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Dennis Isong: How to Access Federal Mortgage in Nigeria



Housing being one of the most crucial components of human life leaves everyone with no choice but to have a roof over their heads, and a place to call home. In essence, the Federal Mortgage Bank of Nigeria (FMBN) was founded to ensure that Nigerians had reliable and inexpensive access to homeownership. The Federal Mortgage Bank of Nigeria makes it easy to become a property owner, but many Nigerians fail to take advantage of this opportunity.

A mortgage is a loan that can be used to purchase or refinance a home. Mortgages allow you to purchase a home without having to pay in full but as time proceeds. It’s mostly granted to individuals who are interested in owning a house but don’t have the total cost of the house available at the moment. 

The Federal Mortgage Bank of Nigeria (FMBN) is an institution that was established in 1956 with the aim of lessening the burden of Nigerians in some certain projects. It became Nigeria’s apex mortgage institution in 1994. Since then, it has maintained and overseen the National Housing Fund (NHF), a contributing savings system.

The NHF is a social savings project that aims to raise long-term money in order to provide contributors with low-interest loans.It is one of the FMBN’s main responsibilities. The National Housing Fund Act governs federal mortgage bank loans in Nigeria (1992).

The Federal Mortgage Bank of Nigeria has its main purpose: to improve the availability of inexpensive and easy-to-acquire homeownership in Nigeria. The organisation accomplishes this primarily through long-term liquidity and creation of new products and services.

The Decree

According to the Federal Government of Nigeria, there are various decrees guiding the organisation to ensure it functions according to its main goal. They include;

  • Collect and administer the National Housing Fund according to the NHF Act’s stipulations.
  • Provide Nigerian mortgage institutions with long-term credit facilities.
  • Encourage the establishment and growth of viable main and secondary mortgage institutions to meet the demand for housing in Nigeria’s various regions.
  • Engage in transactions that, in the board’s opinion, are required to guarantee the appropriate performance of the FMBN Act’s functions.
  • Investing both domestic and international funds in the housing market.
  • Connect the stock market to the housing market.
  • Create and run a thriving secondary mortgage market.

Who is Eligible to Apply for a Federal Home Loan?

You must be a Nigerian who is at least 18 years of age.They must have made at least 6 months monthly contributions remitted to FMBN, provide satisfactory evidence of regular income, have a passbook to be updated by employer and is transferable from one employment to the other, and so on.

How Do I Apply for a Federal Home Loan?

The following is the procedure for applying for a federal mortgage loan in Nigeria:

  • Institutional borrowers can apply for the loan directly through the Federal Mortgage Bank of Nigeria (FMBN).
  • Individuals can only apply through a fully regulated Primary Mortgage Bank (PMB) of their choice, however, you will not be able to apply for the loan through FMBN.
  • The loan applications must be obtained from the same primary mortgage institution.
  • You must have registered your principal mortgage institution with FMBN in order to access the national housing fund service.

What Documents Do I Need to Apply for a Loan from the Federal Mortgage Bank of Nigeria?

In general, the following documents are required:

  • The application form has been completed.
  • Title papers photocopied
  • Current value report for the house you want to buy or bills of quantities for the house you want to build.
  • Certificate of tax clearance for three years.
  • Evidence of NHF involvement
  • Paystubs for the preceding three months, copied
  • Depending on the loan amount requested, an equity investment or personal ownership may be required.

The Steps for Registering a Federal Mortgage Loan

All Nigerians in employment, whether self-employed or employed, are required to contribute 2.5 percent of their basic salary/income to the fund under the NHF Act No.3 of 1992.

The registration procedure is as follows:

  • The Federal Mortgage Bank of Nigeria will send an Employer Registration Form (NHF1) to employers (FMBN).
  • Employers must complete Form NHF1 and deliver it to their local Federal Mortgage Bank of Nigeria office.
  • The Employer will be registered with the Federal Mortgage Bank of Nigeria and given an employer registration number.
  • Employers will be given form NHF2 by the Federal Mortgage Bank of Nigeria, which employees would fill out. Alternatively, you can directly contact self-employed or individual consumers.
  • The employee will complete and deliver the NHF2 form to the employer.

The employer or self-employed persons will submit completed form NHF2 to the Federal Mortgage Bank of Nigeria.

  • Employees will be registered on Form NHF2, and each employee/self-employed individual will be assigned a participation number.
  • Each registered employee will receive a passbook from the Federal Mortgage Bank, in which the employer will record the monthly deduction of his or her 2.5 percent basic income.
  • Contributions will be deducted at the source by the employer. They will then submit such deductions/contributions to Nigeria’s Federal Mortgage Bank. It will be accompanied by a payment schedule that details the amount each employee contributed as well as the quantity of time covered
  • Self–employed individuals’ contributions will be remitted to FMBN on a monthly basis.
  • Contributions will be accepted and payment receipts will be issued by the Federal Mortgage Bank of Nigeria.

What is the Maximum Amount you Can Apply For?

You may be eligible for a maximum loan of N15 million, or as the bank may advise, however, no one should be given credit for more than 90% of the value of the mortgaged property. Check out Nigeria’s Federal Mortgage Bank to see how you can get in touch with them. 




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