How To Obtain A Federal Mortgage Bank Loan

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Federal Mortgage Bank Loan

In 1956, The Federal Mortgage Bank of Nigeria (FMBN) was launched. In 1994, it assumed its position as the status of the apex mortgage institution for Nigeria. Ever since then, it has been able to manage the contributory savings scheme known as the National Housing Fund (NHF) in Nigeria.

The National Housing Fund is a social investments project to organize long-term resources to advance loans to contributors. Its operation is one of the core mandates of the Federal Mortgage Bank of Nigeria. The FMBN in Nigeria is registered under the National Housing Fund Act (1992).

Aim of the Federal Mortgage Bank Loan

This loan scheme was developed only for the building, purchasing, or any renovations of residential housing of any applicant. This credit plan isn’t meant for the re-financing of housing loans.

Who are eligible to Apply for the Federal Mortgage Bank Loan?

Anyone who wishes to apply for the Federal Mortgage bank Loan must fulfill these requirements:

  • Applicants must be a Nigerian and resident in Nigeria
  • Applicants must be up to the age of 18 years.
  • You have been a regular contributor to the National Housing Fund for approximately 6 months.
  • Applicants must have substantial evidence of a steady flow of salary.

Federal Mortgage Bank Loan

Required Documents  for Application of Federal Mortgage Bank Loan

  • Copies of survey and site plans of the house.
  • A photocopy of the approved building plan.
  • Copies of your monthly income receipts.
  • A valid savings account with any registered mortgage bank.
  • Evidence of contribution to the loan scheme for a minimal duration of 6 months.
  • Photocopies of title deeds or any substantiating documents.
  • Detailed valuation report properly prepared by registered surveyors.
  • A legitimate tax clearance certificate for at least 3 years or more.
  • An approved letter of consent to your desired mortgage bank.
  • Finalized mortgage loan application forms duly signed.
  • A self-employed applicant would have to present the following: photocopies of Memorandum and Articles of
  • Association with Certificate of Incorporation.
  • Earnings receipt for the previous months for at least 3 months

Application Procedure

Principally, all applicants are expected to apply through any registered and licensed mortgage institution closer to them. They are not expected to apply to the Federal Mortgage Bank of Nigeria directly.

Any primary mortgage institution which the applicant’s decide to apply with must be registered under the FMBN to be able to access all the benefits of the national housing fund facility.

Accredited primary mortgage institutions do have the forms for applications for NHF Loans in their respective branches. Essentially, all these primary mortgage institutions registered under the Central Bank of Nigeria help in facility mortgage banking.

Loan Offer

An applicant is eligible to borrow a loan for a maximum amount offer of N15,000,000. Nevertheless, an individual is not expected to receive a credit loan above 90% of the value of the pledged property.

You can receive an all-inclusive loan, personalized to your housing needs by using this housing scheme. Essentially, it gives you the opportunity to compare loans from different institutional lenders across Africa certifying you don’t miss the best choice.

Interest Rate Applied

The National Housing Fund Act proposes an interest rate of 6% annually.

Loan Duration

The loan repayment duration only lasts for as long as 30 years. Consequently, an individual who borrowed the Federal Mortgage loan shall make refund by paying in bits to the mortgage institution through which they acquired the loan.

The Federal mortgage Bank works in a version which chooses mutual agreement with establishments that has financial and mechanical capacity which would be interested in bringing affordable mass housing scheme for the low-income earners.