The Federal Mortgage Bank of Nigeria (FMBN) has continued to offer eligible Nigerians access to mortgage financing through the National Housing Fund (NHF), providing a route to buy, build, improve or renovate residential properties.
The NHF Mortgage Loan is currently available to eligible contributors at an interest rate of not more than six per cent per annum, with a maximum repayment period of up to 30 years.
According to information published by FMBN, eligible contributors can access up to ₦50 million, subject to affordability, property value and other lending conditions.
Who can Apply?
Applicants must generally be Nigerian citizens aged 18 or above and registered contributors to the National Housing Fund. They are also expected to have made continuous NHF contributions for at least six months and demonstrate a stable source of income.
Self-employed applicants may be required to provide evidence of regular income while FMBN also assesses an applicant’s repayment capacity, with mortgage repayment generally subject to an affordability limit of up to one-third of the applicant’s income.
How to Apply
The first step is to confirm your NHF contribution status. Applicants must be registered with the NHF and meet the applicable contribution requirements. After that, applicants should select a licensed and FMBN-accredited Primary Mortgage Bank (PMB) or mortgage loan originator.
The NHF mortgage is processed through accredited mortgage institutions rather than applicants simply collecting the loan directly from FMBN.The selected mortgage institution provides the relevant application form and advises the applicant on the documentation required.
Depending on the purpose of the loan, applicants may be asked to provide evidence of NHF contributions, proof of income, recent payslips, employment or tax documents, property title documents and valuation reports. Applicants seeking financing for construction may also need to provide a bill of quantities and other relevant building documents.
Property Assessment
Once the application is submitted, the mortgage institution assesses the applicant’s income, repayment capacity, documentation and proposed property.
The property is also subjected to relevant valuation and legal checks to establish that it provides adequate security and meets applicable planning and legal requirements.
FMBN’s published conditions indicate that an individual should generally not receive more than 90% of the cost or value of the property being mortgaged. This means applicants may need to provide part of the purchase or project cost themselves, depending on the value of the property and the approved loan amount.
The NHF Mortgage Loan can be used to purchase a residential property, construct a home, improve an existing property or carry out renovations.
Approval and disbursement
Following assessment and satisfactory completion of the required legal and mortgage documentation, the application proceeds through the applicable approval process.
Once the loan is approved and all conditions are met, the funds are disbursed through the mortgage loan originator for the approved housing purpose. Repayments are subsequently made through the mortgage institution that originated the loan.
The maximum loan amount, however, is not automatically available to every applicant. The final amount depends on factors including income, repayment capacity, property value and the lender’s assessment.
Warning Against Fraud
Prospective applicants have also been advised to be cautious of individuals who claim they can secure an FMBN mortgage in exchange for unofficial payments. Applicants should deal only with FMBN and verified accredited mortgage institutions and independently confirm any request for payment before proceeding.
FMBN provides information about its NHF Mortgage Loan, contributor services and application channels through its official website. Prospective applicants can access the bank’s current NHF Mortgage Loan information through its official website before beginning the application process.
