National Housing Fund (NHF) is a Federal Government introduced scheme that mobilizes long-term funds from Nigerian workers, banks, insurance companies and the Federal Government to advance loans at soft interest rates to its contributors.
The scheme was established by Act 3 of 1992 to enable Nigerians in all sectors of the economy, particularly those within the low and medium income levels who cannot afford commercial housing loans to own houses by contributing 2.5% of their monthly salary to Federal Mortgage Bank of Nigeria, managers of the fund.
Eligibility for (NHF)
To be eligible for the NHF loan, a contributor must be above the age of 18 and must have contributed to the Fund for a period not less than six (6) months. The applicant must have satisfactory evidence of regular flow of income to guarantee loan repayment.
How to Apply For National Housing Fund (NHF)
Except for institutional borrowers who can apply for the loan directly from Federal Mortgage Bank of Nigeria (FMBN), individuals can only apply through a duly licensed and accredited Primary Mortgage Bank (PMB) of their choice and not directly to the FMBN. Loan applications are also to be obtained from the same PMB.
Requirements for accessing an NHF Loan
- Open a savings account with a registered PMB
- Contribution to the fund for at least six months prior to application.
- 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
- Three years tax clearance certificate
- Letter of consent to mortgage to your chosen PMB
- Completed prescribed mortgage loan application form
- Evidence of NHF participation
- Copy of pay slips for the previous three months
- Equity contribution of personal stake of 30 percent, 20 percent or 10 percent depending on the loan amount applied for loans of N15 million, N10 million and N5 million respectively
- 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.
How Much to Apply For?
An individual borrower is entitled to a maximum of N15 million. No individual shall be granted a loan in excess of 90% of the cost or value of the property to be mortgaged.
Security for the Loan
The property (residential accommodation) for which the loan is sought shall serve as security for the loan. The property must have valid title documents (C of O, Deed of Sublease, Deed of Assignment or Letter of Allocation). The property shall conform to the existing planning laws and regulations and building plans approved by the appropriate authorities. The mortgage property must possess sufficient value to recover the loan, and must be insured against hazards.