If you are interested in applying for the National Housing Fund (NHF) through a duly licensed and certified mortgage loan originator (MLO) of his/her choice (FMBN), make sure you read this article to the very end. In this post, you will find out all the information that you need to apply for the National Housing Fund through allowed banks in Nigeria. Read How to Apply for Access Bank Advance for School Fees Study Loan
Eligibility Criteria
- Any Nigerian above the age of 18 who wishes to apply must have contributed to the National Housing Fund for at least six months.
- To ensure loan repayment, the applicant must provide sufficient evidence of a consistent stream of income.
- Purpose of loan
- The loan must be used for the construction, purchase, or renovation of a residential property.
- No loan shall be to refinance.
Where Do I Apply?
- Not directly to the Federal Mortgage Bank of Nigeria, but through a duly licensed and certified mortgage loan originator (MLO) of his/her choice (FMBN).
- To use the NHF facility, the applicant’s preferred MLO must be accredited by FMBN. NHF loan application forms are available from the MLO SECURITY FOR THE LOAN.
- The loan will be secured by the property for which the loan is being sought.
- The property must adhere to all current planning laws and regulations (approved building plan).
- The property must be valuable enough to repay the loan.
- A mortgaged property must be covered by insurance.
- The loan will be secured by a first legal mortgage on the property, which will be issued to FMBN by the applicant and the mortgage loan originator.
Requirements for Getting a Loan from the NHF
- Open a savings account with a PMB that is registered.
- Prior to applying, you must have contributed to the fund for at least six months.
- Have sufficient proof of a consistent stream of income to back up the loan.
- Photocopies of legitimate title documents should be sent (e.g. C of O).
- Survey/site plans that have been approved
- Building plans that have been approved
- Where applicable, a costed Bill of Quantities
- Where applicable, a valuation report provided by a firm of registered surveyors and valuers
- Certificate of tax clearance for three years
- Mortgage consent letter to your preferred PMB
- Application for a mortgage loan that has been completed according to the guidelines
- Copy of pay stubs for the past three months as proof of NHF involvement
- Personal equity contributions of 30%, 20%, or 10%, depending on the loan amount, are required for loans of N15 million, N10 million, and N5 million, respectively.
- Letters of Offer/Acceptance and Allocation (in case of government projects)
- A copy of the Articles and Memorandum of Association, as well as a copy of the Certificate of Incorporation, must be submitted in the case of a self-employed applicant.
How Much Do I Need to Apply For?
A borrower is eligible for a maximum loan of fifteen million naira (N15, 000,000.00) or the amount determined by the Bank. Checkout Nwcredit Loan App: How to Get Newcredit Loan.
A loan of more than 90% of the cost or value of the property to be mortgaged should not be offered to anyone.
The following is the equity contribution based on the new loan amounts:
- N15,000,000.00 – 30%
- N10,000,000.00 – 20%
- N5,000,000.00 – 10%
Rate of Interest
The interest rate shall be set by the National Housing Fund Act and shall not exceed 6% per annum. People have used these loans to satisfy emergency requirements, pay fees, write professional tests, buy things, and invest in their businesses, among other things. Nigeria National Housing Fund.
I can assist you in processing your application if you have a need or a desire that requires cash. After successfully submitting all relevant documents, your approved amount (ranging from NGN100,000 to NGN5,000,000) will be credited in your account within 24 hours.
Source: Nyscînfo