The Federal Government, through the Federal Mortgage Bank of Nigeria (FMBN), is offering eligible Nigerians an opportunity to finance their dream of owning a home through the National Housing Fund (NHF) mortgage scheme. The facility allows qualified contributors to access up to ₦50 million to buy, build, improve or renovate a residential property, with an interest rate of not more than 6 per cent per year.
For many Nigerians struggling with rising property prices and the high cost of construction, the scheme could provide a more affordable route to homeownership. However, getting the maximum ₦50 million is not automatic. The amount approved depends on factors such as the applicant’s income, ability to repay and the value or cost of the property. FMBN also states that an individual will generally not receive more than 90 per cent of the cost or value of the mortgaged property.
The NHF mortgage is administered by FMBN through accredited and licensed Primary Mortgage Banks and other approved mortgage institutions. Applicants do not simply collect the money directly from FMBN; instead, they apply through an accredited mortgage institution, which assesses their financial position and the property involved. Eligible borrowers can repay the facility over a period of up to 30 years, although the actual repayment period depends on factors such as age, income and years of service. Repayments are also generally limited to one-third of the applicant’s income.
To qualify, an applicant must generally be a Nigerian citizen aged 18 or above, registered under the National Housing Fund and have made continuous NHF contributions for at least six months. Applicants must also have a regular source of income or provide appropriate evidence of income if self-employed. The property being financed must meet the necessary legal, planning and documentation requirements. The loan can be used to purchase a residential property, construct a house, improve an existing home or carry out renovations.
For Nigerians interested in applying, the first step is to confirm their NHF registration and contribution status. They can then approach an FMBN-accredited mortgage institution, complete the required application and submit documents such as proof of income, NHF contribution records, property documents, valuation reports and other requested paperwork. The application will then undergo financial, legal and property assessments before approval and disbursement. Prospective applicants should rely on FMBN’s latest published terms and an accredited mortgage institution for current requirements, particularly because some older FMBN materials still reference a lower maximum loan amount.
source: vanguard
