How to become a homeowner through the National Housing Fund (NHF) scheme

John T.Agbo

Looking for an easy, affordable and convenient way to own your home? You must register and contribute to the National Housing Scheme (NHF). The scheme, established in 1992 by the Federal Government as a source of long-term funds to fuel housing development, presents a practical and cost-effective opportunity for Nigerians in the low and middle income segment to become homeowners.

It is managed by the Federal Mortgage Bank of Nigeria (FMBN) https://fmbn.gov.ng/Home/index.html and has so far made affordable housing possible for over 36,617 Nigerians at best market rates.

How to start: Participation in the NHF program is open to all Nigerians aged eighteen and above working in the public, private and informal sectors. This includes government officials, private sector employees, and freelancers such as small business owners, tailors, barbers, digital content creators, comedians, actors, etc. The important thing is to have a verifiable income.

What do you need to do: Registered participants must contribute 2.5% of their monthly income to the plan. After six months of consecutive contribution, participants are qualified to apply and access a suite of affordable home loans offered by the Federal Mortgage Bank of Nigeria (FMBN).

FMBN Housing Product Profiles:
National Housing Fund mortgage loan. The loan provides up to 15 million naira at an interest rate of 6 (six) percent to NHF subscribers to purchase their dream home. Eligible properties include FMBN-funded homes and non-FMBN-funded homes. To ensure the availability of affordable housing stock, FMBN partners with reputable developers to provide one, two and three bedroom bungalows and apartments at prices ranging from N4M to N15M, respectively, nationwide. .

Unlike commercial mortgages, the FMBN NHF mortgage loan offers very advantageous conditions. First, recipients can repay the loans in monthly installments over 30 years. Second, loans of 5 million naira and below attract zero percent equity, and those over 5 million naira to 15 million naira require 10% fixed capital.

Individual Loan for the Construction of a House. The Individual Home Construction Loan is designed for NHF contributors with unencumbered land, legal title and approved building plans to undertake self-construction. It provides up to 15 million naira at an interest rate of 7% to beneficiaries to be repaid over 15 years.

FMBN Rental Housing Program. The Rent-to-Own program allows an NHF contributor to move into FMBN-owned housing as a tenant and pay for ownership of the property in monthly or annual installments for up to 30 years at an interest rate seven percent!

FMBN Home Renovation Loan. The Home Improvement Loan provides up to N1 million Naira to NHF contributors who own their homes to make improvements.

NHF Diaspora Mortgage Loan: The NHF Diaspora Mortgage is designed for Nigerians who live abroad but are registered contributors to the National Housing Fund Scheme to access affordable mortgages of up to N50M to own a home in Nigeria. The conditions include a capital contribution of 30%, an interest rate of 9% and a payback period of ten years.

Interest-free lease-purchase (Ethical RTO) Diagram: FMBN developed the product to eliminate the challenges faced by Nigerians who wish to own their homes through the National Housing Fund Scheme due to the interest-based nature of the Bank’s other housing products. The product uses a rent-to-own model that allows beneficiaries to move into FMBN-funded and non-FMBN-funded housing and easily pay for full ownership, using monthly/quarterly or annual rents. .

The essential : Owning a home is a capital intensive business. However, when you register and contribute to the National Housing Fund Scheme, you can get 30-year repayable mortgages at single-digit interest rates and up to ten per cent equity to own your homes. NHF registration is available at all FMBN branches in national capitals and https://fmbn.gov.ng/Contact/contact-us.html . You can also call an FMBN housing specialist through these numbers on their social media for more information: 09 292 0690; 0817 023 7904; 0908 797 3000.

Good luck as you use this information and take steps to become an owner.

Agbo is a mortgage literacy expert and public advocate for increased access to affordable housing for Nigerians. He is based in Abuja.