HOW TO APPLY FOR FG’S N50M MORTGAGE LOAN TO BUILD, BUY OR RENOVATE A HOUSE

By ‘Sefiu Ajape

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

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

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

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

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 (PMBs).

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

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

Who is eligible?

Applicants generally have to meet the following conditions:

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

FMBN also states that loan 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 page states that a contributor can access up to ₦50 million, subject to affordability and other lending conditions.

The property value also determines the amount that can be borrowed. FMBN’s published conditions state that an individual should not receive more than 90 percent of the cost or value of the property being mortgaged.

Although the older ₦15 million figure still appears in some FMBN documents and online guides, the bank’s current product page states a maximum of ₦50 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 6 per cent per annum.

FMBN currently states that the facility is provided to accredited PMBs at 4 per cent for onward lending to NHF contributors at 6 per cent.

How long do you have to repay?

The maximum repayment period is 30 years, subject to factors including 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 or 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.

3. Obtain the mortgage application form

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

4. Prepare your documents

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

• Completed mortgage loan application form;
• Evidence of NHF contribution;
• Proof of income;
• Recent payslips or other income evidence;
• Property title documents;
• Valuation report for the property;
• 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 documentation may vary depending on whether the applicant is buying, building, or renovating a property.

5. Submit the application

The 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 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.

7. Approval and disbursement

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.

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 as approved housing purposes under the NHF 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.

Important warning for applicants

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

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.

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

Apply here: https://fmbn.gov.ng/products/nhf_mortgage_loan