Mortgage for the Unemployed in 2021

Housing lending provides an opportunity for low-income citizens of the Russian Federation to purchase their own housing. But, in order to obtain a large borrowed amount, the main condition of most financial and credit organizations is that the borrower has a constant income sufficient to fulfill loan obligations. Therefore, many are interested in how to get a mortgage for an individual without official employment and providing an income statement.

Who can afford housing loans without providing a salary certificate?

Some credit organizations provide borrowed funds on preferential terms to the following categories of Russian citizens:

private entrepreneurs;
freelancers;
employed Russian citizens to whom the employer gives wages in an “envelope”;
owners of real estate that they provide for rent;
individuals engaged in creative activities.

If it is not possible to officially confirm your own income, it is better to apply for a loan from small credit organizations that are just getting used to the financial market. They do not yet have a sufficient client base to make a permanent profit, so they are happy to see every client, and accordingly, they often make concessions.

For information: until January 1, 2021, Sberbank ran a promotion: get a mortgage loan without confirmation of official income, subject to a down payment of 30%.

Loan programs for purchasing housing:

loans for the purchase of residential real estate on the secondary market;
loans for the acquisition of land for development;
targeted loans for the purchase of apartments in new buildings;
loans for individual construction;
loans for equity participation in a housing project.

Each financial and credit institution presents a set list of requirements to its clients in order to obtain a housing loan. It may differ slightly from one lender to another, but the main ones are the following:

age category of the borrower – from 21 to 65 years;
minimum work experience – from 6 months to 1 year;
down payment for mortgage housing – from 20 to 50% of the market value of the purchased real estate.

But many Russian citizens today work unofficially, and at the same time have a stable high income, which allows them to timely fulfill financial obligations on a mortgage loan. Therefore, many potential clients are interested in how to obtain a mortgage for solvent borrowers without official employment.

What documents are required to apply for a mortgage loan?

You can take out a mortgage without official employment, but the borrower’s identity will be checked especially carefully and for a long time. Each bank sets its own requirements for the package of documents. In general, it is worth preparing:

general passport;
international passport (if available) with border crossing marks;
driver's license, PTS, if you own a car;
proof of income. These are statements of current accounts and debit cards, GPC agreements or property rental agreements, etc.;
marriage certificate (if available). If there is a marriage contract defining the order of ownership of real estate, it is provided to the bank.

If you plan to transfer an apartment, a summer house, or a plot of land to the bank as collateral, you will need:

extract from the Unified State Register of Real Estate. Standard validity period is 30 days. It should not contain encumbrances, for example, imposed by the FSSP or other banks;
certificate of ownership (if available). At the current time, this document is not issued in paper form;
appraiser's report. To conduct an assessment, it is better to contact an organization accredited by a specific bank. Otherwise, the document may not be accepted for consideration;
cadastral and technical passports or extracts from them;
insurance policy. During the lending period, the collateral is insured in favor of the lender;
documents confirming the transfer of ownership of real estate. This may be a privatization resolution, a purchase and sale or donation agreement, etc.

Recommended article: How to get a mortgage for a pensioner without a down payment

A similar package of documents is provided for the purchased housing. If co-borrowers or guarantors are expected, they are subject to the bank’s general requirements regarding documents.

The spouse automatically becomes co-borrowers, unless otherwise determined by the legislation of the Russian Federation or the current marriage contract.

Lending without official employment

Today, there are different options for obtaining borrowed funds to purchase a home without providing lenders with an official income statement, for example:

Payment by the borrower of the initial payment for mortgage housing on the day of concluding a loan agreement with a financial institution.
Attracting guarantors. They can be solvent relatives of the borrower, friends, work colleagues, etc. A prerequisite is that the guarantor must own any real estate.
Mortgage for individual entrepreneurs. When applying for a housing loan, individual entrepreneurs provide the credit institution only with an extract from the tax authority confirming the payment of taxes.

In some credit institutions you can get a loan without involving guarantors, income certificates and a down payment. But, in such situations, lenders, in order to reduce their own risks, provide borrowed funds at higher annual interest rates and for minimal terms.

How to confirm solvency without official employment?

In order to confirm solvency, it is not necessary to provide proof of income. There are enough documents confirming the level of expenses: contracts for the purchase of movable or immovable property, payment for commercial training, account statements with active receipts, the presence of a deposit in this bank.

Documents such as a civil passport, SNILS and TIN certificates, an agreement on voluntary health insurance and other types of insurance will serve as evidence of trustworthiness.

Consumer loan

Instead of a housing loan, you can take out a consumer loan. It is much easier to take it, since lenders have fewer requirements for potential clients under such loan programs.

Many financial organizations provide consumer loans without salary certificates and do not require applicants to have official employment. The borrower simply needs to indicate his monthly income in the application form to calculate the maximum possible loan amount. This document has legal force. It represents a contract between the borrower and the lender. On its basis, in case of violation of financial obligations, the borrower is subject to penalties.

When filling out the application form, it is important to provide only reliable personal information and the amount of monthly profit. The security service of the financial company providing borrowed funds will definitely check the accuracy of all information. If false data is detected, the application will be refused, and the applicant will automatically be blacklisted by the institution.

Providing a down payment

Paying the down payment for a mortgage home immediately after signing a loan agreement indicates the borrower's solvency. Therefore, credit institutions make concessions to such clients by not requiring documents confirming official employment and income certificates when applying for a mortgage. The more a borrower is willing to make a down payment for the home being purchased, the greater his chances of receiving a loan.

The minimum contribution when applying for housing loans is most often 20% of the market value of the residential property.

Banks giving mortgages without official employment

Which bank gives loans to non-performing borrowers? As of 2021, similar services are provided by a number of financial institutions in Russia:

Tinkoff;
VTB;
Sberbank;
Rosselkhozbank;
Delta Credit;
Opening (for Military Mortgage).

Contact small organizations offering special promotions . They fight for every client, so your chances of getting a loan increase significantly.

An application for a mortgage can be submitted either online or through a personal visit. The latter option is more acceptable, because each case is considered individually.

It should also be noted that each financial institution offers its own conditions. You can find out more information on interest rates, loan terms and the amount of the down payment on the official websites.

If none of the options suits you, try taking out a mortgage without a certificate or guarantee. However, remember that the price for such an advantage will be the shortest possible debt repayment period and an unusually high lending percentage.

To save time and effort, use the services of a mortgage broker. They will submit your application to several banks at once, which will significantly speed up the process.

Mortgage on preferential terms

Many Russian banks offer their clients housing lending programs on preferential terms. These are special products for individuals who do not have an official place of work and the ability to document their income.

But the main condition for obtaining a loan under such mortgage programs is that borrowers provide a large down payment for the purchased housing (50-60% of the market value of the property).

If there is no work experience, a housing loan can be obtained directly from the employing company, which is a partner of the lending bank. Many employers, in order to transfer wages to their employees, incl. not officially formalized, they sign relevant agreements with financial institutions. For an unemployed person, this lending option is the most profitable, since you can get a large loan amount at a minimum annual interest rate.

What documents are submitted to confirm solvency?

If a potential borrower cannot obtain a certificate of income from his official place of work, because he is actually working illegally, then with the help of other documentation he can confirm the presence of a permanent and specific income. Such documents include:

A certificate received from the employer for whom the citizen works. Although the paper has an arbitrary form and does not have legal force, many banks take it into account, so this can have a positive effect on obtaining a loan.
Receipts indicating that a citizen has received money from other individuals or companies, and the person receiving these documents must collect them for at least 6 months.
Civil contracts on the basis of which the potential borrower provided any paid services.
Certificates of work performed, paid at specific rates.
A statement received from a bank showing cash flows. If for this purpose the account of the institution in which it is planned to issue a mortgage loan was used, then this document will be positively received by employees.
A lease or lease agreement, if a citizen has any property that is transferred to him for rent or lease. This includes not only residential real estate, but also vehicles or specialized equipment.
Certificates received from various social services confirming that the borrower has received any benefits or other government payments.
Declaration of income for previous years. This document is optimal for brokers or freelancers, as well as other professionals who pay taxes.
An extract received from a brokerage account if the person’s main source of income is trading on stock exchanges.
Documentation confirming that the potential borrower has securities from which he receives dividends or other income.
Other papers that serve as evidence that a person has a constant and high income.

If the question arises of how to get a mortgage for an unemployed person, then to do this you will have to take all necessary measures aimed at submitting documentation confirming the availability of income. Without this, you won’t be able to count on purchasing an apartment on credit. Banks will often accommodate potential clients if they can prove that their income is sufficient to make timely mortgage payments.

Housing loan secured

Clients who are ready to provide their own real estate as collateral have a greater chance of obtaining a mortgage from a financial institution without official employment or providing a certificate of income. At the same time, mortgage housing is always provided to the lender as collateral, ensuring the risk of non-repayment of funds by the borrower.

Property that can be provided to credit institutions as collateral when applying for a mortgage:

residential real estate: apartment, private house, country cottage;
commercial real estate;
technical means: passenger car, motorcycle, agricultural machinery;
securities: government bonds, company shares, shares and other securities;
expensive household equipment;
precious stones, jewelry.

The ideal option for collateral is when its value is equal to the size of the loan received from a credit institution.

Basic requirements of banks for borrowers

In order for the bank to agree to issue a mortgage, the borrower must meet the following requirements:

Have Russian citizenship (in the most loyal credit institutions - registration in the country).
Be an adult. In most cases, only people over 23 years old can apply for a mortgage.
Be of working age (up to 65 years). Some banks are ready to cooperate with older clients, but require the involvement of younger co-borrowers.
Have a stable source of income that will cover monthly fees. In this case, the client’s salary must exceed the payment at least 2 times.
Cooperate with your employer for at least six months with a total experience of at least 1 year. If the client is registered as an individual entrepreneur or has a personal business, then the income generated by this activity can be taken into account if it is carried out for more than 12 months.

Mortgage with maternity capital

Families with 2 or more children have the right to receive special financial assistance from the state in the form of a maternity capital certificate. It is issued after the birth of the second and subsequent children. The rights to use such a certificate are granted to both the mother and father of the child.

This type of government assistance is specifically designed to improve the living conditions of large Russian families. Maternity capital can be used to make a down payment for a purchased home or to pay off mortgage debt.

If you have maternity capital, you can get a mortgage without an income certificate. But banks offering such loan programs require borrowers to provide an insurance policy.

In Russia, most young families apply for housing loans using maternity capital to Sberbank. The financial company offers mortgage programs to both large families and unemployed citizens. One of the conditions is the execution of an additional health and life insurance contract for the borrower. This allows the lender to reduce its own risks and provide the client with borrowed funds at a lower annual interest rate.

Tax deduction for life insurance with a mortgage When obtaining a loan for housing, you most often have to take out insurance, for which you have to pay a considerable amount...
Is it possible to refuse mortgage insurance taken out by a bank? When taking out home loans, borrowers are faced with additional costs. These include drawing up an insurance contract,…

How to get a mortgage without an official job

The conditions for taking out a mortgage by unemployed persons depend on their belonging to one or another category of citizens based on their real source of income.

Mortgage for pensioners

Not everyone, but many of them, have access to a mortgage. Pensioners, like the unemployed, are different. Not everyone retires at 63-65 years old. There are categories of citizens who apply for a preferential pension, which they begin to receive significantly before they reach the specified age limit. This:

Representatives of “harmful” professions;
Representatives of professions that require special precision or other skills from the employee, the degree of proficiency of which, for objective reasons, fades along with age-related changes;
Mothers of many children (having three or more children);
Women working in the Far North are mothers of their second or next child.

Such pensioners, with sufficient pension amounts, can apply for a mortgage on a general basis.

If we talk about pensioners who have retired due to old age, then it should be stated with regret: banks generally do not develop programs for financing pensioners as a separate category of citizens. A pensioner will have to take out a mortgage without any benefits.

An unemployed person of retirement age (that is, a non-working pensioner) can choose a mortgage program from a bank that is more loyal to the age of clients. Many financial organizations are ready to lend to citizens who, at the time of loan repayment, are not 65, but 75 or even more years old. Thus, a pensioner can take out a mortgage for ten years, and a pensioner for 12.

Look at the same topic: Is it possible to refinance a military mortgage at Promsvyazbank? Refinancing conditions [y]

The advantage of a pensioner is that, despite the lack of official employment, he has a regular income. No one has the right to deprive him of his pension. The availability of pension payments can be easily proven with a certificate from the Pension Fund.

If the size of the pension allows you to make a down payment and repay the loan debt monthly, the unemployed client will be able to get approval for a mortgage application and apply for a loan.

For students

Students, like retirees, are not all the same. Part-time students have fewer problems with obtaining a mortgage. Usually they officially work, and study at the university during sessions, compensating for the lack of classroom work by studying independently at home.

Full-time students, who mostly strive for independence, but in practice are mostly unemployed, belong to the category of high-risk banking clients.

Only a few banks implement a special mortgage program for students (and even then in a few regions of Russia), where they buy mainly small-sized apartments. It follows that students can generally obtain a mortgage loan only on a general basis.

According to State Standards of Higher Education, a full-time student has the right to official employment. He can work outside of class time.

While junior students are usually unemployed, most senior students are already working, which makes getting a mortgage possible. However, their income level does not always allow them to take out a housing loan. The solution is to have close relatives participate in the loan, acting as co-borrowers or guarantors.

After getting married, a student can refinance by taking part in the “Young Family” program, under the terms of which an economy-class apartment in a new building is purchased with a mortgage on preferential terms.

Mortgage for self-employed citizens with passive income

The main problem of this category of applicants is that it is difficult for them to formally prove their solvency, while in fact they are not unemployed. They have to:

Prove the existence of income, albeit unofficial;
Provide solid guarantees;
Pay a large down payment.

Under these conditions, they can take out a mortgage, although not every banking organization will meet them halfway.

Mortgage for bank clients

Unemployed citizens who are clients of the bank can relatively easily take out a mortgage from it, since they are able to do without the traditional income certificate for applicants. Movements in client accounts are easily checked by bank employees, and they can draw a conclusion about the solvency of a candidate borrower.

Typically, clients who are individual entrepreneurs or have a private practice do not have problems with obtaining a mortgage.

The presence of a deposit for a large amount opened by him in the creditor bank will significantly increase the chances of such a borrower: this will serve as proof of his financial solvency.