INFO: How To Get A Federal Mortgage Bank Loan

INFO: How To Get A Federal Mortgage Bank Loan

The Federal Mortgage Bank of Nigeria (FMBN) launched in 1956 before assuming the status of the apex mortgage institution for Nigeria, in 1994. Since then it has managed and administered the contributory savings scheme known as the National Housing Fund (NHF)

The NHF is a social savings project to mobilise long-term funds to advance concessionary loans to contributors.

It operates as one of the core mandates of the FMBN. The Federal mortgage bank loan in Nigeria is under the National Housing Fund Act(1992).

Who Can Apply for a Federal Mortgage Bank Loan?

You must be a Nigerian and above the age of 18 years. They must have been a contributor to the National Housing Fund for six months. Applicants must also have evidence of a regular flow of income.

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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.

Requirements of The FMBN Loans

  • Savings account with a registered primary mortgage bank
  • Contribution to the fund for a minimum of six months.
  • Evidence of a regular flow of income.
  • Photocopies of other substantiating title documents.
  • Survey and site plans
  • A copy of an approved building plan
  • Bill of Quantities (If you have one)
  • Valuation report prepared by registered surveyors and valuers where applicable
  • Tax clearance certificate for three years
  • Letter of consent to your chosen primary mortgage bank
  • Completed mortgage loan application form
  • Evidence of National Housing Fund contribution
  • Payslips for the previous three months
  • If you are a self-employed applicant, a copy of Articles and Memorandum of Association and a copy of Certificate of Incorporation should be submitted.

How To Apply for a Federal Mortgage Bank Loan

Basically, the applicant is to apply through a licensed and accredited primary mortgage institution and not to the Federal Mortgage Bank of Nigeria (FMBN) directly.

The primary mortgage institution of the applicant’s choice must be under by FMBN to access the national housing fund facility.

Forms for application of the NHF loans are obtainable from the primary mortgage institutions. In essence, they are primary mortgage institutions under the Central Bank of Nigeria to carry out mortgage banking. You can also read more on how to apply for home equity loans.

How Much Can You Apply For?

A borrower can be eligible for a maximum loan of N15m, or sometimes as advised by the bank. However, no individual should get credit above 90% of the value of the mortgaged property.

You can obtain a comprehensive loan, tailored to your specific needs by using this platform. Basically, it allows you to compare loans from different lenders across Africa, ensuring the best option doesn’t slip through.

Interest Rate

The interest rate shall be as prescribed by the National Housing Fund Act, which is not more than 6% per annum.

Loan Tenure

The maximum repayment period shall be for 30 years. Therefore, individual borrowers shall make repayment through the primary mortgage institution through which they got the loan.

The Federal mortgage bank operates on a model that targets partnerships with organizations with financial and technical capacity, interested in delivering affordable mass housing for the low-income end of the market.

For further reading, here’s a CBN approved list of licensed mortgage lenders in Nigeria. Also, check out our posts on other commercial bank loans like the Zenith Bank loan, and so on.

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