The Federal Government, through the Federal Mortgage Bank of Nigeria (FMBN), provides mortgage financing to eligible Nigerians under the National Housing Fund (NHF) scheme to help them purchase, build, improve or renovate residential properties.
Under the scheme, eligible NHF contributors can access mortgage loans of up to ₦50 million at an interest rate of not more than 6 per cent per annum, with repayment spread over as much as 30 years.
However, applicants must meet specific eligibility requirements and pass the required affordability, property and documentation checks before receiving the facility.
How the FMBN mortgage works
The NHF Mortgage Loan is administered by FMBN through accredited and licensed Primary Mortgage Banks (PMBs).
Applicants do not typically collect the mortgage directly from FMBN. Instead, they submit their applications through an accredited mortgage institution, which processes the application and facilitates the loan.
Once approved, the property being financed serves as security for the mortgage.
The NHF facility differs from conventional mortgages because it offers eligible contributors a concessionary interest rate and a potentially longer repayment period of up to 30 years.
How much can you borrow?
The current maximum individual NHF Mortgage Loan is ₦50 million.
However, applicants should not assume they will automatically qualify for the maximum amount. The approved loan depends on factors such as income, repayment capacity and the value or cost of the property.
FMBN also states that an individual generally should not receive more than 90 per cent of the cost or value of the mortgaged property.
Some older FMBN documents may still reference a ₦15 million maximum. Prospective borrowers should therefore rely on FMBN's latest published terms and the requirements communicated by an accredited mortgage institution.
What is the interest rate?
The NHF Mortgage Loan attracts an interest rate of not more than 6 per cent per annum for eligible contributors.
FMBN currently states that it provides the facility to accredited PMBs at 4 per cent, with the PMBs lending to NHF contributors at 6 per cent.
Repayment can extend to 30 years
One of the major attractions of the NHF mortgage is its long repayment period.
Qualified borrowers may repay the facility over a period of up to 30 years, although the actual repayment period depends on factors including the applicant's age, income and years in service.
FMBN also assesses whether the applicant can comfortably service the loan, with repayment generally limited to a maximum of one-third of the borrower's income.
Who is eligible?
Not every Nigerian automatically qualifies for the NHF Mortgage Loan. Applicants generally need to meet the following conditions:
- Be a Nigerian citizen aged 18 or above.
- Be registered under the National Housing Fund.
- Have made NHF contributions continuously for at least six months.
- Have a regular source of income.
- Provide evidence of income where self-employed.
- Apply through an FMBN-accredited and licensed mortgage institution.
- Provide a property that meets applicable legal and planning requirements.
What can the mortgage be used for?
The NHF mortgage is strictly intended for housing-related purposes.
An approved borrower may use the facility to:
- Purchase a residential property.
- Build a house.
- Improve an existing property.
- Renovate an existing home.
Documents applicants may need
The exact documentation varies according to the type of mortgage application and the requirements of the lending institution.
Applicants may be required to submit:
- NHF contribution records.
- Proof of income.
- Recent payslips or other evidence of earnings.
- Property title documents.
- Property valuation report.
- Completed mortgage application forms.
- Bill of quantities for construction projects.
- Employment and tax documents.
- Other legal and supporting documents requested by the mortgage institution.
How to apply for the FMBN mortgage
Step 1: Register and confirm your NHF contributions
Applicants must be registered NHF contributors and meet the required contribution period, generally at least six months.
FMBN provides online services for NHF registration and related account activities.
Step 2: Choose an accredited mortgage institution
Applicants should select an FMBN-accredited and licensed Primary Mortgage Bank or mortgage loan originator.
The institution will guide the applicant through the mortgage application process.
Step 3: Submit the application
Complete the required forms and submit the necessary NHF, income and property documents through the mortgage institution.
Step 4: Undergo assessment
The mortgage institution assesses the applicant's ability to repay the facility and conducts the necessary checks on the proposed property.
The property may also undergo valuation and legal verification.
Step 5: Approval and disbursement
If the applicant satisfies the relevant requirements and receives approval, the mortgage funds are disbursed through the accredited mortgage institution for the approved housing purpose.
Where Nigerians can get more information
Prospective applicants should confirm the latest eligibility requirements, loan limits, documentation and application procedures directly through the Federal Mortgage Bank of Nigeria (FMBN) and an accredited mortgage institution before applying, as programme terms and procedures may be updated.
Apply/check the latest requirements: FMBN NHF Mortgage Loan
