The Federal Mortgage Bank of Nigeria (FMBN) was founded in 1956 and became Nigeria's premier mortgage institution in 1994. Since then, it has managed and administered the National Housing Fund (NHF) contributory savings scheme.

The NHF is a social savings initiative that mobilizes long-term funds to provide contributors with concessional loans.

ALSO READ: How to Acquire an Auto Loan in Nigeria

It is one of the primary responsibilities of the FMBN. Federal mortgage bank loans in Nigeria are authorized by the National Housing Fund Act of 1992.

Who Can Apply for a Federal Mortgage Bank Loan?

You must be at least 18 years old and a Nigerian citizen. Six months of contributions to the National Housing Fund are required. Applicants must also provide evidence of a consistent income.

Borrow up to N100,000 at the best affordable rates in Nigeria.

Did you know that you can now compare interest rates from various lenders and find the best bargain using our loan simulator? Before committing to a loan, it is necessary to compare different loan offers in order to make an informed choice. Through our simulator, you can view loan offers from multiple lenders in less than 5 minutes, allowing you to make an informed decision about your financing.

Purpose of a Federal Mortgage Bank Loan

The loan must primarily be used for the construction, acquisition, or renovation of housing. There will be no refinancing credit.

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

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

To gain access to the national housing fund facility, the principal mortgage institution of the applicant's choosing must be covered by an FMBN.

ALSO READ: How to borrow from your pension fund in Nigeria

Primary mortgage institutions provide application forms for National Housing Fund (NHF) loans. In essence, they are primary mortgage institutions under the Nigerian Central Bank that conduct mortgage banking. Additionally, you can discover more about applying for home equity loans.

How Much Can You Apply For?

A borrower may qualify for a maximum loan amount of N15 million, or as advised by the bank. However, no individual should receive credit in excess of 90% of the mortgaged property's value.

Using this platform, you can obtain a comprehensive loan that is tailored to your specific requirements. Essentially, it allows you to compare loans from various lenders in Africa, ensuring that the best option is not overlooked.

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 utmost period of repayment is 30 years. Consequently, individual debtors must repay the loan through the primary mortgage institution from which they obtained the loan.

The Federal mortgage bank employs a model that emphasizes partnerships with organizations that have the financial and technical resources to deliver affordable mass housing to the low-income segment of the market.

ALSO READ: What you must know about rent financing in Nigeria

Here is a CBN-approved list of Nigerian mortgage lenders for further perusing. Check out our articles on other commercial bank loans, such as the Zenith Bank loan, etc.