How to apply for Fed. Govt loan to build, buy a house

The Federal Mortgage Bank of Nigeria (FMBN) offers mortgage financing to eligible Nigerians through the National Housing Fund (NHF), providing an opportunity to buy, build, improve or renovate a home.

The NHF Mortgage Loan is available to eligible contributors at an interest rate of 6 per cent per annum, with a repayment period of up to 30 years.

According to FMBN, eligible contributors can currently access up to ₦50 million, subject to affordability, property value and other lending conditions.

Here are the key things applicants need to know about the scheme and how to apply.

What is the FMBN mortgage loan?

The NHF Mortgage Loan is a housing finance facility administered by FMBN through accredited and licensed Primary Mortgage Banks (PMBs).

The facility can be used to buy, build, improve or renovate an owner-occupied home, while the property being financed serves as security for the loan.

Unlike conventional commercial mortgages, the NHF facility is designed to provide contributors with a longer repayment period and a concessionary interest rate.

Who is eligible?

Applicants generally need to meet the following requirements:

Be a Nigerian citizen aged 18 or above.

Be a contributor to the National Housing Fund.

Have made continuous NHF contributions for at least six months.

Have a stable source of income or, if self-employed, provide evidence of regular income.

Apply through an FMBN-accredited and licensed mortgage loan originator or Primary Mortgage Bank.

Have a property that meets relevant legal and planning requirements.

FMBN also states that loan repayment affordability is assessed using a maximum of one-third of the applicant’s income.

How much can you borrow?

FMBN’s current NHF Mortgage Loan information states that a contributor can access up to ₦50 million, subject to affordability and other lending conditions.

The value of the property is also important. FMBN’s published conditions state that an individual should not receive more than 90 per cent of the cost or value of the property being mortgaged.

The older ₦15 million figure still appears in some FMBN documents and online guides. However, the Bank’s current product information states ₦50 million.

Applicants should therefore confirm the latest applicable terms with FMBN or an accredited mortgage institution before applying.

What is the interest rate?

The interest rate for NHF contributors is not more than 6 per cent per annum.

FMBN currently describes the facility as being provided to accredited PMBs at 4 per cent for onward lending to NHF contributors at 6 per cent.

How long do you have to repay?

The maximum repayment period is 30 years, subject to factors such as the applicant’s age, income and years in service.

Repayments are made through the mortgage loan originator through which the applicant obtained the facility.

How to apply for the FMBN mortgage loan

1. Confirm your NHF contribution

Applicants must first be registered as NHF contributors and have made the required continuous contributions.

FMBN provides an online personal/individual NHF registration portal for new contributors.

2. Choose an accredited mortgage institution

Applicants do not simply walk into FMBN and collect the mortgage loan directly.

The application is made through a licensed and FMBN-accredited Primary Mortgage Bank or mortgage loan originator, which processes the application and submits it to FMBN where applicable.

3. Obtain the mortgage application form

The accredited mortgage institution will provide the relevant application form and explain the documents required for the particular application.

4. Prepare your documents

Depending on the type of application, applicants may be required to provide:

Completed mortgage loan application form;

Evidence of NHF contribution;

Proof of income;

Recent payslips or other income evidence;

Property title documents;

Property valuation report;

Bill of quantities where the loan is for construction;

Relevant tax and employment documents; and

Other legal documents required by the mortgage institution.

The exact requirements may differ depending on whether the applicant is buying, building or renovating a property.

5. Submit the application

The application and supporting documents are submitted to the accredited mortgage institution.

The institution assesses the applicant’s income, repayment capacity, property and documentation before forwarding the application to FMBN where applicable.

6. Property and legal checks

The property undergoes valuation and legal checks.

The mortgaged property must provide adequate security and comply with relevant planning and legal requirements.

7. Approval and disbursement

Once the relevant conditions are satisfied and the loan is approved, the funds are disbursed through the mortgage loan originator for the approved housing purpose.

What can the loan be used for?

The NHF Mortgage Loan can be used to:

Buy a residential property;

Build a home;

Improve an existing home; or

Renovate an existing home.

How can Nigerians check their NHF contributions?

FMBN provides digital channels through which contributors can access information about their NHF accounts.

The Bank’s website also provides online registration and account services for contributors.

Beware of fraudsters

Applicants should be cautious of individuals who claim they can “secure” an FMBN loan in exchange for money.

FMBN has warned about fraudsters posing as NHF facilitation officers. Applicants should deal only with FMBN and its accredited mortgage institutions and verify any payment request before proceeding.

How to apply

[Apply for the FMBN NHF Mortgage Loan](https://fmbn.gov.ng/products/nhf_mortgage_loan?utm_source=chatgpt.com)

Important: Before paying any agent or third party, verify that they are authorised by FMBN or an accredited mortgage institution.