GUIDE ON HOW TO GET A LOAN FROM THE FEDERAL MORTGAGE BANK OF NIGERIA

GUIDE ON HOW TO GET A LOAN FROM THE FEDERAL MORTGAGE BANK OF NIGERIA
GUIDE ON HOW TO GET A LOAN FROM THE FEDERAL MORTGAGE BANK OF NIGERIA
GUIDE ON HOW TO GET A LOAN FROM THE FEDERAL MORTGAGE BANK OF NIGERIA

Federal Mortgage Bank Of Nigeria is the highest-ranked mortgage institution in Nigeria that is tasked with the responsibility of setting up long-term credit facilities for other mortgage institutions in Nigeria.

In collaboration with the commonwealth, it has provided many loans and credit facilities which are of great benefit to Nigerians, both low and medium-income earners.

Also Read- HOW TO GET THE NATIONAL HOUSING FUND LOAN

A mortgage is a loan that is meant to finance anything to do with properties. That is, the loan is not solely for the house owners. All you need is to just make a demand into a Federal Mortgage credit facility with the requirements and enjoy the financial assistance to build your own house and pay back at your own convenient time. Our focus here is to cover all the loans from the Federal Mortgage Bank Of Nigeria and how you can benefit from them.

DUTIES OF FEDERAL MORTGAGE BANK OF NIGERIA

  • They make provision of long-term credit facilities to other mortgage institutions in Nigeria.
  • They contribute majorly to the growth of rising and promising mortgage institutions to enhance the need for housing delivery in all parts of Nigeria.
  • They mobilize funds to the housing sector.
  • They bridge the gap between the capital market and the housing sector.
  • They also aim to ensure that the Federal Mortgage Bank of Nigeria is in good form with no complications.

LOAN COLLATERAL REQUIREMENTS

The loan requirement for Federal Mortgage Bank of Nigeria loans differs, therefore, It depends on the kind of loan you seek. Generally, the collateral requirement is very easy and convenient.

ELIGIBILITY

  • Any Nigerian that is over the age of 18.
  • Applicants are expected to be in paid employment or self-employment.

HOW TO APPLY

  • Decision on the loan of interest.
  • Ensure your documents are complete and duly approved by the institution.
  • Apply for your loan of interest once all the requirements are met.

 

TYPES OF LOANS OFFERED BY THE FEDERAL MORTGAGE BANK OF NIGERIA

 

1. Nigeria Housing Fund Mortgage Loan:

This is designed to finance the housing sector in Nigeria. As it is known that you have to be a contributor to be eligible for it.

ELIGIBILITY

  • Any Nigerian above the age of 18 can apply.
  • He/she must be a contributor to the National Housing Fund for at least six months.
  • Applicants must have evidence for a stable flow of income to guarantee timely loan repayment.

HOW TO APPLY

  • The applicant is to apply through an accredited mortgage loan originator (MLO) of choice not directly to the Federal Mortgage Bank of Nigeria.
  • Application forms are obtainable from the Mortgage Loan Originator.

HOW MUCH CAN YOU GET?

The amount of loan one can get can be determined by the bank and also has a maximum of fifteen million nairas.

INTEREST RATE

The Interest rate prescribed by the National Housing Fund Act should not be more than 6% per annum.

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2. ESTATE DEVELOPMENT LOAN

This is a facility designed to bridge the housing deficit through mass production of houses by Nigeria Housing Fund contributors. The loan is granted at 10% interest with a maximum repayment period of 24 months. It aims to expand the availability of affordable housing in Nigeria.

3. CONSTRUCTION LOAN

This is a loan scheme meant to give Nigerians equal opportunity to access mortgage loans for the construction of their homes.

TOP HOUSING LOANS PROVIDERS IN NIGERIA

PROCEDURES OR ELIGIBILITY

  • Applicants must be a contributor to the Nigeria Housing Fund scheme.
  • Applicants must possess a Certification of Occupancy which must be in the name of the individual.
  • Applicants must possess a building plan duly approved by the appropriate authority.
  • The construction period for the bungalow shouldn’t exceed Six (6) months and Eight (8) months for a duplex.
  • Duly confirmed Personal stake of 10% of the cost of the project must have been confirmed by the Bank’s professionals. Meanwhile, the cost of the plot and fence are not part of it.
  • Disbursement of the loan shall be done to the applicant based on the agreed work plan.
  • Regular monitoring of the project by the designated FMBN staff in the State office in conjunction with the State Coordinator and reporting to the Head Office every week is very much necessary.
  • The Interest rate on the loan is 7% based on annuity to the individual applicant.
  • It is expected that all borrowers are to make repayment within a maximum of 15 years.
  • The Project Finance Group is established to coordinate the disbursement of the loan and monitor the success of the project.
  • The turnaround time of the loan process is 77 days
  • The applicant is to pay a non-refundable fee of One Hundred Thousand Naira only for some necessary documents such as the Application form, Legal Search, Valuation & processing fee.

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4. HOME RENOVATION LOAN

This type of loan scheme is designed to afford Nigerians an equal opportunity to access mortgage loans for the renovation or improvement of their existing homes, personally owned by them or through family ownership.

ELIGIBILITY

  • Any Nigerian above the age of 18 can apply.
  • Applicants must be a contributor to the National Housing Fund for at least six months.
  • Applicants must have evidence of a stable stream of income to guarantee loan repayment.

HOW TO APPLY

  • Applications are approved at the Federal level by the Federal Government Staff Housing Loans Board.
  • Applications are aggregated at the State level by the relevant authority and forwarded to the Federal Mortgage Bank of Nigeria.
  • Employees’ applications in the organized private sector are aggregated by the Permanent Secretary or Chief Executive of the organization.

REQUIREMENTS

  • A clear and valid copy of the application form for the Loan.
  • Appropriate and Satisfactory credit checking has been done.
  • Offer Letter must be properly executed.
  • All Undertaking /Confirmation Letters should be properly executed.
  • Updated Evidence of remittance of Nigeria Housing Fund contribution by the Applicant.
  • Updated Proof of Beneficiaries contributions.
  • Duly checked Guarantor Form.

The Federal Mortgage Bank Of Nigeria Interest rate is fixed at 6% per annum.

IN CONCLUSION

Federal Mortgage Bank Of Nigeria is an Apex Mortgage Bank in Nigeria that has to bring about a large level of productivity in Nigeria through its financial support in the country. It is highly recommended among other Mortgage banks as it gives the best service among all.

FOR ENQUIRIES

Head office address

Federal Mortgage Bank of Nigeria 266 Cadastral AO, Central Business District, PMB 2273 Garki, Abuja. Nigeria

Federal Mortgage Bank Of Nigeria Customer Service

The Customer care phone number is 09-2920689 and 09-2920690.

The customer care email is info@fmbn.gov.ng

Federal Mortgage Bank Of Nigeria Website

The website is fmbn.gov.ng

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