National Housing Fund
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 ₦50 million 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. This lending conditions make the NHF unequalled as a vehicle for affordable housing delivery in Nigeria.
TERMS AND CONDITIONS FOR OBTAININGNATIONAL HOUSING FUND LOANS (NHF) CONDITIONS FOR NHF LOAN
Who Can Apply
- 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 regular flow of income to guarantee loan repayment.
Purpose
The loan shall be for the purpose of building, purchasing or renovating a residential accommodation.
How To Apply
- 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
Security for the Loan
- 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 mortgage property shall be insured against hazards.
- The loan shall be secured by first legal mortgage of the property between the applicant and the mortgage loan originator and assigned to FMBN
How Much To Apply For
- 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 loan amount is as follows: N6,000,000.00 to 15,000,000.00 – 10% equity N5,000,000.00 or less – 0% equity
Interest Rate
- Interest rate shall be as prescribed by the National Housing Fund Act which is not more than 6% p.a
Loan Repayment
- The maximum repayment period shall be 30 years.
- Individual borrower shall make repayment through the Mortgage Loan Originator through which they obtained the loan.