How to apply for FG loan to build, buy a house

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The Federal Mortgage Bank of Nigeria offers mortgage financing to eligible Nigerians through the National Housing Fund, providing a route to buy, build, improve or renovate a home.

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

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According to FMBN on its website, the current information shows that eligible contributors can access up to ₦50 million, subject to affordability and the value of the property.

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

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What is the FMBN mortgage loan?

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

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

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

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Who is eligible?

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Applicants generally have to meet the following conditions:

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* Be a Nigerian citizen aged 18 or above.
n* Be a contributor to the National Housing Fund.
n* Have made continuous NHF contributions for at least six months.
n* Have a stable source of income or, for self-employed applicants, provide evidence of regular income.
n* Apply through an FMBN-accredited and licensed mortgage loan originator/Primary Mortgage Bank.
n* Have a property that meets the relevant legal and planning requirements.n

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

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How much can you borrow?

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

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The property also matters. 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.

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The older ₦15 million figure still appears in some FMBN documents and online guides, but FMBN’s current product page now states ₦50 million. Applicants should therefore rely on the latest terms provided by FMBN and their accredited mortgage institution.

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What is the interest rate?

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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.

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How long do you have to repay?

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

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

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How to apply

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1. Confirm your NHF contribution

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You must first be registered as an NHF contributor and have made the required continuous contributions.

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

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2. Choose an accredited mortgage institution

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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/mortgage loan originator, which processes the application and submits it to FMBN.

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3. Obtain the mortgage application form

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The mortgage institution will provide the relevant application form and guide you on the documentation required for your particular application.

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4. Prepare your documents

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Depending on the nature of the application, applicants may be required to provide documents such as:

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* Completed mortgage loan application form;
n* Evidence of NHF contribution;
n* Proof of income;
n* Recent payslips or other income evidence;
n* Property title documents;
n* Valuation report for the property;
n* Bill of quantities where the loan is for construction;
n* Relevant tax and employment documents; and
n* Other legal documents required by the mortgage institution.n

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The exact documentation can vary depending on whether the applicant is buying, building or renovating a property.

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5. Submit the application

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

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

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6. Property and legal checks

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

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7. Approval and disbursement

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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.

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What can the loan be used for?

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The NHF Mortgage Loan can be used to:

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* Buy a residential property;
n* Build a home;
n* Improve an existing home; or
n* Renovate an existing home.n

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FMBN specifically describes its NHF facility as covering these housing purposes.

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How can Nigerians check their NHF contributions?

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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.

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Important warning for applicants

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

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FMBN’s official website carries warnings about fraudsters posing as NHF facilitation officers. Applicants should deal only with FMBN and its accredited mortgage institutions and verify any request for payment before proceeding.

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FMBN’s official website provides information on its mortgage products, NHF services and application channels.

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Apply Here: https://fmbn.gov.ng/products/nhf_mortgage_loann

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