DID YOU KNOW THAT YOU CAN BECOME A LANDLORD FAST BY ACCESSING A MORGAGE FACILITY FROM FEDERAL GOVERNMENT

   How long have you been desiring to become a Landlord? Here is the national structure that can make that easy for you.The National Housing Fund (NHF) ownership structure of 50% of the equity for Federal Government,30% for Central Bank of Nigeria and 20% for National Social Insurance Trust Fund, was established in 1992 through the National Housing Fund Act and was mandated to collect 2.5% of the salary of all workers either public or private and warehouse them in the Federal Mortgage Bank of Nigeria for provision of cheap and affordable housing for all conbributors.

Eligibility & Condition

• Contributors must have a registered account under the NHF with the Federal Mortgage Bank of Nigeria (FMBN)

• Each individual contribution to the scheme must run
• Application forms for the NHF loans are obtainable for at least six(6) months from the PMI
• Applicant must have a satisfactory evidence of flow of income to guarantee loan repayment
• Loan amount are determine by the applicant income.

Documents required to process a loan include:

I.Completed application form

ii.Copy of title documents

iii.Current valuation report on the proposed property or Bill of Quantities(BOQ) for the house to build

iv.Three(3) years tax clearance

v.Evidence of NHF participation

vi.Copy of pay slips for the immediate past three (3)months

vii. Equity contribution of 30%, 20% or 10% depending on the loan amount

HOW TO APPLY

• Contributors are to apply through a duly licensed and accredited Primary Mortgage Institution (PMI) of his/her choice.Applications cannot be made directly to the FMBN
• Application forms for the NHF loans are obtained from PMI

LOAN AMOUNT AND AVAILMENT

N15,000,000.00 30% equity contribution

N10,000,000.00 20% equity contribution

N5,000,000.00 10% equity contribution

SECURITY FOR THE LOAN

• The property for which the loan is sought will serve as security and must have a valid title document e.g. Certificate of Occupancy

• The property shall conform with existing planning laws and regulations(approved building plan)

• The property shall possess sufficient value to recover the loan

• The mortgage property shall be insured against hazards

• The loan shall be secured by first legal mortgage of the property between the applicant and the PMI and assigned to FMBN

MODE OF REPAYMENT OF LOAN

• Maximum repayment period for the mortgage loan is 30 years.

• Loans are repaid on monthly installations from the monthly incomeof the beneficiary.

• Repayment shall be made through the PMI where the loan was secured.

F.A.Q's

Question

What happens to my previous contributions if I change jobs?

Answer

Contributions are not lost as NHF accounts are transferable from old to new employer. Contributors will be required to notify their new employers of their NHF account numbers upon resumptlon.

Question

Apart from building a house,what else can I use the NHF loan for?

Answer

NHF loans can be used to make outright purchase of a residential house and to renovate or expand an existing one(the loan is strictly for residential houses).

Question

How can a low income earner get collateral for the NHF loan?

Answer

The only collateral required is the property in question;no other collateral is needed to secure the NHF loan.

Question

How many times can I get the NHF loan?

Answer

You can obtain the NHF loan facility once in a life time.

Question

Can I obtain NHF loan to purchase a piece of land to build a house?

Answer

No,a prospective applicant who wishes to obtain a loan to build a house is expected to have his/her land as well as acceptable title to the land prior to the application for the NHF loan.