The Federal Government (FG), through the Federal Mortgage Bank of Nigeria (FMBN), offers loans to eligible Nigerians through the National Housing Fund (NHF) to help them buy, build, improve or renovate their homes
The scheme provides eligible NHF contributors with mortgage financing of up to ₦50 million, at an interest rate of 6 per cent per annum, with a repayment period of up to 30 years
But before applying, prospective borrowers need to understand who qualifies, how much they can receive and the steps involved
The NHF Mortgage Loan is administered by FMBN through accredited and licensed Primary Mortgage Banks (PMBs)
Rather than applying directly to FMBN for the money, an applicant submits the mortgage application through an accredited mortgage institution
If approved, the property being financed serves as security for the loan
The scheme differs from many conventional mortgages because it offers eligible NHF contributors a concessionary interest rate and a repayment period of up to 30 years
FMBN’s current NHF Mortgage Loan information puts the maximum individual loan at ₦50 million
However, this does not mean every applicant will automatically receive the full amount
The amount approved depends on factors including the applicant’s income, repayment capacity and the value or cost of the property
FMBN also states that an individual should generally not receive more than 90 per cent of the cost or value of the mortgaged property
Some older FMBN documents still contain a ₦15 million maximum loan figure Applicants should therefore rely on the latest terms published by FMBN and those provided by an accredited mortgage institution.
The NHF Mortgage Loan is available to eligible contributors at an interest rate of not more than 6 per cent per annum
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
One of the major features of the scheme is the length of the repayment period
Eligible borrowers can have up to 30 years to repay the mortgage, although the actual period depends on factors such as the borrower’s age, income and years in service
FMBN also assesses affordability, with repayment generally limited to a maximum of one-third of the applicant’s income
The mortgage is not available to every Nigerian automatically
An applicant generally needs to:
The mortgage is specifically designed for housing purposes
An approved borrower can use the facility to:
The documents required can vary depending on the type of mortgage application
However, applicants may be asked to provide:
The application process begins with your NHF status
Step 1: Register and confirm your NHF contributions
You must be an NHF contributor and have made the required contributions for at least six months
FMBN also provides online services for NHF registration and account-related activities
Step 2: Find an accredited mortgage institution
Choose an FMBN-accredited and licensed Primary Mortgage Bank or mortgage loan originator
This institution will handle the mortgage application and guide you through the process
Step 3: Submit your application and documents
Complete the required forms and submit your income, NHF and property documents through the mortgage institution
Step 4: Wait for assessment
The mortgage institution will assess your ability to repay the loan and examine the property and supporting documents
The property will also undergo valuation and legal checks
Step 5: Approval and disbursement
If the application meets the relevant requirements and receives approval, the mortgage funds will be disbursed through the accredited mortgage institution for the approved housing purpose
Nigerians interested in the scheme can find more information about eligibility, registration and the NHF Mortgage Loan through FMBN’s official website
Apply/check the latest requirements: