Mortgage: How to access NHF Loan From Federal Mortgage Bank of Nigeria

TERMS AND CONDITIONS FOR OBTAINING NATIONAL HOUSING FUNDS LOANS (NHF)

 

WHO CAN APPLY
  • Any Nigerian above the age of 18
  • Applicant must be a contributor to the National Housing Fund for a minimum period of six months.
  • Applicant must have satisfactory evidence of regular flow of income to guarantee loan repayment.
PURPOSE
  • The loan shall be for the purpose of building, purchasing, or renovating a residential accommodation
  • No loan shall be for refinancing
HOW TO APPLY
  • Applicant is to apply through a duly licensed and accredited mortgage loan originator (MLO) of his/her choice and not directly to Federal Mortgage Bank of Nigeria (FMBN).
  • The MLO of the applicant’s choice must be accredited by FMBN to access the NHF facility. Application forms for NHF loans are obtainable from the MLO
SECURITY FOR THE LOAN
  • The property for which the loan is sought shall serve as security for the loan.
  • The property shall conform with the existing planning laws and regulations (approved building plan).
  • The property shall possess sufficient value to recover the loan.
  • A mortgage property shall be insured against hazards
  • The loan shall be secured by first legal mortgage of the property between the applicant and the mortgage loan originator and assigned to FMBN.
REQUIREMENTS FOR ACCESSING AN NHF LOAN
  • Open a savings account with a registered PMB
  • Contribution to the fund for at least six months prior to application.
  • Have satisfactory evidence of regular flow of income to guarantee the loan.
  • Submit photocopies of valid title documents (e.g. C of O).
  • Approved survey/site plans
  • Approved building plans
  • Priced Bill of Quantities where applicable
  •  Valuation report prepared by a firm of registered surveyors and valuers where applicable
  • Three years tax clearance certificate
  • Letter of consent to mortgage to your chosen PMB
  • Completed prescribed mortgage loan application form
  • Evidence of NHF participation
  • Copy of pay slips for the previous three months
  • Equity contribution of personal stake of 30 percent, 20 percent or 10 percent depending on the loan amount applied for loans of N15 million, N10 million and N5 million respectively
  • Offer letter/Acceptance and Allocation letter (in case of government projects)
  • In case of registered self-employed applicant, a copy of Articles and Memorandum of Association and a copy of Certificate of Incorporation as evidence of employment status must be submitted.
HOW MUCH TO APPLY FOR
  • A borrower is entitled to a maximum loan of fifteen million naira (N15, 000,000.00) or as determined by the Bank.
  • No individual should be given a loan in excess of 90% of the cost or value of the property to be mortgaged.
  • Equity contribution based on the new loan amounts is as follows:
    • N15,000,000.00 – 30%
    • N10,000,000.00 – 20%
    • N5,000,000.00 – 10%
INTEREST RATE
  • Interest rate shall be as prescribed by the National Housing Fund Act which is not more than 6% p.a.

 

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The maximum repayment period shall be 30 years. Individual borrower shall make repayment through the mortgage loan originator through which they obtained the loan.

SOURCE: FMBN

5 Comments

  1. Majemite on May 30, 2019 at 11:59 am

    Hi

  2. Opawole Hanafi Olaoye on June 20, 2019 at 6:34 pm

    I am a civil servant that needs house loan,sir/ma, how can I obtain it.

  3. Opawole Hanafi Olaoye on June 20, 2019 at 6:39 pm

    I am a civil servant that I need house loan,ma /sir how can I do to obtain it.

  4. Adekunle Adepegba on August 21, 2019 at 6:08 am

    Am civil servant, I don’t have c/ of o but l have a land.

  5. Abdul Qadir Khadijah Temitope on September 3, 2019 at 2:21 pm

    Am a civil servant how can I get the housing loan

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