Nigerians seeking to buy, build, improve or renovate a home can access mortgage financing through the Federal Mortgage Bank of Nigeria under the National Housing Fund scheme.

The NHF Mortgage Loan is available to eligible contributors at an interest rate of not more than six per cent per annum, with a maximum repayment period of 30 years.

According to the FMBN’s current information, eligible contributors can access up to N50 million, subject to affordability, property value and other lending conditions.

Here are the key requirements and steps applicants should know before applying.

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.

The facility can be used to purchase, construct, improve or renovate an owner-occupied residential property. The property being financed serves as security for the loan.

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

Who is eligible?

Applicants generally need to meet the following conditions:

Be a Nigerian citizen aged 18 or above.

Be registered as 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 satisfies relevant legal and planning requirements.

FMBN also states that 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 contributors can access up to N50 million, subject to affordability and other lending requirements.

The value of the property also determines the amount that can be financed. 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.

An older N15 million figure still appears in some FMBN documents and online guides. However, the bank’s current product page states a maximum of N50 million.

Applicants should therefore rely on the latest terms provided by FMBN and their accredited mortgage institution.

What is the interest rate?

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

FMBN currently states that the facility is provided to accredited Primary Mortgage Banks at four per cent for onward lending to NHF contributors at six per cent.

How long do you have to repay?

The maximum repayment period is 30 years, although the actual repayment period may depend on factors such as the applicant’s age, income and years in service.

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

How to apply

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 to 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 mortgage institution will provide the appropriate application form and guide the applicant on the documents required for the specific 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 contributions;

Proof of income;

Recent payslips or other evidence of income;

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 vary depending on whether the applicant intends to buy, build or renovate a property.

5. Submit the application

The completed 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.

FMBN’s conditions require the mortgaged property to provide adequate security and comply with relevant planning and legal requirements.

7. Approval and disbursement

Once all relevant conditions have been 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.

FMBN specifically lists these purposes under its NHF mortgage facility.

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.

For the latest information on NHF mortgage products, contribution services and application channels, applicants should use FMBN’s official website.

Apply here: FMBN NHF Mortgage Loan⁠�