Are you looking for an easy, affordable, and convenient way to own your home? You should register and contribute to the National Housing (NHF) Scheme. The Scheme, established in 1992 by the Federal Government as a source of long-term funds for powering housing development, presents a convenient and cost-effective opportunity for Nigerians within the low and medium-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 homes possible for over 36,617 Nigerians at best market rates.
How to Start: Participation in the NHF Scheme is open to all Nigerians eighteen years and above working in the public, private, and informal sectors. This includes civil servants, private sector employees, and self-employed persons such as small business owners, tailors, barbers, digital content creators, comedians, actors, etc. The important thing is to have a verifiable means of income.
What You Need to Do: Registered participants must contribute 2.5 percent of their monthly income to the Scheme. 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).
Profiles of FMBN Housing Products:
National Housing Fund Mortgage Loan. The Loan provides up to N15 million at a 6 (six) percent interest rate to NHF subscribers to purchase their dream homes. 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 deliver one, two and three-bedroom bungalows and apartments at prices ranging from N4M to N15M, respectively, nationwide.
Unlike commercial mortgage loans, the FMBN NHF Mortgage Loan offers very convenient terms. First, beneficiaries can repay the loans in monthly installments over 30 years. Second, loans of N5 million and under attract zero percent equity, and those over N5 million to N15million require a flat equity of ten percent.
Individual Home Construction Loan. 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 N15 million at a seven percent interest rate to beneficiaries to pay back over 15 years.
FMBN Rent-To-Own Housing Scheme. The Rent-to-Own Scheme makes it possible for an NHF contributor to move into an FMBN-owned housing property as a tenant and pay toward ownership of the property in monthly or annual installments for up to 30 years at an interest rate of seven percent!
FMBN Home Renovation Loan. The Home Renovation Loan provides up to N1million NHF contributors who own their homes to carry out improvements.
NHF Diaspora Mortgage Loan: The NHF Diaspora Mortgage Loan is designed for Nigerians who live abroad but are registered contributors to the National Housing Fund Scheme to access affordable mortgage loans of up to N50M to own a home in Nigeria. Terms include a 30 percent equity contribution, a 9 percent interest rate, and a ten-year payback period.
Interest-Free Rent-to-Own (Ethical RTO) Scheme: FMBN developed the product to eliminate the challenges that Nigerians who want to own their homes through the National Housing Fund Scheme face because of 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 and non-FMBN-funded homes and conveniently pay towards full ownership, using monthly/quarterly, or annual rentals.
The Bottom Line: Owning a home is a capital-intensive venture. However, when you register and contribute to the National Housing Fund Scheme, you can get mortgage loans payable over 30 years at single-digit interest rates and a maximum of ten percent equity to own your homes. NHF Registration is available at all FMBN Branch offices in state capitals nationwide and https://fmbn.gov.ng/Contact/contact-us.html . You can also call an FMBN Housing Specialist via these numbers on their social media handles for more information: 09 292 0690; 0817 023 7904; 0908 797 3000.
Good luck as you use this information and take action to become a homeowner.
Agbo is a Mortgage Literacy Expert and a Public Advocate for Increased Access to Affordable Housing for Nigerians. He is based in Abuja.
