FAQs

The Application Process

The mortgage applicants must open an Account with the bank/lending institution
A minimum equity contribution (as specified by the lending institution), of the loan amount required must be deposited

In addition, the following documents must be submitted:
-A duly completed mortgage application form.
-Offer Letter signed by the seller of the property
-Title deed to the property-Insurance policies (as specified by the bank/lending institution)

For a new building, documentation includes:
-Certified copy of an approved building plan

-Bill of Quantities from a registered Quantity Surveyor

Requirements for  Individuals: Proof of Income
For self-employed:

Verifiable income (Note: a steady income flow is critical)

For employees:

-Copy of employment letter and confirmation letter

-Letter of undertaking from Employer

-Recent pay slips (original copy)

-Recent bank statement of salary account, stamped and signed by Bank

Requirements for Business Entities
-Organizational profile
-Audited financial statements and cash-flow projection.
-Recent bank statements, stamped and signed by Bank

The National Housing Fund (NHF)

The National Housing Fund (NHF) was established by the Federal Government to enable Nigerians access to a low interest, government funded loan.  The loan is only given for the building, purchase or renovation of residential property on land which has the appropriate title documents.  This loan cannot be accessed for refinancing and, can only be accessed once by a member of the NHF scheme.

Who is eligible for the NHF?

All Nigerians (both resident and non-resident) above the age of 21years can access the loan. By contributing 2.5% of their monthly salary to the fund, through Federal Mortgage Bank of Nigeria, for a period of not less than six months, a person will become eligible for the loan.

What is the loan amount available under NHF?

Under the NHF, a maximum loan amount of N15 million is obtainable at an interest rate of 6% repayable over a maximum of 30 years.

How can I apply for a loan under the NHF?

Application is normally made through a duly licensed and accredited Primary Mortgage Institution (PMI). However, institutional borrowers can apply for the loan directly from Federal Mortgage Bank of Nigeria (FMBN).

The National Mortgage Refinance Company (NMRC)

The NMRC is a Public Private Partnership between the Federal Government of Nigeria and the private sector (commercial and mortgage banks), established to provide access to affordable housing finance through primary and secondary mortgage markets that are funded by long-term funds raised from the capital market. The home loans currently available under the scheme have a repayment period of up to 20 years and an economically viable interest rate.

Who is eligible for the NMRC?

The loan is available to Nigerians above the age of 21 years. To qualify, the applicants must demonstrate evidence of regular income. For self-employed, the drawings from the business will represent income; also evidence of a bank account must be presented. For employees, requirements will include evidence of employment income and tax compliance, amongst others.

Is the loan accessible for all types of property purchase?

The loan is only available for the purchase of owner-occupier homes with a maximum value of N20m.

What is the loan amount available under NMRC?

The maximum amount available to each individual or joint borrower(s) is 80% of the value of the property to be purchased, with the borrower(s) depositing 20% as equity contribution. As such, with the approved home value capped at N20 million, the maximum loan amount obtainable is N16m.

How can I apply for a loan under the NMRC?

Registration can be done online at www.housingfinance.gov.ng. Applications can be made as an individual or jointly with a spouse (husband & wife).

After registration, if the eligibility criteria, as specified have been met, the applicant can select a preferred mortgage lender from the NMRC member list to process the loan application. If the pre-qualification assessment conducted by the mortgage lender is successful, then a mortgage offer will be made to the applicant.