In order to improve economic, social, and civic development in Nigeria, Federal Mortgage Bank of Nigeria (FMBN) has introduced a National Housing fund with the Aim of Mobilization of funds for the provision of affordable residential houses for Nigerians.
A common question we hear from Nigerians is if they can benefit from a housing loan.What are the required documents to apply for a loan? In this article you will learn how to get National Housing fund and what is the maximum loan amount and repayment time,
The National Housing Fund Interest on loans remains fixed throughout the life of the mortgage at 6% p.a. and Long period of repayment of up to 30 years.Every contributor has: a lifetime registration number, a passbook for personal recording of contributions and the account statement.
National Housing Fund (NHF). was established by an Act 3 of 1992 and Section 2 of the Act outlines the aims and objectives of the fund. while Sections 20, 21 and 22 define the offenses and penalties for non-compliance.
Before you can apply for a loan you must be a registered member.Accordly to NHF Act No.3 of 1992 All Nigerians in employment, whether self-employed or in paid employment, are required to contribute 2.5% of their basic salary/income to the fund.
You are to Register via NHF 1 (employer) and NHF 2 (employee) forms which be
Deducted monthly as contributions remitted to FMBN promptly (At least 6 months contributions should be made) Once done the Federal Mortgage Bank will issue a passbook to each of the registered employees where the monthly deduction of his/her 2.5% basic salary will be posted by the employer
Who can benefit for National Housing fund
Any intending beneficiary must be a registered contributor and up to date with his/her contributions and it must be a Nigerians in all sectors of the economy, particularly those within the low and medium-income levels who cannot afford commercial housing loans and you must contribute 2.5% of the monthly basic salary
A prospective applicant who wishes to obtain a loan to build a house is expected to have his/her land as well as an acceptable title to the land prior to the application for an NHF loan
What Documents required to process a loan
The following document is required to apply for National Housing Fund
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.
Purpose of a Federal Mortgage Bank Loan
The loan shall be mainly for building, purchasing, or renovating residential accommodation. No credit shall be for refinancing.
How Much Can You Apply For?
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%. A contributor can only obtain an NHF loan facility once in a lifetime.
What is NHF mode of payment
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.
The interest rate shall be as prescribed by the National Housing Fund Act, which is not more than 6% per annum.
How To Apply for a Federal Mortgage Bank Loan
A contributor interested in obtaining an NHF loan applies through a registered and duly accredited mortgage loan originator (e.g. Primary Mortgage Banks), who packages and forwards the application to FMBN.
How do I check my National Housing Fund monthly contribution?
The following are the ways you can check your National Housing Fund monthly donation:
1. USSD Code
Dial *219# and send
Type 2 and send
Enter 1 and send
Enter the exact month that’s 1 to 12 and send it.
2. Mobile App
Download the FMBN Mobile app android version from the Google play store. Or get its IOS equivalent from the App store. Thereafter, create an account with your information details and enjoy all transactions from your comfort zone.
How to retrieve National House Fund NHF number?
To retrieve your National House Fund just:
Dial *219# and send
Type 3 and send
Click the “Cancel” button to end the service.