The Federal Government (FG), through the Federal Mortgage Bank of Nigeria (FMBN), offers loans to eligible Nigerians through the National Housing Fund (NHF) to help them buy, build, improve or renovate their homes.
The scheme provides eligible NHF contributors with mortgage financing of up to ₦50 million, at an interest rate of 6 per cent per annum, with a repayment period of up to 30 years.
But before applying, prospective borrowers need to understand who qualifies, how much they can receive and the steps involved.
How the FMBN mortgage works
The NHF Mortgage Loan is administered by FMBN through accredited and licensed Primary Mortgage Banks (PMBs).
Rather than applying directly to FMBN for the money, an applicant submits the mortgage application through an accredited mortgage institution.
If approved, the property being financed serves as security for the loan.
The scheme differs from many conventional mortgages because it offers eligible NHF contributors a concessionary interest rate and a repayment period of up to 30 years.
How much money can you get?
FMBN’s current NHF Mortgage Loan information puts the maximum individual loan at ₦50 million.
However, this does not mean every applicant will automatically receive the full amount.
The amount approved depends on factors including the applicant’s 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. 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 features of the scheme is the length of the repayment period.
Eligible borrowers can have up to 30 years to repay the mortgage, although the actual period depends on factors such as 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 available to every Nigerian automatically.
An applicant generally needs to:
- 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 satisfies the relevant legal and planning requirements.
What can you use the money for?
The mortgage 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.
What documents will you need?
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 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
The application process begins with your NHF status.
Step 1: Register and confirm your NHF contributions
You must be an NHF contributor 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.
This 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: Wait for 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 receives approval, the mortgage funds will be disbursed through the accredited mortgage institution for the approved housing purpose.
Where to apply
Nigerians interested in the scheme can find more information about eligibility, registration and the NHF Mortgage Loan through FMBN’s official website.
Apply/check the latest requirements: FMBN NHF Mortgage Loan
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