How to Apply for NHF Mortgage Loan in Nigeria.
National Housing Fund NHF Mortgage Loan is a facility that is permitted at 4 percent to a Primary Mortgage Banks PMB by Federal Mortgage Bank of Nigeria FMBN and loan out to NHF contributors at 6 percent per annum over a maximum tenor of 30 years, which is secured by the mortgaged property.
According to FMBN, 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 own home after 6 (six) months of continuous contributions.
Requirements for NHF Mortgage Loan in Nigeria
- Applicant must be a Nigerian and 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 regular flow of income to guarantee loan repayment.
- The loan shall be for the purpose of building, purchasing, or renovating a residential accommodation, no loan shall be granted for refinancing or remortgaged.
How to Apply for NHF Mortgage Loan in Nigeria
- Applicant must apply via a duly licensed and accredited mortgage loan originator (MLO) that is, PMBs of his/her choice and not directly to FMBN.
- The MLO or PMB 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.
List of Accredited Primary Mortgage Banks in Nigeria
A borrower is entitled to a maximum loan of 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 (Minimum amount to be provided by the borrower before loan can be granted ) based on the new loan amounts is as follows:
- N15,000,000.00 – 30%
- N10,000,000.00 – 20%
- N5,000,000.00 – 10%
Interest rate shall be as prescribed by the National Housing Fund Act which is not more than 6% per annum
Loan Repayments in Years
- The maximum repayment period shall be 30 years.
- Individual borrower shall make repayment through the mortgage loan originator through which they obtained the loan.
For more information on NHF Mortgage Loan, click here