HOW TO GET THE NATIONAL HOUSING FUND LOAN

TOP HOUSING LOANS PROVIDERS IN NIGERIA

 

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

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

ELIGIBILITY

  • 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.

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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.

REPAYMENT

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.

REQUIRED DOCUMENTS

  • 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

Email: info@fmbn.gov.ng

National Housing Fund Website

You can visit the website at Fmbn.gov.ng

 

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