How to Access National Housing Fund (NHF) Loan from Federal Mortgage Bank of Nigeria

NHF Loan – The National Housing Fund (NHF) is a federal government initiative Created to provide funds that will facilitate the provision of affordable housing for the Nigerian citizens. In this post, we will walk you through on how to access NHF loan from Federal Mortgage Bank of Nigeria.

NHF loan aimed at helping Nigerians who cannot afford commercial housing to own houses by contributing 2.5% of their monthly salary to Federal Mortgage Bank of Nigeria.

Requirements for accessing NHF loan

Applicants must not be less than 18 years and must be a Nigerian.
Must open/have a savings account with a registered Primary
Mortgage Bank (PMB).
Have an approved survey or site plans.
Priced bill of quantities where applicable.
Valuation report prepared by a firm of registered surveyors and valuers where applicable.
Must have been contributing to the National housing fund for a period not less than six (6) months.
Applicant must have satisfactory regular financial track record.
Applicants’ reason for the loan must be to build, acquire or renovate a house.

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The NHF loan security

The property for which the loan is obtained shall be the collateral
The property must have approved building plan and must have value equivalent to the loan
The property must have assurance.

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Loan amount

The highest amount you can obtain is N15 million.

Interest for the loan

The interest for the loan is as follows;

15million – 30% interest rate.
10million – 20% interest rate.
5million – 10% interest rate.

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How to apply for National Housing Fund (NHF) loan

Below is how to apply for NHF loan;

Open a saving account with PMB.
Start contributing 2.6% of your income for at least six (6) months.
Visit any Federal Mortgage Bank of Nigeria (FMBN) accredited
Mortgage Loan Originator (MLO) to obtain application form.
Fill the NHF form and submit back to your chosen MLO.

All Nigerians in employment, whether self-employed or in paid employment, are required by the NHF Act No.3 of 1992 to contribute 2.5% of their basic salary/income to the fund. The Procedure for registration is as follows:

The Federal Mortgage Bank of Nigeria (FMBN) will supply Employer Registration Form (NHF1) to employers.
Employers will complete form NHF1 and return to the nearest branch of the Federal Mortgage bank of Nigeria.
Federal Mortgage Bank of Nigeria will register the Employer and issue an employer’s registration number.
Federal Mortgage Bank of Nigeria will issue form NHF2 to employers for completion by employees or directly to self employed or individual.
Employee will complete the form NHF2 and return to the employer.
The employer or self-employed individuals will return completed form NHF2 to Federal Mortgage Bank of Nigeria.
Federal Mortgage Bank of Nigeria will register Employees on Form NHF2 and allocate employees participation number to each employee/self-employed individual.
Federal Mortgage Bank will issue a passbook to each of the registered employees where the monthly deduction of his/her 2.5% basic salary will be posted by the employer
At this point, an employee is now a registered participant of the National Housing Fund.
Employer will commence deduction of contributions at source. Such deductions/contributions are remitted to Federal Mortgage Bank of Nigeria with schedule of payment indicating the amount contributed by each employee and the period covered.
Self–employed contributors will also commence monthly remittances of contributions to FMBN.
Federal Mortgage Bank of Nigeria will accept contributions and issue receipts for payments.