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MIL OSI Translation. Region: Russian Federation –

Even more Russian banks will be able to issue preferential loans to citizens who are going to purchase housing using the Family Mortgage program. The decree on this was signed by the Prime Minister Mikhail Mishustin.

Previously, only credit organizations that had time to submit applications before the distribution of budget funds allocated for the implementation of the program could become program participants. The reallocation of funding also took place within the circle of the original participants.

The resolution, which was signed by Mikhail Mishustin, cancels this restriction. Now, when the budget is reallocated, new lenders will be able to apply for participation in the program. In addition, the functions of the operator of the program were transferred from the Ministry of Finance to the joint-stock company “DOM.RF” as a unified development institution in the housing sector. Its official website will publish information about the upcoming reallocation of funds within the program and the start of accepting applications from new banks.

“Family mortgage” appeared in 2018. The program was launched on behalf of President Vladimir Putin. Under the terms of the program, borrowers are guaranteed a loan rate for the purchase of a house or apartment no more than 6%.

Families with a second or subsequent child born from January 1, 2018 can receive a preferential mortgage. Program loans are also available to families with one child if they have a disability.

The down payment is 15% of the cost of housing. The maximum loan amount depends on the region. So, for Moscow, St. Petersburg, Moscow and Leningrad regions it is 12 million rubles, for other territories – 6 million rubles. The difference between the preferential and market mortgage rates is reimbursed to banks by the state.

EDITOR’S NOTE: This article is a translation. Apologies should the grammar and or sentence structure not be perfect.

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