The Federal Mortgage Loan Application is now open to all eligible citizens and institutional borrowers through the Federal Mortgage Bank of Nigeria (FMBN) Loan Application Portal for the current edition. This article provides information on how to apply and submit the Federal Mortgage Loan Application Form.
What is Covered in the Federal Mortgage Loan Application?
The Federal Mortgage Loan Application Form covers several categories of loans, including:
- Home Renovation Loan
- Construction Loan
- Estate Development Loan
- Rent-to-Own
- Diaspora NHF Mortgage Loan
If you are in search of a housing loan, the application portal is now open for those who wish to secure a Mortgage Loan from the Federal Mortgage Bank of Nigeria (FMBN) scheme.
Understanding a Mortgage Bank
A Mortgage bank is a financial institution that specializes in mortgage loans. They are involved in both the origination and servicing of mortgage loans. Mortgage banks lend their own money to borrowers and either collect installment payments with a fixed interest rate or sell their loans on the secondary market.
About the Federal Mortgage Bank of Nigeria (FMBN)
The Federal Mortgage Bank of Nigeria (FMBN) is focused on social housing on-lending under the National Housing Fund (NHF), commercial on-lending for housing, refinancing of commercial mortgages created by mortgage loan originators, mortgage purchasing and warehousing, and mortgage-backed securitization. The bank’s current business model targets partnerships with local and international organizations with financial and technical capacity interested in delivering affordable mass housing for the low-income end of the market.
Maximum Loan Amount
Borrowers for the Federal Mortgage Loan may be eligible for a maximum loan amount of N15 million.
Categories of Mortgage Loans
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NHF Mortgage Loan
This facility is granted at 4% interest to accredited Primary Mortgage Banks (PMBs) for on-lending at 6% to NHF contributors over a maximum tenor of 30 years, secured by the mortgaged property. A contributor can access up to ₦15 million from the Fund through an accredited and licensed PMB as a mortgage loan to build, buy, improve, or renovate their own home after 6 (six) months of continuous contributions. These lending conditions make the NHF unequaled as a vehicle for affordable housing delivery in Nigeria.
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Estate Development Loan
The Estate Development Loan (EDL) is a facility granted to private developers, State housing corporations, and housing cooperatives to bridge the housing deficit through mass production of houses for ownership by NHF contributors. The facility is granted at 10% interest with a maximum repayment period of 24 months. It is a facility devised to facilitate large-scale production of houses for sale to contributors at affordable prices, thereby expanding the availability of affordable housing in Nigeria. As a general policy of the Bank, houses produced through the EDL window should not exceed ₦15 million in price and must be sold only to NHF contributors.
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Home Renovation Loan
The Home Renovation Loan is designed to afford Nigerians an opportunity to access mortgage loans for the renovation or improvement of their existing homes. The product is specifically designed for Nigerians who are contributors to the National Housing Fund and desire to renovate or improve existing properties that are personally owned by them or through family ownership.
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Rent-to-Own
The FMBN Rent-to-Own scheme is an innovative affordable housing product that provides an easy and convenient payment plan for homeownership for Nigerian workers. The scheme is specifically designed to make it possible for Nigerian workers to move into FMBN homes as tenants, pay for and own the properties through monthly or yearly rent payments spread over periods of up to 30 years.
Diaspora NHF Mortgage Loan
The Diaspora NHF Mortgage Loan is a mortgage product targeted at Nigerians living outside the shores of the country. The product will afford Nigerians in the Diaspora an opportunity to register with the NHF Scheme, make monthly contributions, and ultimately access mortgage loans to own houses back home.
Requirements For National Housing Fund
- Applicants must be 18 years and above
- Must have a savings account with a registered primary mortgage bank.
- Should make a contribution to the fund for a minimum of six months.
- Show proof of regular flow of income.
- Present photocopies of other substantiating title documents.
- Submit survey and site plans.
- Provide a copy of an approved building plan
- Present bill of Quantities (if you have one)
- Provide valuation report prepared by registered surveyors and valuers where applicable.
- Show tax clearance certificate for three years.
- Present a Letter of consent to your chosen primary mortgage bank.
- Submit the completed mortgage loan application form.
- Show Proof of National Housing Fund contribution.
- Submit Pay slips for the previous three months.
- For a self-employed applicant, a copy of the Articles and Memorandum of Association and a copy of the Certificate of Incorporation should be submitted.
How To Apply For The National Housing Fund
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- Visit the Official Website
- Institutional borrowers can apply directly to the Federal Mortgage Bank of Nigeria for the loan (FMBN)
- Individuals can only apply through a Primary Mortgage Bank (PMB) of their choice that is fully licensed.
- However, you cannot apply for the loan directly through FMBN
- Interested applicants must get loan applications from the same Primary Mortgage Institution.
- To use the national housing fund facility, you must have registered your principal mortgage institution with FMBN.
Checking Federal Mortgage Loan Transaction With USSD Code
The USSD CODE to use in order to carry out those transactions is *219#
How does the USSD code work?
The Federal Mortgage Loan USSD CODE Transaction work out this way, just:
Dial *219# and send
Type 2 and send
Enter 1 and send
Enter the exact month that’s 1 to 12 and send it.