The presence of an initial payment (at least 10% of the total amount) in most cases is a prerequisite for obtaining a mortgage. But borrowers do not always have such funds.
Even in the absence of a down payment, some banks are ready to provide mortgage loans. Such programs are in high demand among the population. For a young family, saving up for a down payment is often quite problematic, since many couples are initially forced to rent an apartment.
The main advantage of full value home mortgages is that there is no need to save money for a down payment. Thanks to such credit programs, many borrowers have the opportunity to buy an apartment right away.
The main disadvantage of mortgage loans without a down payment is a higher lending percentage. It is calculated taking into account the additional risk insurance of the lender.
However, getting a mortgage without a down payment will be extremely problematic. If before the 2008 crisis banks were quite willing to provide such loans, now many credit institutions have curtailed such programs. The fact is that mortgages without a down payment for banks are objects of increased risk. The lender perceives such a borrower as a person with insufficient income or poorly organized (unable to save money).
It should be borne in mind that the bank provides mortgages based on the appraised value of housing. If the price that the seller asks for is higher than the estimated one, then you cannot do without a down payment.
Mortgage secured by existing real estate
A significant factor that contributes to making a positive decision on granting a loan is the availability of liquid security for the loan or collateral. In particular, many banks provide mortgages secured by an apartment or a share in it.
Many banks provide mortgages without an initial payment secured by real estate, among them are Sberbank, Alfa-Bank, Nomos-Bank, Raiffeisenbank.
The requirements for the borrower in this case are still more stringent than with a classic mortgage. His income must be high enough, and his credit history must be impeccable.
Using maternity capital as a down payment
Since 2009, maternity capital can be used to pay off the mortgage, but for this, the child must be three years old at the time of receiving the loan. If a young family simultaneously has the right to participate in the "Social Mortgage" program, maternity capital can cover up to 30-40% of the cost of an apartment.
In order to use maternity capital to pay off the mortgage, it must be 100% safe, i.e. it cannot be spent for other purposes before obtaining a mortgage.
Getting a consumer loan for a down payment
Finally, it is possible to take a regular consumer loan for a down payment or consider a "double" mortgage.
In the first case, the borrower takes a consumer loan for the first installment. It is less profitable in terms of interest rates, but more profitable in terms of overpayment (since the term of such a loan is shorter). In the second case, the borrower takes two mortgages, the first for the down payment, the second for the purchase of an apartment. The first mortgage is taken on the security of the existing real estate, the second - on the security of the purchased apartment.
It should be borne in mind that banks can reduce the size of the loan provided due to the presence of another outstanding loan.
