in the choice of bank and company selling or building a dacha.

If you don’t want to buy a dacha after the previous owners or if there are other reasons, then you can buy the land with a mortgage and later build a dacha or house on it yourself.

Country mortgage. What documents are required for registration?

The buyer of a country house with a plot must provide the bank with the following package of documents:

1. All title papers : certificate of state registration of property rights, extract from the Unified State Register of Real Estate, cadastral plan, indicating the number, area, location and purpose of the site;
2. A copy of the purchase and sale agreement (SPA), confirming the transfer of ownership rights between the buyer and seller;
3. If among the owners of a country house with a plot there are minors, the consent of the guardianship authorities ;
4. Technical inventory report (in the absence of buildings);
5. Certificate of independent expert assessment of a suburban area;
6. Certificate from the local administration confirming the absence of collateral or seizure of real estate;
7. Certificate from the tax authorities confirming the absence of debt for the dacha and plot;
8. A boundary plan or other document defining the boundaries of the site, with written approval from the neighbors;
9. Technical documentation from the BTI (technical passport, BTI certificate and floor plan of the dacha).

How do banks value country houses? What are the requirements to get a mortgage?

Before issuing permission to issue a mortgage, credit specialists and appraisers analyze a residential building according to the following parameters:

1. General condition of the house . The need for ongoing repairs. Accident and safety level;
2. Availability of connected communications : water supply, electricity, sewerage, main gas or autonomous heating system;
3. Foundation type: concrete, brick or pile-column;
4. Transport accessibility and availability of access roads: what roads lead to the site - sand, crushed stone or asphalt, how far are the nearest highways;
5. The habitability of the village and the safety of living . Banks are reluctant to issue loans for country houses in abandoned, remote villages. Ideally, this is a holiday or cottage community located near a city or larger settlement;
6. The distance from the bank office is no more than 120 km . Not an obvious factor, but nevertheless one of the most important criteria for evaluation by the credit committee;
7. The owner has all the completed cadastral documentation for the object : areas with unidentified boundaries that have not been surveyed - banks will not consider them;
8. Availability of fire safety systems in the country house;
9. The building must have an assigned postal address.

Who can count on a loan? Requirements for borrowers

In order to obtain a mortgage loan for a country house with a plot, a potential borrower must meet the following requirements:

1. Borrower age : the loan recipient must be at least 21 years old (in rare cases - from 18), and at the time of the last payment, the age must not exceed 65 years;
2. “White” income and official employment;
3. Stable salary sufficient for loan payments : monthly payment cannot be higher than 40% of official income;
4. Work experience: total experience - at least 1 year, at the last place of work - at least 6 months;
5. Availability of a down payment : at least 15 - 20% of the amount under the mortgage agreement;
6. Availability of residence permit (registration) in the city where the loan is provided.

If necessary, the bank has the right to request additional information and documents.

Advice: The chances of receiving a positive decision on a mortgage will increase significantly if you agree to take out all insurance: for the house itself, the plot, as well as the life and health of the borrower.

General conditions for rural mortgages

The government has long been arguing that it is necessary to attract people to the village to increase the share of the population. Currently, many villages are dying out, because of this, agriculture is being destroyed. Imports of products are increasing because there are not enough of our own goods. The cost and prices of trade offers are increasing. By attracting people to live and work in the village, the Ministry of Agriculture expects to improve consumer demand for Russian goods, because products from local farms will cost less.

As part of the Rural Mortgage program, the conditions are specified in Government Decree No. 696:

• It is allowed to purchase a house in rural areas;
• Loan repayment terms are up to 15 years, although Sberbank allows you to apply for a loan up to 25 years;
• the lowest rate is 0.1%, maximum is 3%;
• first payment – ​​10% of the price of the purchased house;
• the maximum mortgage amount is 3 million rubles, but for certain regions there are other standards that exceed the established maximum (for example, in the Leningrad region they issue loans of 5 million rubles);
• It is allowed to contribute maternity capital funds as the first mortgage payment.

You need to obtain documents for the Rural Mortgage project in 2021 from the bank. All funds not received from the borrower are reimbursed to the financial structure by the state in the form of subsidies. This point is fixed in Government Resolution No. 696.

The most difficult demographic situation has developed in the Far East. It is for this region that preferential rates on mortgage products are accepted and operate. Before the Rural Mortgage program, houses were bought on credit for 6%, and with the start of the innovation, interest rates were further reduced.

Mortgage loan for a dacha. What could be the pitfalls?

When purchasing a dacha with a mortgage, not everything is as simple as it seems at first glance.

As we have already described, most banks are reluctant to lend to this type of property. The reasons are different: some believe that it is “illiquid” and simply do not want to take risks (after all, in the event of termination of the loan agreement, such an object will have to be “taken” onto the balance sheet and somehow sold), others are afraid of constant (almost annual) changes in dacha and land legislation (and a mortgage is long, long money, here you need to calculate everything for years in advance).

In addition to increased requirements for the quality of collateral, other factors that may influence the decision to issue a loan should be taken into account:

• Ideally, the seller of the dacha should be one owner, without any co-owners, relatives and dependents (minor children, pensioners, or other relatives absent at the time of purchase);
• If the dacha is located in a forest, coastal, or protected area, you will only be able to buy a house, the land will remain the property of the state;
• An important factor is the category, purpose and permitted use of the land under the country house. Ideally, this is individual housing construction. A little worse is agricultural land for dacha construction. With other options, there is no point in applying for a mortgage - you will just waste time;
• Ideally, if the land plot is demarcated, has a cadastral number, and is properly registered with Rosreestr. All borders with neighbors have been agreed upon, and there is a free approach or access to the territory itself.

Therefore, having decided to purchase a dacha with a mortgage, we recommend analyzing the future loan object, how well it meets the requirements of banks, even before submitting documents. A loan refusal, of course, will not ruin your credit history, but you will lose time (and by making a deposit, money) and, perhaps, miss out on more interesting options.

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Is it possible to buy a dacha using maternal capital?

The law allows such transactions with maternal capital. And it doesn’t matter whether the family has other housing or not. The main thing is to register ownership of the dacha and allocate shares in the premises to the children.

EXAMPLE:

Do you want to take out a dacha with a military mortgage? This is also possible. Just keep in mind: you need to buy the whole house, purchasing a share is prohibited. Transactions with buildings located on the lands of DNP (dacha non-profit partnership), SNT (gardening partnership), individual housing construction (plots for individual housing construction) or private household plots (personal subsidiary plots) are allowed.