The Federal Government, through the Federal Mortgage Bank of Nigeria (FMBN), offers eligible Nigerians access to housing finance under the National Housing Fund (NHF) scheme, allowing contributors to obtain mortgage loans to buy, build, improve or renovate residential properties.
According to FMBN’s current NHF Mortgage Loan information, eligible contributors can access up to ₦50 million at an interest rate of 6 per cent per annum, with a maximum repayment period of 30 years.
However, applicants must meet specific conditions before they can access the facility, and the maximum amount is not automatically available to every applicant.
The NHF Mortgage Loan is administered by FMBN through accredited and licensed Primary Mortgage Banks (PMBs) and mortgage loan originators.Applicants do not simply collect the money directly from FMBN. Instead, they apply through an FMBN-accredited mortgage institution, which processes the application and assesses the applicant’s eligibility and ability to repay the loan. The property being financed serves as security for the mortgage.
FMBN’s current terms state that the facility is provided to accredited PMBs at 4 percent, with the PMBs lending to NHF contributors at a maximum rate of 6 percent per annum.
FMBN currently lists the maximum individual NHF Mortgage Loan at ₦50 million. However, this does not mean every successful applicant will receive the full amount. The amount approved depends on factors including the applicant’s income, affordability, repayment capacity and the value or cost of the property.
FMBN’s conditions also state that the loan should generally not exceed 90 percent of the cost or value of the property, whichever is lower. The NHF Mortgage Loan is available to eligible contributors at an interest rate of not more than 6 percent per annum.
One of the major features of the scheme is its long repayment period. Eligible borrowers can have up to 30 years to repay the mortgage, although the actual repayment period is subject to factors including the applicant’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.
The mortgage is not automatically available to every Nigerian. An applicant generally needs to be a Nigerian citizen aged 18 or above, be registered under the National Housing Fund, have contributed to the NHF for at least six months, have a regular source of income, provide evidence of income where required, apply through an FMBN-accredited and licensed mortgage institution, and provide a property that satisfies the relevant legal and planning requirements.
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 or renovate an existing home.
The documents required can vary depending on the type of mortgage application. However, applicants may be asked to provide NHF contribution records, proof of income, recent payslips or other income evidence, property title documents, property valuation documents, completed mortgage application forms, employment and tax documents, as well as other legal documents requested by the mortgage institution.
The application process begins with the applicant’s NHF status. Applicants must be NHF contributors and have made the required contributions for at least six months before becoming eligible for the mortgage facility.
FMBN also provides online services for NHF registration and account-related activities. Applicants are then required to choose an FMBN-accredited and licensed Primary Mortgage Bank or mortgage loan originator. The institution will handle the mortgage application and guide the applicant through the process.The applicant will subsequently complete the required forms and submit income, NHF and property documents through the mortgage institution. The mortgage institution will assess the applicant’s ability to repay the loan and examine the property and supporting documents. The property will also undergo valuation and legal checks where required. If the application meets the relevant requirements and receives approval, the mortgage funds will be disbursed through the accredited mortgage institution for the approved housing purpose.Nigerians interested in the scheme can obtain more information about eligibility, registration and the NHF Mortgage Loan through the Federal Mortgage Bank of Nigeria’s official channels.
