Process Of Owning A Home With Mortgage In Nigeria

NHF Mortgage Loan

This facility is granted at 4% interest to accredited Primary Mortgage Banks (PMBs) for on-lending at 6% to NHF contributors over a maximum tenor of 30 years, which is secured by the mortgaged property.

A contributor can access up to ₦15million from the Fund through an accredited and licensed PMB as a mortgage loan to build, buy, improve or renovate their own home after 6 (six) months of continuous contributions. 

These lending conditions make the NHF unequaled as a vehicle for affordable housing delivery in Nigeria.TERMS AND CONDITIONS FOR OBTAINING NATIONAL HOUSING FUND LOANS (NHF)

CONDITIONS FOR NHF LOAN

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 the regular flow of income to guarantee loan repayment.

WHO CAN APPLY

The loan shall be for the purpose of the building, purchasing, or renovating a residential accommodation No loan shall be for refinancing PURPOSE

The 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

HOW TO APPLY

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 mortgaged property shall be insured against hazards.

 The loan shall be secured by the first legal mortgage of the property between the applicant and the mortgage loan originator and assigned to FMBN.

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%

HOW MUCH TO APPLY FOR

The interest rate shall be as prescribed by the National Housing Fund Act which is not more than 6% p.a. INTEREST RATE

The maximum repayment period shall be 30 years. The individual borrower shall make repayment through the mortgage loan originator through which they obtained the loan. TERMS AND CONDITIONS FOR OBTAINING NATIONAL HOUSING FUND LOANS (NHF)

Estate Development Loan

The EDL is a facility granted to private developers, State housing corporations and housing cooperatives to bridge the housing deficit through mass production of houses for ownership by NHF contributors. The facility is granted at 10% interest with a maximum repayment period of 24 months. It is a facility devised to facilitate large scale production of houses for sale to contributors at affordable prices and thereby, expand the availability of affordable housing in Nigeria. As a general policy of the Bank, houses produced through the EDL window should not exceed ₦15million in price and must be sold only to NHF contributors.

EDL REQUIREMENTS »


Estate Development Loan

The EDL is a facility granted to private developers, State housing corporations and housing cooperatives to bridge the housing deficit through mass production of houses for ownership by NHF contributors. The facility is granted at 10% interest with a maximum repayment period of 24 months. It is a facility devised to facilitate large scale production of houses for sale to contributors at affordable prices and thereby, expand the availability of affordable housing in Nigeria. As a general policy of the Bank, houses produced through the EDL window should not exceed ₦15million in price and must be sold only to NHF contributors.

EDL REQUIREMENTS »

Estate Development Loan

The EDL is a facility granted to private developers, State housing corporations and housing cooperatives to bridge the housing deficit through mass production of houses for ownership by NHF contributors. The facility is granted at 10% interest with a maximum repayment period of 24 months. It is a facility devised to facilitate large scale production of houses for sale to contributors at affordable prices and thereby, expand the availability of affordable housing in Nigeria. As a general policy of the Bank, houses produced through the EDL window should not exceed ₦15million in price and must be sold only to NHF contributors.

EDL REQUIREMENTS »

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