What Is Military Mortgage

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What Is Military Mortgage
What Is Military Mortgage
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Reliable defense of the state is impossible without military specialists who receive decent wages and are provided with housing. In 2004, a law was passed making it easier for the military to buy apartments, and the Ministry of Defense, not the borrower himself, will repay part of the loan.

Military mortgage
Military mortgage

Benefits of a military mortgage

The term "Military Mortgage" appeared in 2004 with the adoption of the Federal Law "On the Savings and Mortgage System of Housing for Servicemen." Any military man can take out a mortgage under this system, including officers, warrant officers and warrant officers who have a service life of at least 3 years, sergeants, foremen, sailors and contract soldiers. An important condition is a long service life, the date is set to January 1, 2005, from which accumulations are counted.

As soon as 3 years have passed since the start of participation in the accumulative mortgage system (NIS), a soldier can purchase any apartment, and not necessarily near the place of service - it can be any point in Russia. It should be noted that rooms in communal apartments, houses with wooden outer walls, "Khrushchevs" and "small families" are not suitable for purchase.

The essence of the program is as follows. Each year, the state transfers a certain amount to a registered bank account, which is the same for everyone. In 2013, the assessed contribution was 222,000 rubles, that is, 18,500 per month, in 2014 - 233,100 rubles. Such subsidies are transferred within 20 years, thus, the total amount of savings can be more than 2 million rubles. You can submit a report on the purchase of an apartment as early as 3 years after the start of the service. If an officer leaves his duty station, he no longer has the right to use the savings in the NIS.

Stages of registration of a military mortgage

If a soldier decides to use a military mortgage, he has to go through several steps. First you need to submit a report and obtain a certificate of eligibility to participate in the program. Then he will find housing that will suit him, the Ministry of Defense and the insurance company. Moreover, you can choose expensive housing, but you will have to pay extra from your own pocket.

Then you should choose a bank. This could be the Agency for Housing Mortgage Lending, Sberbank, Gazprombank, Svyaz-Bank, VTB24, Zenit Bank. Each has its own program, interest rates, commissions, insurance premiums, etc. You can analyze it yourself or using the Internet and choose the most favorable conditions for yourself.

The maximum loan term is until the borrower reaches 45 years of age. However, it also cannot exceed the maximum duration of the NIS program (20 years from the beginning of service or the beginning of the transfer of contributions).

Finally, the bank is selected, the documents are approved, the contract is signed. The mortgage payments will be made by the Ministry of Defense, but only within the allocated amounts (in 2014 - 19,425 per month), the rest of the amount will be paid by the borrower himself, depending on the terms of the signed agreement.

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