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How To Apply For Federal Mortgage Bank Loan

The federal mortgage bank of Nigeria (FMBN) has provided the following schemes that gives salary earners an opportunity to acquire a properties of their own.

  • NHF Mortgage Loan
  • Home Renovation Loan
  • Estate Development Loan
  • Rent To Own
  • Construction Loan
  • Diaspora NHF Mortgage Loan

NHF Mortgage Loan

This facility is granted at 4% interest to accredited Primary Mortgage Banks (PMBs) for on-lending at 6% to NHF contributors over a maximum tenor of 30 years, which is secured by the mortgaged property. A contributor can access up to ?15million from the Fund through an accredited and licensed PMB as a mortgage loan to build, buy, improve, or renovate own home after 6 (six) months of continuous contributions. This lending conditions make the NHF unequalled as a vehicle for affordable housing delivery in Nigeria.

TERMS AND   CONDITIONS  FOR OBTAINING   RENT-TO-OWN HOUSING SCHEME

  • Any Nigerian above the age of 18
  • Applicant must be a contributor to the National Housing Fund for a minimum period of six (6) months.
  • Applicant must have satisfactory evidence of regular flow of income to guarantee loan repayment.

WHO CAN APPLY

The scheme allows an eligible beneficiary to own a residential property through rentals PURPOSE

PRODUCT FEATURES

  • The maximum purchase price of the property shall not be more than N15,000,000.00 (Fifteen Million Naira),
  •  affordability of which shall be determined by the income limit of the beneficiary and the projected tenancy duration.
  • The rent repayment period shall not exceed thirty (30) years.
  • Interest rate shall be 7% of the price of the property on annuity basis.
  • Monthly or annual payment shall not exceed 1/3 of the applicant's monthly/annual income.
  • The facility shall not be available to any contributor who has enjoyed an NHF loan to buy or build a house.
  • Properties would be insuring against Fire & Special Perils and Credit Life Assurance as covered in interest rate

HOW TO APPLY

  • An interested subscriber will visit any of the FMBN Branch Offices nationwide to check out the available houses and prices.
  • the applicant will then fill the form, attaching all necessary documents as stipulated and return same to the Branch Office

 

 

SECURITY FOR THE LOAN?

  • The subject property for the transaction purchased in the name of FMBN and held in trust by the Bank and the title will be transferred to the beneficiary upon full payment for the property.

ELIGIBILITY CRITERIA

  • Applicant must have registered with National Housing Fund for a period of not less than 6 months with consistence NHF remittances.
  •  Applicants must be first time beneficiaries of the NHF loan.
  •  Applicants must have verifiable means of income.

DOCUMENTATION REQUIREMENTS

  • One passport sized photograph (with white background standard),
  • name and signature behind NHF contribution number.
  • Proof of identity - Valid driver's license,
  •  National ID card, international passport, staff ID card or Tax Payee Card.
  • Pay-slip for the for the last three (3) months preceding the application.
  • Certified personal bank statement for the last six (6) months.
  • Copy of letter of confirmation by Employer.
  •  Letter of undertaking by the employer to deduct the rental payment from the beneficiary's salary and allowances and remit same to FMBN's TSA account.
  • Evidence of additional income to service the rent (if any).
  • Provision of Bank Verification Number (BVN)

HOW TO REPAY

  • The beneficiary shall make a monthly or annual repayment and the maximum period shall be 30 years.

BENEFITS

  • Beneficiaries will be given immediate possession of the property.
  • Is an alternative to mortgage or borrowing.
  • Beneficiaries will not need to immediately perfect fund mortgage documents as collateral for the mortgage.
  • No future increase in the unit cost of the house.
  • There are no supplementary or hidden charges.
  • Help provide access of more Nigerians to housing and assist in reducing the country's housing deficit.
  • Assist government to address the housing needs of its citizens.
  • Insurance shall offset any loss due to fire, windstorm or any unforeseen situation.

Home Renovation Loan

The loan is to afford Nigerians an opportunity to access mortgage loans for the renovation or improvement of their existing homes. The product is specifically designed for Nigerians who are contributors to the National Housing Fund and desire to renovate or improve existing properties which are personally owned by them or through family ownership.

T E R M S A N D   C O N D I T I O N S   F O R  O B T A I N I N G  H O M E  R E N O V A T I O N L O A N S

 

WHO CAN APPLY

  • Any Nigerian above the age of 18
  • Applicant must be a contributor to the National Housing Fund for a minimum period of six months. Applicant must have satisfactory evidence of regular flow of income to guarantee loan repayment.

 

PURPOSE

  • To afford Nigerians an opportunity to access mortgage loans for the renovation or improvement of their existing properties which are personally owned by them or through family ownership.

 

  • HOW TO APPLY
  • At the Federal level, applications are aggregated by the Federal Government Staff Housing Loans Board (FGSHLB).
  • At the State level, applications are aggregated by the relevant authority and forwarded to FMBN. Employees in the organized private sector (including other government agencies and parastatals not covered by the activities of FGSHLB) the applications are aggregated by the Permanent Secretary or Chief Executive of the organization.
     

 

THE FEATURES OF THE HOME RENOVATION LOAN ARE AS FOLLOWS:

 

  • The applicant shall be contributor to the NHF.
  • The maximum loan amount shall be =N=1Million, subject to the income limit of the beneficiary as well as the ultimate cost of renovation
  • Applicant will apply through the Federal Housing Board in the case of the Federal Civil Servants and through the Office of the Head of Service of the State or any other relevant authority recognized by the Bank (in the case of civil servants) and employees of the organized private sector.
  • Approved loan amounts shall be disbursed in lump sum to the Federal Housing Board (in the case of Federal civil servants) and directly to the account of beneficiaries in the case of state civil servants and employees of the organized private sector, after acceptance of offer and the fulfillment of conditions precedent to draw-down.
  • The loans tenor shall be a maximum of 4 years or employee’s remaining years of service, whichever is less.
  • Repayment of the loan shall be through monthly repayment for a tenor not exceeding 4 years, via direct deductions by the FHB and the respective Head of Service/Accountant General’s office of the states or other relevant authority recognized by the Bank for private sector employees.
  • Monthly repayment shall not exceed 33 1/3 percent of applicant’s monthly salary/income Interest rate shall be 8 percent for the duration of the loan for FGSHLB and 6 percent for state governments.
  • The facility shall not be available to any contributor who has enjoyed an NHF loan to build or buy a house.
  • The facility can be taken jointly by a couple, subject to an income assessment of both parties. The loan can only be taken once in 5 years.
  • Applications are to be submitted with certified Bills of Quantities, indicating the amount required for the renovation.

 

CHECKLIST FOR THE LOAN

 

  • Copy of application form for the Loan.
  • Amortization Schedule (with the appropriate) Satisfactory credit checking done. Offer letter properly executed.
  • All Letters of Undertaking /confirmation properly executed.
  • Evidence of up to date remittance of NHF contribution by the Applicant. Proof of Beneficiaries up to date NHF Contribution.
  • Guarantor Form Appropriately checked

 

 

Rent To Own

The FMBN Rent to own scheme is innovation affordable housing product, which provides an easy and convenient payment plan towards homeownership for Nigerian workers. The scheme is specifically designed to make it possible for Nigerian worker to move into FMBN home as tenants, Pay for and own the properties through monthly or yearly rent payment speed over periods of up to 30 years.

TERMS AND CONDITIONS FOR ACCESSING RENT TO OWN HOUSING SCHEME

WHO CAN APPLY:

 

  • Any Nigerian above the age of 18 Applicant must be a contributor to the National Housing Fund for a minimum period of six (6) months.
  • Applicant must have satisfactory evidence of regular flow of income to guarantee loan repayment.
  • The scheme allows an eligible beneficiary to own a residential property through rentals Property through a rental

 

PRODUCT FEATURES

 

  • The maximum purchase price of the property shall not be more than N15,000,000.00 (Fifteen Million Naira), affordability of which shall be determined by the income limit of the beneficiary and the projected tenancy duration
  • The rent repayment period shall not exceed thirty (30) years.
  • Interest rate shall be 7% of the price of the property on annuity basis.
  • Monthly or annual payment shall not exceed 1/3 of the applicant's monthly/annual income.
  • The facility shall not be available to any contributor who has enjoyed an NHF loan to buy or build a house.
  • Properties would be insured against Fire & Special Perils and Credit Life Assurance as covered in interest rate

HOW TO APPLY

An interested subscriber will visit any of the FMBN Branch Offices nationwide to check out the available houses and prices. the applicant will then fill the form, attaching all necessary documents as stipulated and return same to the Branch Office.

 

SECURITY FOR THE LOAN

The subject property for the transaction purchased in the name of FMBN and held in trust by the Bank and the title will be transferred to the beneficiary upon full payment for the property

ELIGIBILITY CRITERIA

  • Applicant must have registered with National Housing Fund for a period of not less than 6 months with consistence NHF remittances.
  • Applicants must be first time beneficiaries of the NHF loan
  • Applicants must have verifiable means of income.

DOCUMENTATION REQUIREMENTS

  • One passport sized photograph (with white background standard), name and signature behind NHF contribution number.
  • Proof of identity - Valid driver's license, National ID card, international passport, staff ID card or Tax Payee Card.
  • Pay-slip for the for the last three (3) months preceding the application.
  • Certified personal bank statement for the last six (6) months.
  • Copy of letter of confirmation by Employer. Letter of undertaking by the employer to deduct the rental payment from the beneficiary's salary and allowances and remit same to FMBN's TSA account.
  • Evidence of additional income to service the rent (if any).
  • Provision of Bank Verification Number (BVN).

 

 

 

HOW TO REPAY

 

  • The beneficiary shall make a monthly or annual repayment and the maximum period shall be 30 years

 

BENEFITS

  • Beneficiaries will be given immediate possession of the property.
  •  Is an alternative to mortgage or borrowing.
  • Beneficiaries will not need to immediately perfect fund mortgage documents as collateral for the mortgage.
  • No future increase in the unit cost of the house.
  • There are no supplementary or hidden charges.
  •  Help provide access of more Nigerians to housing and assist in reducing the country's housing deficit.
  • Assist government to address the housing needs of its citizens.
  • Insurance shall offset any loss due to fire, windstorm or any unforeseen situation.

 

Construction Loan

The loan is to afford Nigerians an opportunity to access mortgage loans for the construction of homes. The product is specifically designed for Nigerians who are contributors to the National Housing Fund and desire to construct properties which are personally owned by them or through family ownership

 

THE PROCEDURES OF THE NHF CONSTRUCTION LOAN ARE AS FOLLOWS:

 

  • The applicant must be a contributor to the NHF scheme.
  • The applicant must possess a land title (C of O) which must be in the name of the individual
  • The applicant must possess approved building plan by the appropriate authority; Drawings and Bill of Quantity certifies by registered professionals.
  • The construction work should be phased and documented in a work plan (30-30-40) Construction period of Six (6) months for bungalow and 8 months for duplex
  • Personal stake of 10% of the cost of the construction must have been utilized on the project before applying for the construction loan and must have been confirmed by the Bank’s professionals. Cost of plot and fence not part of it.
  • Security for the loan shall be the title to the Land of application and insurance policy by the applicant (letter of consent and undertaking for direct debit to be written by the employer)
  • Disbursement of the loan shall be done in tranches to the applicant based on the agreed work plan and BOQ (30-30-40)
  • Regular monitoring of the project by the designated FMBN staff in the State office in conjunction with the State Coordinator and report to the Head Office on a weekly basis.
  • Interest rate on the loan is 7% on annuity basis to the individual applicant Maximum loan tenor is 15 years
  • The Project Finance Group is to coordinate the disbursement of the loan and monitor the project The turnaround time of the loan process is 77 days
  • The applicant is to pay a non-refundable fee of N100,000.00 (One Hundred Thousand Naira) only for Application form, Legal Search, Valuation & processing fee.

 

Diaspora NHF Mortgage Loan

 

The Diaspora NHF Mortgage loan is a mortgage product targeted at Nigerians living outside the shores of the country. The product will afford Nigerians in the Diaspora an opportunity to regulate with the NHF scheme, make monthly contributions and ultimately access mortgage loan town a house back home.

 

THE FEATURES OF THE DIASPORA NHF MORTGAGE LOAN

  • Diaspora monthly contribution shall be $150 for contributors earning below $3000 and $200 for those earning $3,000 and above.
  • Minimum of 12 Months contribution to qualify to apply for the loan
  • The applicants are required to pay 30% equity contribution while the Bank pays 70% The loan will be granted at 9% interest rate per annum
  • A contributor will be qualified for a maximum loan of N50 million The maximum loan tenor shall be Ten (10) years.
  • The Major Stakeholders in effective implementation of the product there shall be accredited Primary Mortgage Banks (PMB), Credit Bureau Agency, Nigerian in Diaspora Commission, and Commercial Banks.
  • The offer letter for the loan shall clearly state that the Bank has the right to dispose off the property without recourse to the borrower if he/she default for a period of 6 months and where the loan is for construction, the title should be in the name of the applicant and a deed of legal mortgage executed between the Bank and the Applicant.
  • The contribution and loan repayment will be denominated in Naira because of the risk in exchange rate fluctuation.
  • Accredited Credit Bureau will be appointed to screen and clear intending mortgagors to guard against the risk of credibility.
  • The product will help in reducing the housing deficit in the country.
  • Liquidity Generation: It is an additional source of robust funds to the Bank, which in turn will help in maintaining overall financial stability.
  • In the event that a contributor does not take the facility by the age of 70, contributions shall be refunded at the Bank’s prevailing interest rate, which is currently at 2%.
  • The launching and implementation of the Diaspora NHF Mortgage loan product is proposed to commence in the United Kingdom (UK) and United States of America (USA) respectively because of high population of Nigerians living in these two countries.
  • More details on the mortgage and product launch will be available soon

Conclusion, federal Mortgage bank loan scheme was designed to help individual (mostly salary earners) acquire property of their own. Kindly visit the fmbn website for further information and opportunities https://www.fmbn.gov.ng/Contact/contact-us.html

Head  Office address: Federal Mortgage Bank of Nigeria, 226 Cadastral AO, Central Business District PMB 2273.Garki Abuja Nigeria .     

 

 

 

 

 

 

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