People often get confused when it concerns how the National Housing Funding Loan in Nigeria works? Many people are scared because they feel it’s too good to be true. 

However, the National Housing Funding Loan is real and knowing how it works can help you get your dream house at a low interest rate.

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In this article, you’ll learn how to qualify for the national housing funding loan in Nigeria. You will also learn the documents needed for this process.

What is the National Housing Funding Loan (NHF)

The National Housing Fund (NHF) is a Federal Government scheme that provides long-term funds. This funds comes from Nigerian workers, banks, insurance companies and the Federal Government. 

They give out these loans at soft interest rates to its contributors. This enables Nigerians particularly those within the low and medium-income levels to own houses. 

Eligibility For National Housing Funding Loan in Nigeria

Applying for the National Housing Funding Loan in Nigeria is straightforward. However, you need to qualify for the loan application first. You have to meet certain requirements to be able to qualify for the NHF Loan in Nigeria. 

1. Age Requirement

Only applicants who are 18 and have not passed the retirement age of 60 are qualified. This is to make sure that the loan can be repaid before the applicant retires. 

2. Employment Status

Both workers in the public and private sector are qualified. However, if you are self-employed, you will provide proof of income stability. This is to know if the applicant can repay the loan within the specified time. 

3. Nationality

The National Housing Funding Loan in Nigeria scheme is open to all Nigerians.  Whether you are resident within the country or in the diaspora, you can benefit from it.  

4. Property Requirement

The property for which the loan is being applied must be in Nigeria. It must also be for residential purposes, not commercial use. 

You will provide land title documents. This is to ensure that you own the land and can develop it. 

5. Contribution Requirements

You can’t just get a National Housing Funding Loan in Nigeria fund out of the blue. The applicant must have contributed to the fund. 

This must go on for a period of not less than six months before you apply for a loan. 

6. Current Financial Situation

You should know how much you can afford to borrow. This helps you look for a house or building project that fits your loan budget. 

Check out how much you can borrow and use it to make a plan. It’s important to cut your coat according to your size. So stick with the loan budget when making your choice. 

How to Apply For a National Housing Funding Loan in Nigeria

1. Registration

Registering as an NHF is the first step to your loan application process. You can do this through your employer. 

Your employer will handle the registration and remit contributions to the FMBN. 

2. Choosing a Primary Mortgage Bank (PMB)

This is the second step in getting a National Housing Funding Loan in Nigeria. Choose a PMB accredited by the FMBN. The PMB acts as a middleman through the application process. 

The primary mortgage bank is in charge of submitting your application to the FMBN. 

3. Loan Application

Fill out the loan application form given by the PMB. You will be required to input your personal information and employment details. 

Additionally, the purpose of the loan will be stated in the application form too.  

4. Providing Necessary Documents

Getting the National Housing Funding Loan in Nigeria requires a lot of documents. Get and submit the necessary documents. 

These include proof of NHF contributions, employment verification, land title documents. 

Also, you will submit the  building plans if you are building a new house. The documents will be reviewed by the PMB. This is to make sure they meet the requirements. 

5. Loan Approval

The Federal Mortgage Bank of Nigeria approves the National Housing Funding Loan in Nigeria. But the PMB will be the one to forward the loan application to FMBN. 

The FMBN will review the application. This is done based on the applicant’s contribution history. Also, they check for the repayment capacity. They also check if the housing project is feasible 

6. Distribution to the PMB

The FMBN will distribute the funds to the PMB once it’s approved. The PMB will be the one to release the funds to the borrower. 

The PMB monitors the use of the funds to make sure they are used for the intended purpose. 

Documents Required to Access the National Housing Funding Loan in Nigeria

Qualifying for the national housing funding loan in Nigeria comes with certain document requirements.  Some of these include:

• Proof of income stability to guarantee the loan: This document shows the lender how much income the borrower has over a given time. This can be statements from bank accounts. It can also be other financial transactions showing a consistent flow of income.
• Photocopies of valid title documents ( C of O): Certificate of Occupancy (C of O) is a legal document that shows ownership of a property. You must provide photocopies of survey plans and survey cloth copies to obtain a C of O.
• Approved survey/site plans: This is a document that shows the location and boundaries of a property. This document is created by a registered land surveyor. The document must be approved by the director of land surveys.
• Approved building plans: This is a requirement for the national housing funding loan in Nigeria. This is the final construction plans/documents. And this must be approved by the local governing body.  
• Priced Bill of Quantities where applicable: This document is prepared by a quantity surveyor or cost consultant. It determines the quality and quantity of work to be carried out by the main contractor to complete a project.
• Three years tax clearance certificate: This is also necessary when applying for the national housing funding loan in Nigeria.  A tax clearance certificate is a document issued by a revenue authority. This shows that a person has paid taxes in full and has no due tax.
• Letter of consent to mortgage to your chosen PMB: This is a document that shows that the lender wants to provide a loan to the borrower using the property as security.
• Completed prescribed mortgage loan application form: This is the application form from your mortgage bank. You are meant to have filled in every detail in the form. 
• Evidence of National Housing Fund participation: This shows that the borrower has contributed to the national housing funding. You will provide a copy of pay-slips for the previous three-months.
• Equity contribution: This is a proof that the borrower has paid their equity contribution. This indicates their financial stake in the transaction. This is a necessary requirement when applying for the national housing funding loan in Nigeria. 

Benefits of the NHF 

The National Housing Fund Loan in Nigeria offers numerous benefits to contributors. These benefits includes;

1. Affordable Interest Rate

The National Housing Funding Loan in Nigeria comes with a low interest of 6% per annum. 

This is lower compared to the market rate. This makes it easy for people to get affordable homes in Nigeria.   

2. Long Repayment Time

NHF gives you extended time to repay their loans. This period can be up to 30 years. This allows borrowers to pay the loan at a considerable pace. 

3. Low-Cost Housing

Through estate development loans and the rent-to-own scheme, the NHF facilitates the development of low-cost housing units, making it easier for Nigerians to access affordable housing. 

4. Home Improvement

The home renovation loan enables homeowners to improve their living conditions. This is by providing funds for renovations and repairs. 

5. Promotes Savings

The contributions to the NHF encourage a culture of savings among Nigerians. This savings can be used to secure housing finance in the future.

Conclusion 

Going about the whole loan application process will definitely be stressful. This is why you have to be informed before you start applying for the National Housing Funding Loan in Nigeria. 

Be sure that you meet qualified and experienced people in the field. This helps you avoid mistakes that can affect your application process. 

Frequently Asked Questions (FAQs)

1. How much can I apply for?

The maximum loan to get from the National Housing Funding Loan in Nigeria is N15 million. 

2. Can I get a Loan more than the cost of the property?

No applicant will be granted a loan more than the cost of the property to be mortgaged.   

3. How long does it take to process NHF?

It takes at least 3-6 months depending on the geographical location of the property and customer’s ability to satisfy all the requirements.