HOW TO GET THE NATIONAL HOUSING FUND LOAN
The National Housing Fund is a federal mortgage loan scheme introduced to finance its contributors through financial institutions, Insurance companies, Nigerian workers, and the Federal Government. All Nigerians with a stable outflow of income, either paid employment or self-employment are eligible to contribute and benefit from the loan scheme. Also read TOP HOUSING LOANS PROVIDERS IN NIGERIA
The Loan Scheme aimed at helping the medium and low-income earners who are unable to afford housing services to be able to own houses being a contributor to the scheme. Interested applicants are to contribute 2.5% of their basic salary or income to the loan scheme. On the other hand, Commercial and Merchant Banks are mandated to invest 10% of their loans and advances portfolio. Also, Insurance Companies are to invest 20% of their non-life and 40% of their life funds in the housing sector with 50% of these directly in the funds. The Federal Government also is expected to make financial contributions to the loan scheme. 13 Types of Loans you should know
- Any Nigerian Applicant above the age of 18
- The Applicant must be a contributor to the National Housing Fund for at least six months.
- The Applicant must have evidence of a stable and regular flow of income to guarantee loan repayment.
HOW TO APPLY
- Visit a duly registered and approved mortgage loan originator.
- Obtain an Application form from an accredited mortgage loan originator.
- Carefully fill up and complete the application form.
- After a complete filling of the form, kindly submit it to the official in charge.
- Submit the complete documents required as requested by the mortgage loan originator.
- Your documents and requests will be forwarded to the Federal Mortgage Bank of Nigeria and reverted to you.
BENEFITS OF THE NATIONAL HOUSING LOAN SCHEME
- Interest on loans obtained remains fixed at 6% per annum throughout the life of the mortgage.
- There’s a long period of repayment of a minimum of 30 years.
- Contributors can enjoy additional old age security.
- Eligible applicants can borrow up to N15 million.
- On retirement, interest for repayment is 2%
- Every qualified contributor has some packages such as a lifetime registration number, a passbook for the personal recording of contributions, and the account statement.
PROCEDURES FOR REGISTRATION
- The supply of Employer Registration Form by the Federal Mortgage Bank of Nigeria to employers.
- Employers are to fill out the form and submit it to the nearest branch of the Federal Mortgage Bank of Nigeria.
- The Employer will be registered to The Federal Mortgage Bank of Nigeria and an employer’s registration number will be issued to him/her.
- Another form will be issued to the applicant by the Federal Mortgage Bank of Nigeria for completion by employees or directly to self-employed individuals.
- The applicant will complete the second form and submit it to the employer.
- Then the employer or if self-employed will submit the completed second form to the Federal Mortgage Bank of Nigeria.
- The Federal Mortgage Bank of Nigeria will register the Employees on the second form and allocate employees’ participation numbers to each employee / self-employed individual.
- After that, the Federal Mortgage Bank will issue a passbook to each of the registered employees where the monthly deduction of his/her 2.5% basic salary will be posted by the employer.
- After the procedures, an employee is now a registered participant of the National Housing Fund.
- On the other hand, the Employers will commence the deduction of contributions at source. Such contributions are remitted to the Federal Mortgage Bank of Nigeria with a schedule of payment indicating the amount contributed by each employee and the period covered.
- Also, Self–employed contributors will commence monthly remittances of contributions to the Federal Mortgage Bank of Nigeria.
- The Federal Mortgage Bank of Nigeria will accept contributions and issue receipts for payments.
HOW MUCH CAN YOU GET?
A contributor is eligible to access a loan of as much as N15 million.
With a reasonable rate of interest of 6% per annum, the loan is repayable over a maximum period of 30 years. It can be repaid in monthly installments from the income of the beneficiary.
- Completed application form.
- A clear Photocopy of title documents.
- The latest evaluation of the report on the proposed house to buy or the cost to build the house.
- Tax clearance certificate of at least 3 months.
- Evidence of National Housing Fund participation.
- Copy of your payment slips for the previous three months.
- Equity contribution depends on the loan amount applied for.
- Collateral for National Housing loan, which is the property to secure the loan for.
CONDITIONS FOR A REFUND
- A refund is only meant for contributors who have obtained a loan, have attained 60 years of age, and have put in 35 years in service.
- Retired from employment and are unable to continue the contribution to the fund.
- A refund is also made to the next-of-kin of a contributor in the case of a deceased contributor.
Documents required for refund of the case of a deceased
- Application letter requesting for refund of the contribution of the deceased contributor.
- Letter of Offer of Appointment.
- Birth Certificate or the Declaration of age certificate.
- Completed National Housing Fund Contribution withdrawal forms.
- Bank Account details through which refund would be paid.
- Medical report of incapability to continue contributions due to deteriorating health.
- Letter of Administration & Death Certificate for the case of a deceased contributor.
- Evidence of Receipt of contribution for self-employed contributor or an employee.
- Biometric Verification Number.
THOSE ELIGIBLE FOR REFUND WITH THEIR AGES ARE:
- Professors, Judges, and Medical Consultants at the age of 70 years.
- The Academic, Non-Academic Staff, Judicial Staff at the age of 65 years.
- Military Officers at the age of 62 years.
HOW TO REACH THE NATIONAL HOUSING FUND
National Housing Fund contact details
Phone: +234 09-292 0689
OR via the Email address
National Housing Fund Website
You can visit the website at Fmbn.gov.ng