How to build a house yourself using money from maternity capital?
Since 2010, families with two or more children have the opportunity to receive maternity capital to build a house on their own, but previously this was allowed only by concluding an agreement with a contractor. You will still have to purchase the plot yourself, since Federal Law No. 256-FZ dated December 29, 2006 “On Additional Measures...” provides for the disposal of funds only for the purpose of improving living conditions, and the purchase of a land plot does not apply to them.
How to buy a plot of land with maternity capital, are there legal ways?
To receive what is due under the Law, Certificate holders need to visit the territorial division of the Pension Fund when the child turns 3 years old, or if approximately 1 month remains before his date of birth - this is the same period during which the provided documentary information is analyzed and a decision is made. In addition to construction from scratch, the Law also provides for the issuance of funds for the reconstruction of a house located on an individual housing construction site.
What you need to take with you to the Pension Fund:
- A certificate confirming the ownership of a land plot by the Certificate holder or his spouse (husband), or documents confirming the right of perpetual possession, inheritance, lease or free use of land.
- Permission to build a residential property.
- For restoration or reconstruction - Certificate of ownership of the building.
- A written assurance indicating that the house will be re-registered as joint family property within a maximum of 6 months after completion of construction work.
All documents are reviewed for no more than 30 days, after which a decision is made to transfer or refuse to pay 50% of the amount of family capital - this is the amount established by clause 1.1, part 1 of Art. 10 Federal Law No. 256. All finances are transferred to the applicant’s bank account. The remaining part can be used only after 6 months and after providing information confirming that construction was actually carried out during these six months.
When reconstructing and restoring the premises, in order to issue the remaining amount, certificates will be required indicating an increase in living space by at least one accounting standard approved by the local administration.
Maternity capital for building a house on your own
Let's figure out what documents will be needed to obtain a certificate for maternity capital, as well as for what needs it can be directed and used.
What documents will you need?
To carry out the construction of a residential building using maternity capital funds, you will need the following documents:
| Original certificate | To receive family capital |
| Title documentation for the land plot | On the territory of which construction is planned. The plot must belong to one of the spouses |
| Permits | From local government for construction |
| Construction contract | If construction work is carried out by employees of a third party company |
| Marriage certificate | If the plot belongs to the spouse or he is building a house on his own |
| Passports of the applicant and his spouse | — |
| Written obligation to formalize the completed house | In common ownership of all members of the applicant's family |
How can you spend MK
Let's consider two ways to use maternity capital funds, depending on whether the family engages a third-party organization to build a house or carries out construction work independently:
| If a family builds a house without the involvement of construction workers | Then the maternity capital funds are sent to the applicant in two equal parts. Then the money is transferred to the applicant’s account details specified when submitting the application. After submitting the application, the first 50% of the amount is transferred to the applicant’s account within 2 months. The second half of the amount can be received no earlier than six months later, and it is necessary to provide evidence of the first stage of construction work |
| If the construction of an individual housing construction project | It is carried out with the involvement of a third-party company; it is necessary to provide a construction contract. In such a situation, the full amount of maternity capital is sent in one tranche to the account of the construction company |
The legislation allows the use of maternal capital for the construction or reconstruction of a residential building.
However, these funds cannot be used to purchase a plot for individual construction.
Therefore, the pension fund, in case of an application for maternal capital to purchase a plot, refuses the applicant.
How to report correctly
To receive the second tranche of maternity capital, you will need to provide documents that confirm the fact of the first stage of construction work. That is, you need to confirm that the foundation, load-bearing walls, and roof were erected.
Such a supporting document is the inspection report, which can be ordered from the authorized body.
Video: maternity capital - for building a house
In most cases, it is necessary to contact the architecture and construction institution of the local administration.
Please note that if the work is not completed in full, you may be refused to issue such a certificate. You can appeal an unlawful refusal in court proceedings.
How to spend maternity capital on building a house if the child is under three years old?
The answer to this question is definitely no, with the exception of fulfilling loan obligations. But there is a second scenario: before your daughter or son reaches the age of three, you can build your own home at your own expense, keeping all checks and receipts from the construction company (if it was hired for the work). When you reach 3 years from the date of birth, apply to the Pension Fund for compensation.
What you will need for this:
- Certificate of ownership rights to land area.
- Certificate of the right to dispose of a residential property built no earlier than January 1, 2007 by a State Program participant.
- The owner’s assurance that within 6 months the building will be transferred to the common ownership of the entire family, if such a right has not been formalized before.
Legal ways to use maternity capital until a child is 3 years old.
How to apply for maternity capital to buy a house
Before you buy a house with maternity capital, you need to make sure that according to all documents it is considered residential. Banks practically do not agree to give a mortgage loan to buy a house. In 99% of cases, they are more likely to approve a mortgage to buy an apartment or buy a room using maternity capital.
It is better for the certificate holder to find an inexpensive house of sufficient space in the suburbs and directly use the subsidy to purchase it.
A house in a village may well meet the necessary requirements if all the infrastructure is nearby, including a clinic and transport stops. Do not confuse a house in a village with a dacha in a holiday village.
You cannot buy a dacha with maternity capital, since dacha buildings are not considered residential; they are built on agricultural land and do not have the possibility of registration.
First you need to draw up a purchase and sale agreement with the owner of the house. A house whose price is higher than the total amount of funds under the certificate can be partially paid for with family funds. If the owner does not object, the purchase is made with installment payment, and in this case the owner of the certificate will receive ownership rights only after the transfer of the last part of the payments.
In order to buy a house using maternity capital, you need to submit the following documents to the Pension Fund:
- Passport of the certificate owner, SNILS.
- A copy of the certificate of ownership of the seller’s house (and/or from his/her spouse, if the house is registered in common ownership), the seller’s bank details.
- A copy of the purchase and sale agreement. In case of purchase with installment payment, a certificate from the seller about the amount of the remaining unpaid amount under the contract.
- An undertaking certified by a notary from the future owner of the house that he or she undertakes to register all family members in the house.
How to use maternity capital to build a house on credit?
If you can’t build a house yourself, you can take out a loan from any financial company and use the capital to fully or partially repay it, if the child is under 3 years old. In this case, you need to bring a whole list of documents to the Pension Fund:
- Loan agreement.
- Details of the balance of debt or unpaid interest on a loan from the bank.
- Certificate of ownership of the object built on credit.
- A copy of the building permit (if the housing has not yet been completed or the work is at the initial stage).
A written commitment indicating that the house will be registered in everyone’s name within six months after the money has been accrued.
Is it possible to use maternal capital to build a house?
Maternity capital can only be used in several targeted areas, one of which is improving the living conditions of the family after the birth of the second child. Contrary to existing belief, funds can be spent not only on buying an apartment or paying off a mortgage loan. The money can be used for individual housing construction or reconstruction of existing residential premises, including the foundation.
The amount of maternity capital of 453,000 rubles is unlikely to be enough for a family to pay for construction work, except in cases where small investments are required for the construction of a residential building. In other cases, capital for construction can be used to purchase the necessary building materials. In addition, the family can apply for a payment under the certificate upon completion of construction work in order to compensate for part of their own funds.
Maternity capital for building a house on your own or with the involvement of a company can only be used with complete and competent documentation of all work performed.
The received documents must be transferred to an employee of the Russian Pension Fund along with an application for payment of funds from maternity capital, as confirmation of the intended use of the money.
How to use maternity capital for equity participation in the construction of a house?
Even if the housing facility has not yet been completed, Certificate holders can also claim reimbursement of costs by contacting the Pension Fund of the Russian Federation with the following documents:
- An extract from the register of the cooperative.
- A certificate of the contribution already made and the remaining debt.
- Charter of the cooperative community.
- A completed certificate confirming the mandatory registration of the house for all family members within 6 months from the date of construction.
Find out the answer to a subtle question: is maternity capital due if twins are born?
How to get maternity capital
The amount for building a house using maternity capital in 2019 is 453,026 rubles. To receive this amount, the family needs to comply with some rules and conditions:
1. State support can be received by a person who has the right, for example:
• a man, if he is the only adoptive parent of the 2nd child and subsequent ones;
• a woman who single-handedly gave birth to or adopted a second child and subsequent ones;
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• father or adoptive parent who took over the right from the woman due to its termination (deprivation of parental rights, death);
• a child, if the right of state support for some reason has been terminated from the mother and father.
2. A person who decides to build a house using maternity capital is a citizen of the Russian Federation at the time of the birth of the child. Children must receive Russian citizenship status at birth or adoption. Sometimes compliance with the rule is not necessary, for example, this happens when the right to compensation passes to the father.
3. The program to support citizens for building a house using maternity capital is valid only from 01/01/2007 to 12/31/2016. Parents of children adopted or born only during this period receive financial support from the state.
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4. Proper registration of receiving compensation in accordance with the law is required, with the necessary list of documents.
How to receive compensation from maternity capital funds for an already built house?
If the circumstances are such that the family cannot wait for the youngest offspring to reach 3 years old, then they can begin building a house immediately after his birth. The Pension Fund of the Russian Federation compensates all costs based on the amount of maternity capital that will be paid after the baby turns 3 years old.
So, if in 2020 you decided to use maternity capital to build a house on your own after its construction, we recommend paying attention to the following points:
- ownership of the individual housing construction object should arise no earlier than 01/01/2007;
- the plot on which the house stands must be owned by the recipient of the certificate or his spouse.
To compensate costs, we contact the Pension Fund of the Russian Federation with the following documents:
- certificate for maternal capital;
- passport;
- Marriage certificate;
- SNILS card;
- statement;
- document on ownership of the site;
- document on ownership of the house;
- a certificate from the bank confirming the availability of an account for the transfer of maternity capital funds.
The Pension Fund of the Russian Federation reviews all documents and, if there is a positive decision, transfers maternity capital in a one-time payment to the specified account.
