One of the major problems of the average Nigerian is housing. But most people are unaware of the robust provisions under the law and or how to access them.
The Federal Mortgage Bank of Nigeria (FMBN), was established to meet the housing needs of all citizens of the country. It tries as much as possible to provide affordable housing for the middle and low income earning Nigerians. It manages and administers the contributory savings scheme known as the National Housing Fund (NHF), and encourages and promotes the development of mortgage institutions at the rural, local, State and Federal levels.
Do you know that the (NHF) was established for Nigerians above the age of 21 years in paid employment of low and medium income earnings to access this government funded loan for the purpose of building, purchasing or renovating residential accommodation?
These funds can be accessed if you are either an institutional borrower or individual.
The institutional borrowers apply for the loan directly from FMBN, while individuals like civil servants, doctors and bankers, traders, artisans, commercial drivers, etc.. can only apply through a duly licensed and accredited Primary Mortgage Institution (PMI) that is mortgage banks/houses duly licensed. And an individual borrower is entitled to a maximum amount of Fifteen million Naira (N15,000,000.00) only.
There are certain requirements for accessing the loan if you are in the formal Sector an individual;
- Open a savings account with a registered Primary Mortgage Institution (PMI).
- Contribution to the fund for at least six months
- Have satisfactory evidence of regular flow of income to guarantee the loan.
- Submit photocopies of valid title documents (e.g. C of O).
- Approved survey/site plans.
- Approved building plans.
- Priced bill of Quantities where applicable.
- Valuation report prepared by a firm of registered surveyors and valuers where applicable.
- Letter of consent to mortgage to your chosen PMI.
- Apply on a prescribed mortgage loan application form.
- Offer Letter/Acceptance and Allocation letter (In case of government projects).
- In case of registered self-employed applicant, a copy of Articles and Memorandum of Association and a copy of Certificate of Incorporation as evidence of employment status must be submitted.
While in the informal sector workers can also benefit from the NHF scheme through the informal sector cooperative housing loan scheme (Coop Loan Scheme). The Coop Loan Scheme was designed to accommodate non-salaried informal sector Nigerians to join the NHF scheme through co-operative societies in order to also acquire their own housing. The loan facility under the scheme could be accessed either through the Cooperative Housing Development Loan (CHDL) or the Co-operative National Housing Fund Loan (CNL).
The end goal of the Federal Mortgage Bank is to encourage home ownership among every Nigerian by creating mortgage markets with a sustainable financing system. The NHF scheme ought to be compulsory, but most corporations, companies and organisations do not comply. To own your house today all you need to do is to follow the steps outlined above.
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