Buying an apartment with a military mortgage: step-by-step instructions

A military mortgage is different from a regular one. First of all, those who pay for the purchase of an apartment. When applying for a classic housing loan, this is done by an ordinary citizen. And with a military mortgage - the Ministry of Defense. Simply put, while a person serves, the state pays for his housing. To avoid getting confused in all the nuances, use the step-by-step instructions.

What happens to the mortgage if I quit for good reason?

It all depends on the reason for dismissal. If the reason for dismissal is valid, the serviceman has the right to count on state assistance. Valid reasons include the following:

• the serviceman was declared unfit for service;
• the personnel changed, and there was no place for the serviceman;
• the position was abolished or the specialist was laid off;
• the contract expired and a new contract was not issued.

If a serviceman is dismissed for family reasons, then this can only be a temporary dismissal with the right to reinstatement. When dismissal for family reasons, the issue of paying off the mortgage with the help of the state is considered individually.

If a military man resigned for a good reason and retained the right to NIS, he needs to contact Rosvoenipoteka to receive all the money to repay the mortgage loan. The procedure looks like this.

• After signing the dismissal order, the military man submits a report addressed to the commander of the unit where he served.
• The unit commander hands over the documents to his superiors.
• The information is transmitted to Rosvoenipoteka.
• The agency reviews the data within a month.
• If the report is completed correctly and the data matches, the remaining money is transferred to the borrower’s bank account.

How to buy an apartment with a military mortgage quickly and profitably - professional assistance to military personnel

For most NIS participants, the procedure for obtaining a mortgage presents certain difficulties:

• the event takes energy and time;
• military personnel, like all other citizens, often make mistakes in preparing and submitting documents;
• Borrowers do not always have the opportunity to find a decent property at the best price.

To simplify the task and buy really good housing, contact a professional organization that provides services to military personnel who want to buy an apartment.

For example, one of such organizations is the Granel Group of Companies, a capital development company that offers NIS participants the ability to quickly and safely purchase new apartments in Moscow and the region.

The main advantages of cooperation with a professional company:

• A minimum of documents is required from the client (passport and NIS participant certificate);
• increasing the loan amount to 2.8 million;
• minimal time consumption – work is carried out on the “one window” principle;
• guarantee of early commissioning of houses.

On the official website you can find offers and interest rates on the offered loans.

How ordinary citizens can buy an apartment with a mortgage is in a separate blog article.

What happens to the mortgage if you are fired under the article?

A military man can be fired for failure to fulfill contractual obligations. If this happens, the former serviceman will have to return all subsidies. But the Ministry of Defense is considering the issue on an individual basis. Upon dismissal from service while retaining your position, the money can be returned within ten years. But after dismissal for an unexcused reason, the borrower will pay the military mortgage from his own money.

A military man can be fired under Article 51 of Federal Law No. 56. And in this case, all the money will have to be returned. The grounds for dismissal under this article are as follows:

• the officer was stripped of his rank for violation of discipline, deception of superiors and concealment of income, financial fraud, abuse of official position;
• the military man committed an intentional crime and his guilt was proven in court;
• change of citizenship and acquisition of new citizenship;
• failure to comply with the terms of the contract;
• dismissal for systematic violations of order;
• refusal to undergo a medical examination for the presence of narcotic substances in the body;
• failure to fulfill or evasion of one's direct duties.

Read the article “What is title insurance when taking out a mortgage?”

FAQ – Answers to frequently asked questions

Even the military themselves are not always aware of how the NIS operates and what pitfalls the military mortgage program has. This section contains answers to the most popular questions regarding the purchase of an apartment by participants in the savings system.

Is it possible to get a tax deduction for an apartment purchased with a mortgage?

Only those military personnel who also used personal savings to purchase housing under the VI can claim a tax deduction. To receive a tax deduction, you need, as in the usual case, to submit this request to the tax service of the Russian Federation.

NIS participants who bought an apartment exclusively with funds from the federal budget cannot receive any property deduction, since state money is not subject to personal income tax.

Is it possible to sell an apartment purchased under VI?

The NIS participant receives the right to manipulate the apartment only after the state has completely repaid the mortgage. If a military man leaves the army early and pays off the debt himself, he also gets the opportunity to sell, donate an apartment and pass it on by inheritance.

Before this, the military man and his family members can only live in the purchased apartment and make repairs to it. In an ideal situation, the debt becomes due at age 45, when the service member retires. After paying off the mortgage, the apartment becomes full ownership - now it can be sold, exchanged, or given as collateral.

Is it possible to rent out a property purchased with a mortgage?

Most military personnel are law-abiding and loyal citizens who strictly follow service instructions and rules. But for some reason, many of them believe that renting out living space is a kind of entrepreneurial activity, which is prohibited from being carried out with property pledged to the state.

The opinion is erroneous, since leasing does not relate to entrepreneurship. Even the limited property rights that the property owner has fully allow him to rent out the apartment purchased under the VI for temporary use, if a full-fledged and legal agreement is drawn up.

You only need to pay the state the required 13% of the monthly rent and you can safely receive additional passive income.

How to divide a mortgaged apartment during a divorce?

Divorce of spouses involves the division of jointly acquired property and, first of all, of course, real estate. However, the division of an apartment purchased by NIS participants is not subject to civil law.

Such cases are considered by the army court. The decision on the division of property is made based on the particular circumstances of the divorce case. A marriage contract, which Rosvoenipoteka employees advise all military personnel who have taken out a housing loan, will help to avoid conflict situations.

Which apartment to choose - military mortgage for new buildings and secondary housing

The apartment is chosen directly by the NIS participant. According to VI, military personnel cannot afford too expensive real estate, even if they have the highest rank in the army. True, everyone has the right to invest personal or family savings in the purchase, so in theory there are no restrictions on the area and status of the object.

Buying an apartment in a new building is easier and faster. Now you can purchase real estate at any stage of construction, and the developers themselves offer NIS participants exclusive and favorable conditions.

According to real estate agencies working with military mortgages, the most popular type of housing among military personnel is a 2-room apartment with finishing in a new building at the initial or middle stage of construction.

The VI program also extends to the secondary market. But in this case, the apartment must clearly comply with the standards of the financial institution that issues the loan. These standards are established by the Housing Code of the Russian Federation. The parameters of the apartment, sanitary standards and other indicators are taken into account.

I recommend watching a short but instructive video on the topic of military mortgages.

Who can buy an apartment with a military mortgage?

All officers who have entered into service contracts since 01/01/2005 are automatically eligible to participate in the program. Military personnel in this category can use the accumulated funds within a regulated time frame or ignore this opportunity.

The following have the right to voluntary membership in NIS:

1. Midshipmen and warrant officers serving under a contract for more than 36 months from 01/01/05.
2. Sergeants, foremen, privates and sailors who entered into contracts no earlier than 01/01/05.
3. Graduates of military universities who entered contract service earlier than 01/01/05.

To participate in the program, the persons mentioned above must submit a report to one of the branches of Rosvoenipoteka and declare their desire to become a member of the NIS. After considering the request, the department makes a decision and informs the serviceman about it.

Employees of Rosvoenipoteka branches advise program participants by phone and online on their official website. The institution conducts educational work among the military and issues targeted housing loans to everyone who has a legal right to do so.

How to buy an apartment with a mortgage for military personnel - action plan

Let's move on to the practical part. What should a person do if he decides to exercise his right to buy an apartment under the VI? Where should he go? What documents are needed? How to speed up the process of purchasing a home?

The algorithm of actions looks simple if you study it in advance. In addition, military personnel have 2 ways to implement their plans - to act independently or with professional help.

I’ll tell you later about how to buy an apartment via VI through intermediary companies. This section contains detailed instructions for those who decide to do it on their own.

Step 1. Participation in the savings system

Let's start with the main thing - you need to become a member of the NIS and remain a member for at least 36 months. As soon as this period expires, you have the right to express your desire to receive a loan.

How it's done? A serviceman writes a report addressed to the head of his unit. The report is sent to Rosvoenipoteka, the military man is waiting for its satisfaction.

The average waiting period is 2-3 months. If the answer is positive, the military man is issued a certificate of entitlement to issue a TsZHZ - a targeted loan for housing.

The document confirming the right to a loan is valid for six months from the date of issue. That is, during this period the serviceman is obliged to find an apartment, a bank that will issue a loan, and complete the transaction.

Please note that all stages of purchasing an apartment using VI (if you have chosen the independent route) are carried out personally by the program participant, with the exception of transactions related to money transfers.

Step 2. Finding an apartment

With the certificate in hand, it’s time to start looking for an apartment. An increasing number of military personnel are choosing to purchase living space in new buildings or houses under construction using VI.

In theory, this is the safest and most reliable way to purchase a home. In practice, everything depends on the developer. Everyone knows of cases when construction “freezes” almost at the final stage and residents wait for months or years for the house to be delivered.

The military is not immune from such situations. To avoid them, I advise you to act through a professional agency for the selection and registration of housing for military personnel.

Advantages of buying apartments in new ready-made buildings:

• the housing is vacant, no one is registered in the apartments;
• the living space is not burdened with debts for housing and communal services and the energy services of the apartment are completely transparent - you will be its first owner.

When choosing an object, do not forget that the loan amount has limits. If the living space costs more than 2.4 million, Rosvoenipoteka has the right to refuse to repay the loan in full and, most likely, it will do just that. You will have to pay the difference out of your own pocket.

It is worth remembering the requirements put forward by Rosvoenipoteka and banks for apartments. Real estate should not be in disrepair or dilapidated condition and should be located on the territory of the Russian Federation.

Step 3. Finding a bank to take out a loan

The list of banks that agree to work with VI is quite extensive. Almost all major financial companies in Russia and several regional banks are members.

Personally, I recommend choosing a lending institution with which you already have an account. Many military personnel choose Sberbank out of habit, but those who have already used the services of this company to purchase an apartment via VI note the low speed of service and high requirements for real estate.

TOP 5 banks offering mortgage lending services to the military:

1. Svyaz-Bank.
2. VTB 24.
3. Mosoblbank.
4. Gazprombank.
5. AK Bars Bank.

The procedure for obtaining consent for a loan in all organizations is similar, as are the requirements for documents. You will need a passport, a certificate of loan rights, and papers for an apartment.

If the bank makes a positive decision on your request for a loan, then the next step is to contact Rosvoenipoteka with an application for issuing a CZL.

Step 4. Execution of the CLP agreement

The targeted loan agreement is signed by employees of the Federal State Institution Rosvoenipoteka after checking the documents you provided from the bank and personal documents proving your identity and right to participate in the NIS.

The decision on the transfer of funds is made within 10 days. If all documents are genuine and the apartment meets the established requirements, assets from the military personnel savings account are transferred to a bank account as a down payment on a mortgage loan.

The agreement on the issuance of the CLP is transferred to the bank. To speed up the process, you can transfer the contract yourself, since through government channels it takes about 14 days to reach its destination.

Step 5. Registration of ownership of the apartment

The apartment becomes your property only after the bank pays the required amount to the developer or seller.

Only after all the above procedures do you have the right to sign a purchase/sale agreement and carry out state registration of the property.

At this stage, you need to insure the apartment with an insurance company. Usually a comprehensive contract is signed, under which the life and ability to work of the owner and the apartment itself are insured.

The borrower receives the long-awaited keys and can celebrate a housewarming party in the new apartment. True, in fact he is not a full-fledged owner of the property. His apartment is double-collateralized - by the bank that issued the loan and by the state.

For clarity, the scheme of actions when buying an apartment using VI is also presented in the form of a table: