A mortgage is a loan that is used to buy a home. The borrower agrees to repay the lender over time, typically in a series of regular payments that are divided into principal and interest. The property then serves as collateral to secure the loan. If the borrower fails to make payments, the lender can foreclose on the property and sell it to recoup their losses.Thank you for reading this post, don't forget to subscribe!
What are NHF Mortgage Loan Requirements?
The National Housing Fund (NHF) Mortgage Loan is a loan scheme that is offered by the Federal Mortgage Bank of Nigeria (FMBN) to Nigerians who are contributors to the NHF. The loan is designed to help Nigerians finance the purchase, construction, or renovation of their own homes.
The following are the requirements for accessing an NHF Mortgage Loan:
- Must be a Nigerian citizen.
- Must be at least 18 years old.
- Must be a contributor to the NHF for at least 6 months.
- Must have a regular income that can support the loan repayments.
- Must be able to provide collateral for the loan.
- Must meet the lending criteria of the Primary Mortgage Bank (PMB) that they are applying to.
The maximum loan amount that a borrower can access is ₦15 million. The interest rate on the loan is 6% per annum, and the repayment period is up to 30 years.
The following are the documents that are required to apply for an NHF Mortgage Loan:
- NHF membership card.
- Proof of income (e.g., payslips, tax returns).
- Collateral documents (e.g., title documents, valuation report).
- Three years tax clearance certificate.
- Completed application form.
The application process for an NHF Mortgage Loan is as follows:
- The borrower applies to a PMB of their choice.
- The PMB assesses the borrower’s eligibility and submits the application to the FMBN.
- The FMBN reviews the application and approves or rejects it.
- If the application is approved, the FMBN disburses the loan to the PMB.
- The PMB disburses the loan to the borrower.
- The borrower repays the loan to the PMB over a period of 30 years.
List of Licensed Mortgage Lenders in Nigeria
As of August 2023, there are 28 licensed mortgage lenders in Nigeria. These lenders are regulated by the Central Bank of Nigeria (CBN) and are authorized to offer mortgage loans to individuals and businesses.
The following is a list of licensed mortgage lenders in Nigeria:
- Abbey Mortgage Bank Plc
- AG Homes Savings and Loans Limited
- Akwa Savings and Loans Limited
- Aso Savings and Loans PLC
- Brent Mortgage Bank Limited
- Centage Savings and Loans Limited
- City Code Savings and Loans Limited
- Coop Savings and Loans Limited
- Delta Building Society Limited
- FBN Mortgages
- FHA Homes Savings and Loans Limited
- First Generation Homes [Savings and Loans] Limited Limited logo]
- Gateway Savings and Loans Limited
- Global Trust Savings and Loans Limited
- Haggai Savings and Loans Limited
- Homebase Savings and Loans Limited
- Imperial Homes Mortgage Bank Plc
- Infinity Trust Mortgage Bank Plc
- Jigawa Savings & Loans
- LivingTrust Mortgage Bank Plc (Formerly Omoluabi Mortgage Bank Plc)
- MayFresh Savings and Loans Limited
- MGSL Mortgage Bank
- Mutual Alliance Savings and Loans Limited
- New Prudential Building Society Limited
- Nigeria Police Mortgage Bank
- Refuge Home Savings and Loans Limited
- Resort Savings and Loans PLC
- Safe Trust Savings and Loans Limited
- STB Building Society Limited
- TrustBond Mortgage Bank PLC
- United Mortgage Limited
The leading mortgage bank in Nigeria is Abbey Mortgage Bank Plc. It is the premier, largest and most profitable, non-aligned Primary Mortgage Bank in Nigeria.
The National Housing Fund in Nigeria
The National Housing Fund (NHF) is a Federal Government scheme that entitles Nigerians in paid employment and above 21 years to a low interest, government funded loan. Members of the scheme contribute 2.5% of their monthly salary to the fund through Federal Mortgage Bank of Nigeria (FMBN).
The NHF was established by the NHF Act No. 3 of 1992 with the following objectives:
- To provide affordable housing for Nigerians.
- To stimulate the housing industry in Nigeria.
- To create jobs in the housing sector.
- To reduce the housing deficit in Nigeria.
The NHF offers a number of benefits to its members, including:
- Low-interest rates for housing loans.
- Reduced tax liability because contributions to the NHF are tax-deductible.
- The ability to access a housing loan of up to N15 million.
- The ability to repay the loan over a maximum of 30 years.
- The ability to use the NHF contribution as collateral for a commercial loan.
To be eligible for an NHF loan, you must:
- Be a Nigerian citizen.
- Be above the age of 21.
- Be in paid employment.
- Have a regular income.
- Have a savings account with a bank in Nigeria.
- Be up to date with your NHF contributions.
To apply for an NHF loan, you must:
- Complete an NHF loan application form.
- Provide proof of identity and address.
- Provide proof of income.
- Provide a savings statement from your bank.
- Provide a valuation report on the property you want to buy or build.
The NHF is a great way to finance your dream home in Nigeria. If you are eligible, I encourage you to apply for an NHF loan today.
Here are some additional details about the NHF:
- The interest rate on NHF loans is fixed at 6% per annum.
- The loan repayment period is up to 30 years.
- The maximum amount that you can borrow is N15 million.
- You can use the NHF contribution as collateral for a commercial loan.
- You can use the NHF loan to buy, build, or renovate a residential property in Nigeria.
The NHF loan program offers a great opportunity for individuals to finance their dream home in Nigeria. With a fixed interest rate of 6% per annum and a repayment period of up to 30 years, it provides a flexible and affordable option for homeownership. Whether you are looking to buy, build, or renovate a residential property, the NHF loan can help you achieve your goals. Additionally, the maximum loan amount of N15 million and the option to use your NHF contribution as collateral for a commercial loan further enhance the benefits of this program.