Good morning, Dear readers of the financial magazine "RichPro.ru"! Today we continue the conversation about mortgage lending and talk about mortgages without down payment: how can you take it in 2017 year and which banks are willing to issue a mortgage loan without down payment.
You will learn from this article:
- What is the down payment on the mortgage and where it goes;
- What are the features of mortgage loans with zero down payment;
- What are the ways to get a mortgage in the absence of money for the down payment;
- In which bank you can take a mortgage without down payment;
- Who will help in obtaining a loan to buy a home.
At the end of the publication you will find answers about the mortgage without down payment, which arise in most applicants for such a loan.
The article will be interesting to everyone, who is interested in mortgage lending. We advise you to pay special attention to the presented publication, who wants to get a loan to buy your own home, but does not have enough money to make the down payment.
As they say, time is money! So do not waste a minute, start reading right now!
About that, how to get a mortgage without down payment: which methods are the most popular and in which bank you can get a mortgage loan without down payment - read in this issue
1. What is a down payment on a mortgage and why do you need it?
Down payment when applying for a mortgage is called part of the value of the purchased real estate, which must be the borrower to obtain a bank loan.
Depending on the mortgage program you choose, the down payment may not be available at all, and can achieve Ninety% real estate prices, purchased.
Traditionally, the sources of down payment can be:
- cash savings;
- consumer credit;
- available real estate, which will be sold.
Borrowers should keep this in mind, that in the presence of an initial contribution of, exceeding Seventy% the cost of the apartment, purchased, a mortgage replacement scheme may be beneficial consumer credit.
This approach will not only greatly simplify the procedure for obtaining a loan, but also reduce the level of necessary costs. This is due to the fact, that in consumer lending no commissions and insurance payments, inherent in the mortgage.
However, the scheme described above is not suitable for everyone, after all, usually the decision to issue a mortgage is made by citizens, in which there is a much smaller amount as a down payment.
Today, banks allow you to issue a mortgage with a very small contribution and even in its complete absence.
But it is worth bearing in mind, that when calculating the possible loan amount, the bank takes into account the cost of the apartment, which will be established during the analysis of the real estate object appraiser.
If the seller has set the price for the apartment above the estimated, then the minimum down payment is unlikely to succeed. The bank calculates the maximum possible loan amount, based on appraised value.
The difference between the size of the mortgage obtained during the calculations and the market price of the apartment in full falls on the shoulders of the borrower and should be made as a down payment.
2. Features of the mortgage without down payment
Mortgage, for which there is no down payment, risky for a credit institution, and for the borrower.
To 2008 year mortgage programs, which do not require savings, were widespread throughout Russia. At that time, real estate prices were growing much faster, than managed to accumulate the amount, sufficient for the down payment.
However, she thundered economic crisis led to that, that many banks have had to abandon mortgage lending programs without a down payment. And it happened even in spite of higher rates on similar programs.
However, when applying for a mortgage without down payment, the risks are high not only for the credit institution, but also the borrower.
If solvency the debtor for any reason will decrease, after the sale of the apartment he probably will get absolutely nothing. It has to do with that, that in the first years most of the payment goes to repay interest. The amount of debt remains unchanged.
If the cost of the apartment from the time of purchase will decrease, there is a possibility, that the borrower will remain due to the bank even after the sale of the mortgaged apartment.
Many borrowers believe, that a mortgage for them is ideal, which will replace the rent by paying for your own apartment.
The following circumstances should be taken into account:
- usually the monthly mortgage payments are much higher, than rent;
- may require at least minimal savings for that period, when you already have to pay for a mortgage, but the lease cannot be abandoned yet (example, accommodation will not be designed, repairs and other reasons are underway).
The state is making every effort, to make mortgages more affordable. Therefore, lending for the purchase of housing with a minimum down payment is actively developing.
Today AHML (Housing Mortgage Lending Agency), whose units are open in most Russian regions, offers mortgage programs with a contribution Ten%.
But it is worth bearing in mind, that such conditions provide for the conclusion of additional insurance contracts. Naturally, this increases the amount of the final overpayment.
Most banks do not welcome mortgages without a down payment, as the lack of savings may indicate low income, as well as insufficiently well-organized financial discipline.
Experts advise prospective borrowers to check the reality of mortgage payments. This is enough for a long period (not less than six months) to deposit in a separate bank account a sum of money in the amount of the planned credit payment.
If there are no problems with this, and the remaining funds will be enough to live, you can safely apply for a mortgage loan. The accumulated funds can be used as a down payment or as a financial reserve in case of any problems.
It is not easy to find a mortgage program without a down payment. That's why those, who does not have the funds to pay it there is another option for a mortgage - to get funds for the down payment through consumer credit. About that, how to take a consumer loan, we have already told in one of the previous articles.
In this case, it should be borne in mind, that the rate on such a position is much higher. But it will be repaid in a much shorter time.
Tim, who chooses this method of mortgage, should be borne in mind, that in the first years the payment will be much higher, after all, you have to pay two loans at once. That is why you need to carefully assess your financial capabilities.
Popular options for obtaining a mortgage without down payment
3. How to get a mortgage without down payment - TOP-7 design options
The economic crisis has reduced the popularity of mortgage lending in Russia and the former Soviet Union. Statistics show a significant drop in mortgage demand over the past two years almost on twenty%.
Experts suggest, that in the absence of changes in the economic situation in Russia, the decline in mortgage lending will continue. In such circumstances, credit institutions are forced to treat potential borrowers more loyally, and develop more attractive mortgage programs.
At the same time, banks can not afford to reduce the rate to the level Ten%. Under current inflation, this will lead to unprofitable mortgage lending.
In times of crisis, credit institutions do not welcome the issuance of mortgages without down payment. Yet, there are several ways, which allow the borrower to take out a mortgage loan, not having sufficient savings. About that, how to take a mortgage on an apartment or other housing, we wrote earlier.
Version 1. Preferential mortgage programs
For vulnerable categories of citizens the state has developed several programs, whose purpose is to help improve living conditions. About that, what programs operate today in the place of residence of the applicant, can be found in local authorities.
Most benefits are provided to servicemen, young families, and young teachers. Mortgages for the first category differs in the scheme of implementation, therefore, we will consider it separately.
Citizens can take advantage of social mortgages, whose age does not exceed Thirty-five years. To participate in the program, you need to contact local authorities to confirm the need to improve living conditions.
With a positive decision to participate in the project, the applicant will be placed in the queue for receipt housing certificate. After, how help will be provided, there are several options for its use. The most popular is to send subsidized funds to pay the down payment.
pay attention, that is usually the amount of subsidies does not exceed Ten% the cost of housing. Therefore, banks, developing government-backed mortgage programs, set the down payment at this level.
There is another important condition - the limited validity of the housing certificate. He is 6 months, it is during this time that you should choose a bank, find suitable housing and complete the agreement.
It is important to keep in mind, that the right to work with social mortgages is only those banks, who are partners AHML.
Version 2. Military mortgage
This option is ideal for those, who decided to take out a mortgage, not having the funds to make the down payment. But this method is available only to servicemen.
There are several steps you can take to begin the process of obtaining a military mortgage:
- Become a member of the savings and mortgage system;
- Across Three year from the moment of registration in the program to apply to Rosvoiepotek;
- When obtaining a mortgage permit in the previous step to find a bank, who works with a military mortgage;
- Choose a suitable residential property, which can be located in any region of the country;
- Sign the necessary documents and become the owner of an apartment or house.
The advantage of a military mortgage is that, what about the participants of the program Ministry of Defense of the Russian Federation makes not only the initial contribution, but also subsequent monthly payments.
But there are limitations:
- the right to a subsidy is valid subject to the conscientious performance of official duties;
- the maximum amount of grants is 2,2 millions of rubles.
It should also be borne in mind, that until the full repayment of the mortgage loan housing will be encumbered double collateral - by the bank and the state.
This means, that dispose of real estate at its discretion (example, sell or donate) the serviceman will not succeed.
Version 3. Mortgage with parent capital
Maternal capital is one way to get help from the state. The subsidy is provided to families, who had a second child.
Use of parent capital as a down payment on a mortgage loan
One of the ways to use the grant is to make a down payment when applying for a mortgage loan.
To date, the amount of parent capital is 426 thousand rubles. On average, this amount allows you to cover about twenty% the cost of housing. Therefore, parent capital is usually enough to pay the down payment.
An important fact is that fact, that when applying for a mortgage you can use the parent capital immediately after the birth of a child (unlike other uses, when to wait Three year).
Before the subsidy is transferred to the credit institution, the applicant must obtain a permit from the Pension Fund, which is issued to Two months.
With this in mind, the algorithm for the borrower will be as follows:
- Search for a developer or owner of a finished apartment, who will agree to sell the property using parent capital;
- Obtaining a permit from the Pension Fund on the use of parent capital to purchase housing;
- Search for a credit institution and, accordingly, the choice of mortgage program, in which you can get a loan to buy a home, using parent capital as a down payment;
- Applying for a mortgage loan;
- In case of a positive decision to sign contracts, making the first installment with a state certificate, registration of housing in the property with the imposition of encumbrances.
By the way, those, who already has a mortgage loan, have the right to direct the parent capital to repay the principal debt under the contract.
Version 4. Marketing promotions
Today, many banks are developing different ones to attract customers mortgage shares, including its design with zero down payment. Most often, such actions are held in conjunction with developers, seeking to increase sales.
This option can not be called reliable enough. Will have to wait long enough, when the promotion is launched. in addition, the choice of real estate for such programs is traditionally limited.
Version 5. Mortgage secured by existing real estate
Another option for a mortgage in the absence of money on the down payment - to use instead of real estate owned by them.
Most banks go for it easily, since such a scheme is beneficial to them. For borrowers, this option hides significant risks.
There are a number of conditions, presented for real estate, which is planned to be pledged:
- possibility of use for living;
- high liquidity of the real estate object;
- stay in a certain bank area.
It should be borne in mind, that the amount of the loan secured by real estate usually does not exceed Seventy% from the real value of the property.
Version 6. Collateral
As an additional support, which will replace the down payment, can speak pledge of any valuables.
It can be more than just real estate, but also the following assets:
- car;
- land plot;
- precious metals;
- securities.
Credit institutions usually accept highly liquid profitable investments as collateral. Banking experts are well versed in investing, therefore, they are unlikely to agree to accept questionable assets.
Version 7. Receiving down payment through consumer credit
Previous options are not available to everyone. Many citizens do not own expensive property, that they do not have state support.
In this case, some are decided on consumer loan, which is then sent to pay the down payment. Sometimes credit institutions even offer special programs. We have already written in a separate article, how and where to get a loan without refusal.
Experts recommend resorting to this option as a last resort. Don't forget, that the burden on the family budget at the same time will increase significantly.
In this case, you must first apply for a mortgage, and consumer credit to issue only after her approval. About where to get a loan without refusal, we have already told in the last material.
Statistics show, that most mortgage problems are related to the need to repay several loans at once.
So, even in the absence of funds for the down payment, there is a chance to get a mortgage. It is important to explore all available options and make the right choice.
Review of banks, in which you can take a mortgage without down payment
4. Which banks give mortgages without down payment - TOP-5 banks with the best conditions
In the struggle for customers, more and more banks are developing mortgage lending terms, providing absence down payment. However, not all programs can be considered profitable for borrowers.
To understand, which conditions are the most favorable, will not just study, but also compare the programs of different banks. Quite naturally, that the best interest rates can be found in the largest credit institutions in the country.
The table below shows the interest rates in 5 the best of them:
| № | Credit organization | The program | Bid (% annual) |
| 1. | Альфа-Банк | Mortgage secured by residential real estate | 12,3 |
| 2. | Savings Bank | Mortgage lending with parent capital | 12,5 |
| 3. | ВТБ24 | Military mortgage | 13,0 |
| 4. | Delta Credit | Consumer loan for the first mortgage payment | 15,0 |
| 5. | Zapsibkombank | Mortgage loan without down payment | 16,0 |
5. Assistance of brokers in obtaining a mortgage loan without down payment
Finding the best mortgage program is not easy. There are a huge number of offers on the market today, which should not only be analyzed, but also to compare.
The difficulty of choosing a mortgage program becomes even greater, if the borrower does not have the funds to make the down payment, as well as the right to receive state subsidies.
Simplify the search procedure, as well as save time on its implementation help mortgage brokers. These are specialists, who are well versed in all the intricacies of credit products on the market.
Quite naturally, what brokers charge for their work commission. But with that in mind, that most often they seek the most favorable conditions for the client, the borrower ultimately wins.
In big cities there are usually quite a few brokerage companies. In small settlements, professionals often operate on the basis of real estate agencies.
It is important to choose brokers, who have an impeccable reputation.
In the capital, the leaders in the market of mortgage brokerage services are:
1) Royal Finance
The employees of this broker have extensive experience in various credit organizations.
Therefore, they are well versed in all the intricacies of the mortgage.
2) LK-credit
Though, that the company has been in the brokerage market recently, she has already managed to win the gratitude of a huge number of customers, as well as an impeccable reputation.
There is no requirement to make any prepayments, and all commissions are charged exclusively in accordance with the contract.
3) Credit laboratory
The company's employees have extensive experience, accumulated over many years of fruitful work.
This helps prepare the borrower for the most extraordinary requests of banks.
So, Russia has a huge number of mortgage brokers. When choosing that, with whom cooperation will be carried out, the main thing is not to fall for scammers.
The main feature, which allows to distinguish them from conscientious assistants - the requirement to make a commission before, how anything will be done.
6. Frequently asked questions (FAQ)
Applying for a mortgage is not an easy task. It is even more complicated, if the funds for the first installment are missing.
Quite naturally, that this process raises a lot of questions. We will try to give answers to the most popular of them further.
Question 1. You can take a mortgage without down payment and mortgage?
That the bank agreed to issue a mortgage, one of the conditions must be met:
- the presence of a reliable guarantor;
- is entitled to state subsidies;
- availability of valuable property, has a fairly high level of liquidity.
Only in these cases it is possible to find programs, which provide for the absence of down payment.
Some mortgage applicants are naive, that a mortgage is sufficient to obtain approval of the application. But this is fundamental not true.
Encumbrance for an apartment is a prerequisite for mortgage lending and can not eliminate the need to make a down payment. It turns out, that the pledge is made obligatory.
Question 2. Is it possible to get a mortgage from the developer, without down payment?
Developers are fighting hard for every buyer.
To speed up the sale of apartments in buildings under construction, construction companies often conclude agreements with banking organizations, which offer a variety of unique programs to attract borrowers. in addition, in some cases, you can get a loan directly from the developer.
In the first case, the mortgage is issued through a bank. There are a number of advantages over the situation, when there are no agreements with the developer.
Let's list them:
- more loyal credit terms;
- most often the developer's staff conducts consultations, help to collect a package of documents, which they themselves transfer to the bank;
- expedited consideration of the application;
- higher probability of a positive decision.
The peculiarity of the second option is that, what you do not have to go to the bank. The loan agreement will be concluded directly with the construction company.
This option has significant advantages:
- you do not need to submit income documents;
- failure is unlikely;
- there is no need to take out insurance.
But there is a significant one minus - the term of the contract usually does not exceed One year. In very rare cases, developers agree to issue it on 2-3 year.
It turns out, what a similar option is regular installments.
Question 3. It is worth taking a mortgage on secondary housing with zero contribution and whether there is a benefit?
Many, who dreams of buying their own home, no money to pay the down payment. In these conditions mortgage without down payment may be the only solution. But it is best to try to find an opportunity to make at least some amount as a down payment.
The point is, that in its complete absence the rate is traditional above at least on 3%. Given the long terms and amounts of mortgages, the overpayment can be huge.
The amount of the loan when making the first installment will be significant Less. This leads to a reduction not only in overpayment, but also the size of the monthly payment.
In any case experts recommend carefully analyze all possible programs.
Often, after simple calculations, prospective borrowers decide to give up the mortgage without down payment. Instead, they save money for several years, until the amount of the initial payment accumulates.
If it is not possible to wait for the moment, when the funds for the first installment will be accumulated, will still have to use programs without it.
7. Conclusion + video on the topic
For many, a mortgage without a down payment becomes the only way to live in your own apartment. It is not easy to issue it, especially in cases where there is no right to state assistance.
Yet, nothing is impossible. The main thing is not to give up and carefully analyze all the proposals available on the market.
In conclusion, we advise you to watch a video on the subject of mortgages without down payment:
The team of the online magazine "RichPro.ru" wants its readers to get the best mortgage loan and hopes, that it will be repaid quickly and without problems.
If you have any questions, then ask them in the comments below. We will also be grateful, if you rate our article and share it on social media with your friends. Until We Meet Again!