Before assuming the status of the apex mortgage institution of Nigeria in 1994, the Federal Mortgage Bank of Nigeria (FMBN) launched in 1956 and, since then, it has overseen and administered the contributory savings scheme known as the National Housing Fund (NHF). Also check out: How to Get Mortgage Loan in Nigeria (Step by Step).
This fund is a social savings project to mobilise long-term funds to advance concessionary loans to contributors.
The NHF is a social savings project to mobilise long-term funds to advance concessionary loans to contributors. The federal mortgage bank loan came under the National Housing Fund Act (1992), and it operates as one of the core mandates of the FMBN.
Qualification for Federal Mortgage Bank Loan
To access this loan, you have to fulfil the requirements of being a Nigerian and attaining the age of 18 years. Again, you must have been a contributor to the National Housing Fund for the period of six months, and proof of regular inflow of income.
Aims of Federal Mortgage Bank Loan
The loan is primarily targeted at building, renovation, or purchase of residential accommodation. There shall be no credit for refinancing.
Requirements of the FMBN Loans
- Savings account with a registered primary mortgage bank.
- Contribution to the fund for a minimum of six months.
- Proof of regular flow of income.
- Photocopies of other substantiating title documents.
- Survey and site plans.
- A copy of an approved building plan
- Bill of Quantities (if you have one)
- Valuation report prepared by registered surveyors and valuers where applicable.
- Tax clearance certificate for three years.
- Letter of consent to your chosen primary mortgage bank.
- Completed mortgage loan application form.
- Proof of National Housing Fund contribution.
- Pay slips for the previous three months
- For a self-employed applicant, a copy of Articles and Memorandum of Association and a copy of Certificate of Incorporation should be submitted.
How to Apply for a Federal Mortgage Bank Loan
Application for federal mortgage bank loan is to be submitted to an accredited and licensed primary mortgage institution.
Note that the Federal Mortgage Bank of Nigerian does not received applications for loan direct from applicants.
Also, the primary mortgage institution chosen by the applicant must be under FMBN, to access the National Housing Fund facility.