The Federal Government, through the Federal Mortgage Bank of Nigeria (FMBN), is offering eligible Nigerians access to housing loans of up to ₦50 million under the National Housing Fund (NHF) to help them buy, build, improve or renovate their homes.
The NHF Mortgage Loan provides eligible contributors with financing at an interest rate of not more than 6 per cent per annum, with a repayment period of up to 30 years.
However, prospective borrowers must meet certain conditions and apply through an FMBN-accredited and licensed mortgage institution.
How the FMBN mortgage works
The NHF Mortgage Loan is administered by FMBN through accredited and licensed Primary Mortgage Banks (PMBs).
Applicants do not apply directly to FMBN for the mortgage funds. Instead, they submit their applications through an accredited mortgage institution, which assesses their eligibility, income, repayment capacity and the property being financed.
If approved, the property serves as security for the mortgage.
Unlike many conventional mortgages, the NHF scheme offers eligible contributors a concessionary interest rate and a repayment period of up to 30 years.
How much can you get?
FMBN’s current NHF Mortgage Loan information places the maximum individual loan at ₦50 million.
However, applicants are not automatically entitled to the full amount. The amount approved depends on factors such as income, repayment capacity and the value or cost of the property.
FMBN also states that an individual should generally not receive more than 90 per cent of the cost or value of the mortgaged property.
Some older FMBN documents still contain a ₦15 million maximum loan figure. Prospective applicants should therefore rely on the latest terms published by FMBN and those provided by an accredited mortgage institution.
What does the loan cost?
The NHF Mortgage Loan is available to eligible contributors at an interest rate of not more than 6 per cent per annum.
FMBN currently states that it provides the facility to accredited PMBs at 4 per cent, with the PMBs lending to NHF contributors at 6 per cent.
You can repay over 30 years
One of the major attractions of the scheme is the repayment period.
Eligible borrowers can have up to 30 years to repay the mortgage, although the actual repayment period depends on factors including the borrower’s age, income and years in service.
FMBN also assesses affordability, with repayment generally limited to a maximum of one-third of the applicant’s income.
Who can apply?
The mortgage is not automatically available to every Nigerian.
Generally, an applicant must:
– Be a Nigerian citizen aged 18 or above.
– Be registered under the National Housing Fund.
– Have made continuous NHF contributions for at least six months.
– Have a regular source of income.
– Provide evidence of income if self-employed.
– Apply through an FMBN-accredited and licensed mortgage institution.
– Provide a property that meets the relevant legal and planning requirements.
What can you use the loan for?
The NHF Mortgage Loan is specifically designed for housing purposes.
An approved borrower can use the facility to:
– Purchase a residential property.
– Build a house.
– Improve an existing home.
– Renovate an existing home.
Documents you may need
The documents required may vary depending on the type of application and the mortgage institution involved.
Applicants may be required to provide:
– NHF contribution records.
– Proof of income.
– Recent payslips or other income evidence.
– Property title documents.
– Property valuation report.
– Completed mortgage application form.
– Bill of quantities for construction.
– Employment and tax documents.
– Other legal documents requested by the mortgage institution.
How to apply
Step 1: Register and confirm your NHF contributions
Applicants must be NHF contributors and have made the required contributions for at least six months. FMBN also provides online services for NHF registration and account-related activities.
Step 2: Find an accredited mortgage institution
Choose an FMBN-accredited and licensed Primary Mortgage Bank or mortgage loan originator. The institution will handle the mortgage application and guide you through the process.
Step 3: Submit your application and documents
Complete the required forms and submit your income, NHF and property documents through the mortgage institution.
Step 4: Undergo assessment
The mortgage institution will assess your ability to repay the loan and examine the property and supporting documents. The property will also undergo valuation and legal checks.
Step 5: Approval and disbursement
If the application meets the relevant requirements and is approved, the mortgage funds will be disbursed through the accredited mortgage institution for the approved housing purpose.
Where to apply
Nigerians interested in the scheme should check the Federal Mortgage Bank of Nigeria (FMBN) for the latest information on NHF registration, eligibility requirements, accredited mortgage institutions and the current NHF Mortgage Loan terms.
The key point for prospective applicants is that the ₦50 million maximum is not guaranteed to every borrower. The amount approved will depend on the applicant’s income, repayment capacity, property value and other applicable requirements.
