It is very simple to obtain loans from the Federal Mortgage Bank of Nigeria (FMBN). The Federal Mortgage Bank of Nigeria (FMBN) is Nigeria’s apex mortgage institution, tasked with providing long-term credit facilities to mortgage institutions.
What Exactly Is A Mortgage?
A mortgage is a loan used to finance the purchase, repair, or other aspects of real estate. So, in Nigeria, the Federal Mortgage Bank of Nigeria (FMBN) is the go-to place for all mortgage-related matters. They are the country’s leading mortgage lender.
About FMBN
The FMBN began as the Nigerian Building Society (NBS) in 1956. As a result of a collaboration between the Commonwealth Development Corporation and Nigeria’s federal and eastern governments. The Federal Government of Nigeria (FGN) fully acquired the then-NBS in 1973 and renamed it the Federal Mortgage Bank of Nigeria (FMBN).
The FMBN provides numerous loan and credit facilities to Nigerians, particularly low- and middle-income earners. One of its most important loan facilities is the National Housing Fund (NHF), which allows low-income earners who cannot afford a house to build one of their own.
READ ALSO: Are You Earning Under $100,000/year? Federal Government Wants To Support You
Federal Mortgage Bank Of Nigeria Loan Collateral Requirement
An FMBN loan has different loan requirements. It all depends on the type of loan you’re looking for. In general, the collateral requirement is simple and something that anyone should obtain. For example, the National Housing Fund’s collateral requirement is the property used to secure the loan. That is, you can use the property for which you are seeking a loan as collateral!
How To Get A Loan From The Federal Mortgage Bank Of Nigeria
Follow These Steps To Get A Loan From The Federal Mortgage Bank Of Nigeria (FMBN:
- Choose the type of loan you want.
The FMBN provides various loan options to Nigerians. You must decide which is best for you. There is the NHF loan, the home renovation loan, the estate development loan, and other options.
- Prepare your documents and requirements.
Once you’ve decided on the best loan option for you, gather all of the necessary documentation.
- Apply
You can apply once you have met the requirements. In many cases, you apply through accredited primary mortgage banks (PMBs) rather than directly to FMBN. You can contact the PMBs for assistance with your application.
NHF Mortgage Loan Offered By The Federal Mortgage Bank Of Nigeria (FMBN)
The NHF loan is given to Nigerians for them to purchase their own home.
Objective
- The loan must be used to construct, purchase, or renovate a residential structure.
- The NHF mortgage loan cannot be used to refinance existing debt.
Who Can Apply For NHF Loan?
- Any Nigerian over the age of 18 who wishes to apply must contribute to the National Housing Fund for a minimum of six months.
- To guarantee loan repayment, the applicant must provide satisfactory evidence of a consistent flow of income.
How to Apply for a Loan from the National Housing Fund
- The applicant must apply through a duly licensed and accredited mortgage loan originator (MLO) of his or her choosing, rather than directly to the Federal Mortgage Bank of Nigeria (FMBN).
- To gain access to the NHF facility, the applicant’s preferred MLO must be accredited by FMBN.
- NHF loan application forms are available from the MLO.
What is the maximum amount you can receive from the National Housing Fund?
A borrower may borrow up to fifteen million naira (N15,000,000.00) or as determined by the bank.
What Is The NHF Loan Interest Rate?
The interest rate shall be set by the National Housing Fund Act and shall not exceed 6%.
YOU MAY ALSO LIKE: Rent Support Loans From Government For Tenants Recently Announced
