Nigerians planning to own a home can access housing finance through the National Housing Fund (NHF) administered by the Federal ...
Nigerians planning to own a home can access housing finance through the National Housing Fund (NHF) administered by the Federal Mortgage Bank of Nigeria (FMBN).
The scheme is designed to help eligible contributors finance the purchase, construction, improvement or renovation of a residential property.
According to the latest information published by FMBN, an eligible NHF contributor can access up to ₦50 million, subject to affordability, the value of the property and other lending conditions.
The facility carries an interest rate of 6 per cent per annum for NHF contributors and can be repaid over a period of up to 30 years.
Who can apply?
The NHF mortgage facility is available to Nigerians who meet the required conditions.
Generally, an applicant must:
Be a Nigerian aged 18 or above.
Be registered under the National Housing Fund scheme.
Have contributed to the NHF for at least six continuous months.
Have a reliable source of income to support repayment.
Apply through an FMBN-accredited and licensed mortgage loan originator.
Have a property that meets the required legal, planning and valuation conditions.
FMBN also assesses how much an applicant can comfortably repay. Its published conditions indicate that no more than one-third of the applicant's income should be committed to loan repayment.
What can the money be used for?
The NHF facility is specifically intended for residential housing.
It can be used to:
Purchase a house.
Construct a residential building.
Improve an existing home.
Renovate an existing residential property.
It is therefore not a general-purpose cash loan that can be spent on unrelated personal needs.
How much can you get?
FMBN's current product information places the maximum NHF mortgage amount at ₦50 million.
However, getting the maximum amount is not automatic. The amount approved will depend on factors such as the applicant's income, repayment capacity, the property being financed and other requirements.
FMBN's conditions also state that the property serves as security for the facility and must have sufficient value to support the loan.
What is the interest rate?
The NHF mortgage is offered to contributors at a rate of not more than 6 per cent per year.
FMBN says it provides the facility to accredited Primary Mortgage Banks at 4 per cent, which then lend to eligible NHF contributors at 6 per cent.
How long is the repayment period?
The maximum repayment period is 30 years, although the actual period available to an applicant can depend on factors such as age, income and years of service.
The long repayment period is intended to make monthly mortgage payments more manageable for eligible borrowers.
How to start the application
1. Become an NHF contributor
The first step is to register for the National Housing Fund and ensure that your contributions are being properly recorded.
FMBN provides an online platform through which individuals can register and manage their NHF accounts. The contributor portal requires details including contact information and BVN during registration.
2. Confirm your contribution record
Before applying for a mortgage, applicants should confirm that their NHF contribution history is up to date and that they have met the required six-month contribution period.
FMBN's online system also provides access to contribution history and other account services.
3. Contact an accredited mortgage institution
Applicants do not simply collect the mortgage money directly from an FMBN branch.
FMBN's published conditions state that applicants should apply through a duly licensed and FMBN-accredited mortgage loan originator. The institution helps process the application and required documentation.
4. Prepare the required documents
Depending on whether you want to buy, build or renovate a house, the mortgage institution may request documents such as:
NHF contribution details.
Proof of income.
Recent payslips or other evidence of earnings.
Identification documents.
Property title documents.
Approved building plans where applicable.
Valuation documents.
Bill of quantities for construction projects.
Employment or tax-related documents where required.
The exact documents can vary according to the type of mortgage and the applicant's circumstances.
5. Property verification and assessment
The property will undergo valuation and legal checks before the loan can be approved.
FMBN requires the property used as security to comply with relevant planning regulations and have sufficient value to secure the facility. The mortgage property is also required to be insured against relevant hazards.
6. Affordability assessment
The mortgage institution will assess the applicant's income and determine whether the proposed monthly repayment is affordable.
This means an applicant earning a lower income may qualify for less than the maximum ₦50 million.
7. Approval and disbursement
After the application, property and legal requirements have been successfully completed, the facility can proceed to approval and disbursement through the appropriate mortgage institution.
Can you apply online?
FMBN currently provides an internet banking platform for NHF contributors.
According to the Bank's online guide, registered contributors can log in, select the Loans menu, initiate a loan application, choose the loan type, attach required documents and carry out an affordability check before submitting the request for processing.
However, applicants should still confirm the correct procedure with FMBN or an accredited mortgage institution because documentation and processing requirements can differ depending on the type of housing facility.
Be careful of fraudsters
Anyone seeking an NHF mortgage should be cautious about people claiming they can “secure” the loan in exchange for unofficial payments.
Applicants should verify mortgage institutions and use FMBN's official channels when checking their NHF account, loan requirements or application status.
The official FMBN website provides information about NHF mortgage products and contributor services.
Where to begin
Interested Nigerians can visit the official Federal Mortgage Bank of Nigeria website to check the latest NHF Mortgage Loan requirements and available application channels.
FMBN NHF Mortgage Loan page
For NHF account registration and online services, applicants can also use the FMBN contributor portal.
FMBN NHF Contributor Portal
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