How to register/access National Housing Fund ,check monthly contribution and requirements for FMBN mortgage loan

Are you a Nigerian, and you are planning to access the National Housing Fund (NHF) which is known as federal mortgage loan, you don’t know how to apply and the requirements. This post will guide you through the step-by -steps process.

The NHF scheme is for Nigerians in all sectors of the economy, particularly those within the low and medium-income levels who cannot afford commercial housing loans such as civil servants, traders, artisans, commercial drivers, bloggers etc. Any intending beneficiary must be a registered contributor and up to date with his/her contributions.

The property can be located anywhere in Nigeria. The applicant must however provide acceptable title documents to the land when applying for mortgage loan from nation housing fund

The National Housing Fund was established by Act 3 of 1992. Section 2 of the Act outlines the aims and objectives of the fund. Sections 20, 21 and 22 define the offenses and penalties for non-compliance. Act 3 is being amended to bring it in line with new realities aimed at strengthening the National Housing Fund.

This is a Federal Government scheme designed for Nigerians above the age of 21years in paid employment. The National Housing Fund allows the government to Mobilize funds for the provision of affordable residential houses for Nigerians.

The scheme allows Commercial and Merchant Banks to invest 10% of their loans and advances portfolio. Insurance Companies are mandated to invest 20% of non-life and 40% life funds in the housing sector with 50% of these directly in the funds.

Also read: How to apply for First Bank Home Loan and-mortgages & requirements

Members of the scheme are to contribute 2.5% =N=3000 and above per annum of their monthly salary to the fund through Federal Mortgage Bank of Nigeria.The maximum amount obtainable under the NHF is N15 million. The borrowed capital is repayable over a maximum of 30 years at the rate of 6% interest.

The pool of funds created by the contributors nationwide becomes available to any contributor to borrow from, after contributing for a minimum of six months.

 

Benefits of National Housing Fund loan

1. Housing loan of up to 90% of the cost of the house.
2. Interest on loans remains fixed throughout the life of the mortgage at 6% p.a.
3. Long period of repayment of up to 30 years.
4. Contributions can serve as additional old age security.
5. Up to N15 million can be borrowed.
6. Refunds with 2% interest on retirement.
7. Loan repayment is about the same as a typical monthly rent.
8. Every contributor has: a lifetime registration number, a passbook for personal recording of contributions and the account statement.

Who is eligible for the Federal Mortgage Loan?

To enable you qualify for federal housing funds which are also known as federal Mortgage Loan, you must meet the following requirements as stated below.

1. Any Nigerian above the age of 21
2. You must have made at least six (6) months of contributions to the Fund
3. For individual borrowers there must be satisfactory evidence of regular flow of income to guarantee loan repayment.
4. Registration via NHF 1 (employer) and NHF 2 (employee) forms.
5. Yearly statement of cumulative contributions plus accrued interest
6.Apply through any accredited Primary Mortgage Bank(PMB)
7.Applicant must provide satisfactory evidence of regular income.

What is the Documents required to process National Housing Fund loan

To apply for federal National Housing loan you must provide the following documents:

1. Completed application form.
2. Photocopy of title documents
3. Current valuation report on the proposed house to buy or bills of quantities (BOQ) for the house to build.

4. Three years tax clearance certificate.
5. Evidence of NHF participation
6. Copy of pay-slips for the previous three months.
7. Equity contribution or personal stake depending on the loan amount applied for.
8. R-of-O can be used as a title document on the condition that the owner will submit evidence of processing the Certificate of Occupancy (C-of-O) and the undertaking that the C-of-O will be deposited in the Bank when it is obtained.

You may also like to read: GTBank Mortgage Loan: How to apply and document required for housing mortgage application

What is the Mode of repayment for NHF

NHF housing loans are repaid in monthly installments from the income of the beneficiary. This mode of repayment has the advantage of being both affordable and convenient.

 

What is the Security and collateral for NHF loan

The only collateral is the property to secure the loan for. No other collateral is needed for the loan and a contributor can only obtain NHF loan facility once in a lifetime.

 

What is the maximum loan amount for NHF loan

A contributor is eligible to access a maximum loan amount of =N=15 million repayable over a maximum period of 30 years at an affordable interest rate of 6%.

 

Can self employees apply for NHF?

Self employed NHF contributors can access construction loans to develop their personal residential properties.

 

How to restrive NHF Number

If you have previously registered or updated your Mobile Number with FMBN, you can retrieve your NHF Number while on the go. To commence, follow the following steps:

Dial *219# USSD code and Send
– Type 3 and Send
– Your NHF number will be displayed.

 

How to check National Housing Fund monthly contribution

You can check National Housing Fund monthly contribution if you are a contributor by using Unstructured Supplementary Service Data, ussd code simply dial *219# and send

Then Type 2 and send
Enter 1 and send
Enter the exact month that’s 1 to 12 and send it

Once done you will get your contribution based on your search month.

 

Documents required for refund of contribution

1. Application letter requesting for refund of contribution.
2 . Letter of offer of appointment.
3. Birth certificate or Declaration of age certificate.
4. Completed NHF Contribution withdrawal forms.
5. Bank Account details through which refund would be paid.
6. Medical report of incapability to continue contributions due to failing health
7. Letter of administration & Death Certificate (in case of a deceased contributor)
8. Evidence of contribution. (Receipt for self-employed contributor)
9. Biometric Verification Number (BVN)

Condition of Refund for NHF

To get a refund as contributor, applicants from the underlisted professions,the retirement ages are as stated below:

1. Retired from employment and becomes incapable of continuing the contribution to the Fund.

2. Professors, Judges and Medical Consultants – 70 years of age
3. Academic, Non-Academic Staff, Judicial Staff – 65 years of age
4. Military Officers – 62 years of age
5. Refund is made to the next-of-kin of a contributor in case of a deceased contributor.
6. Refund is made to a contributor who has attained 60 years of age or has put in 35 years in service.

7. Refund is also made to a contributor that has obtained a loan, liquidated the loan and has attained the age of 60 years or have put in 35 years in service.

 

How to register for National Housing Fund

To get started, you need to register for the National Housing Fund as a Nigerian to enable you to be a contributor and obtain a housing mortgage loan.However, intending applicants must have a stream of income whether self-employed or in paid employment to enable them to contribute monthly.

1. Approach any register mortgage instigation in Nigeria and pick up Form (NHF1)
2. complete form NHF1 and return to the nearest branch of the Federal Mortgage bank of Nigeria.
3. You will be issued an employer’s registration number.
4.You will issue form NHF2 to employers for completion by employees or directly to self employed or individual.

5. Employees will complete the form NHF2 and return to the employer.The employer or self-employed individuals will return completed form NHF2 to Federal Mortgage Bank of Nigeria.

6. Federal Mortgage Bank of Nigeria will register Employees on Form NHF2 and allocate employees participation number to each employee/self-employed individual.

7.A passbook will be issued  to each of the registered employees where the monthly deduction of his/her 2.5% basic salary will be posted by the employer

8. Employers will commence deduction of contributions at source. Such deductions/contributions are remitted to the Federal Mortgage Bank of Nigeria with a schedule of payment indicating the amount contributed by each employee and the period covered.

9. Self–employed contributors will also commence monthly remittances of contributions to FMBN. The Federal Mortgage Bank of Nigeria will accept contributions and issue receipts for payments.

 

How to apply for National Housing Fund (NHF)

A contributor interested in obtaining NHF loan applies through a registered and duly accredited mortgage loan originator (e.g. Primary Mortgage Banks), who packages and forwards the application to federal mortgage bank of Nigeria FMBN.

Culled:  from federal mortgage bank{national housing fund}

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