Often, citizens of Ukraine cannot use all the benefits of modern civilization. To limit their own financial resources, they find themselves in difficult housing conditions, which can only be solved by a preferential lending program. So what is this program? And what other programs does the state offer Ukrainians? What are their pros and cons?
Affordable Housing Program: Has Housing Become Affordable?
Housing problems have always existed and were relevant. Someone is trying to leave with their parents, leave their father’s house and start a family, someone on the contrary has started a family and is waiting for replenishment, while someone cannot share the living space with their brothers and sisters, inherited. In a word, the housing issue has always been and will be one of the most important in human life.
It is known that in Russia in order to improve the living conditions of youth, a special program of soft loans was developed. As a result, more than 10,000 families were able to purchase apartments on credit and solved their housing problems. The Ukrainian government, however, decided to repeat the policy of the Russian state and developed its own program, which it called “Affordable Housing”. But did housing make it more affordable? Let’s figure it out.
So, the state program of soft loans, relatively speaking, is divided into two sections: a program whose purpose is to reduce the cost of mortgage loans issued at 16% per annum and a program popularly called “30/70”.
The essence of the 30/70 program is that those who want to get housing on credit must pay 70% of its cost, and 30% is paid by the state. At the same time, these 30%, according to the creators of the program, are provided to citizens of Ukraine free of charge, and not on loan. In addition, this presidential program of preferential lending allows one-third to reduce the cost of buying a home for young families and saves them from paying additional fees and other costs.
Even despite such seemingly acceptable conditions
There is not much excitement around this municipal program. And the thing is that under the terms of the program there are certain restrictions for its participants. For example, there are restrictions on the cost of housing on credit, on the area of a credit apartment or house, etc. For example, citizens who decided to take part in the program joined the queue and registered.
After that, they need to wait their turn and in the meantime choose housing, based on the fact that there should not be more than 21 m2 per family member. In addition, the cost of 1 m2 of housing purchased on credit should not exceed 7990 hryvnia (applies mainly to residents of Kiev) and no more than 6435 hryvnias (applies to the Kiev region). Accordingly, if a couple liked an apartment with a larger living space, then it should pay the surplus from its own pocket.
So it turns out that not everyone can get this type of loan under a preferential program. And those who can draw up an additional loan at the bank by presenting the following package of documents:
- Original statement;
- The original certificate attesting that the borrower is registered in the apartment;
- Originals and copies of passports of family members living with the borrower:
- The original and a copy of the birth certificate (if the family has minor children);
- Original and copies of TIN (all family members);
- Declaration on the amount of income (at the request of a credit institution);
- Certificate of income for the last half year (all family members);
- The original and a copy of the employment record of the main borrower;
- Original certificate of the complete family;
- The original and a copy of the marriage certificate (if the marriage is official);
- Original certificate from the state fund confirming participation in youth housing construction;
- Original income statement and TIN of the guarantor.
Another program to reduce the cost of housing at 16% per annum or preferential mortgages involves issuing borrowers a bank loan in national currency at 16% per annum for up to 15 years. At the same time, of these 16%, residents of Ukraine can pay only 3%, and the remaining 13% will be paid by the state structure. But this seemingly acceptable program also had its drawbacks, the main one of which was making an advance payment of 25% of the cost of credit housing. However, this amount is calculated based on established standards. So, for one citizen, or a married couple without children, there should be no more than 40 m2, for a family of three people – 58 m2, and for a family of 4, 5 or more residents – 76 m2.
What is a soft loan program in Ukraine?
And most importantly, you can take on credit not all housing ideas, but only those that implement, state-approved developers. But even not all of them participate in the loan program from the state, and those who participate offer either new buildings or residential buildings built in 2007.
In addition, when issuing such a loan under a preferential program, borrowers will additionally need to pay 0.25% of the total cost of real estate for insurance, 0.6% of the amount for paying the insurance of the borrower himself, 2000 hryvnias for paperwork with a notary, 0.1 % of the cost of housing – state duty and 1% to the Pension Fund.