The Federal Government, through the Federal Mortgage Bank of Nigeria (FMBN), offers eligible Nigerians mortgage loans under the National Housing Fund (NHF) to help them buy, build, improve or renovate homes.
The NHF Mortgage Loan provides 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.
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 funds. Instead, they submit their applications through an accredited mortgage institution.
If approved, the property being financed serves as security for the loan.
How much can you get?
FMBN currently lists ₦50 million as the maximum individual NHF Mortgage Loan.
However, applicants are not automatically entitled to the full amount. The approved sum 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.
What is the interest rate?
Eligible contributors can access the mortgage at an interest rate of not more than 6 per cent per annum.
FMBN provides the facility to accredited PMBs at 4 per cent, while the PMBs lend to NHF contributors at 6 per cent.
Repayment period
Borrowers can have up to 30 years to repay the mortgage, although the actual repayment period depends on factors such as age, income and years in service.
Repayment is generally limited to a maximum of one-third of the applicant’s income.
Who can apply?
Applicants generally need 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 meets the required legal and planning conditions.
What can the loan be used for?
The facility can be used to:
Purchase a residential property.
Build a house.
Improve an existing home.
Renovate an existing home.
Documents required
Depending on the application, 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.
Step 2: Find an FMBN-accredited and licensed Primary Mortgage Bank or mortgage loan originator.
Step 3: Complete the application and submit your income, NHF and property documents.
Step 4: The mortgage institution will assess your repayment capacity and conduct valuation and legal checks on the property.
Step 5: If approved, the mortgage funds will be disbursed through the accredited mortgage institution for the approved housing purpose.
