Get Loans From The Federal Mortgage Bank Of Nigeria (FMBN)

How To Get A Loan From The Federal Mortgage Bank Of Nigeria (FMBN)

To get loans from the Federal Mortgage Bank Of Nigeria (FMBN) is very easy. The Federal Mortgage Bank Of Nigeria (FMBN) is the apex mortgage institution in Nigeria tasked with the responsibility of providing long-term credit facilities to mortgage institutions in Nigeria.

What Is A Mortgage?

A mortgage is a loan that is mean to finance the buy, repair or anything to do with properties. So in Nigeria, the Federal Mortgage Bank Of Nigeria (FMBN) is the go to place for everything mortgage. They are the apex mortgage bank in the country.

About FMBN

The FMBN was established in 1956 as the Nigerian Building Society (NBS). As a result of a joint venture of the Commonwealth Development Corporation and the Federal and Eastern Governments of Nigeria. In 1973, the Federal government fully acquired the then NBS and renamed it Federal Mortgage Bank Of Nigeria (FMBN).

The FMBN has many loan and credit facilities that is of big benefit to Nigerians, especially to low and medium income earners. One of it’s biggest loan facility is the National Housing Fund (NHF) which enables low income earners who are not able to have a house, build a house of their own.

What Are The Duties Of Federal Mortgage Bank Of Nigeria (FMBN)

Below are the mandates of FMBN:

  1. Provide long-term credit facilities to mortgage institutions in Nigeria.
  2. Encourage the emergence and promote the growth of viable primary and secondary mortgage institutions to service the need of housing delivery in all parts of Nigeria.
  3. Mobilizing both domestic and offshore funds into the housing sector.
  4. Link the capital market with the housing industry.
  5. Establish and operate a viable secondary mortgage market.
  6. Collect and administer the National Housing Fund in accordance with the provisions of the NHF Act.
  7. Do anything and enter into any transaction which in the opinion of the Board is necessary to ensure the proper performance of its functions under the FMBN Act.

Federal Mortgage Bank Of Nigeria Loan Collateral Requirement

The loan requirement for FMBN loan differs. It depends on the kind of loan you seek. Generally, the collateral requirement is very easy and something anyone should get. For example, the collateral requirement for the National Housing fund is the property to secure the loan for. That is, the property that you are seeking loan to build, you can use it as collateral!

Who Can Get Loans From The Federal Mortgage Bank Of Nigeria (FMBN)?

Any Nigerian that is over the age of 18 can access loans offered by FMBN. It is generally expected that applicant should be in paid employment or self employment.

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:

1. Decide on the type of loan that you want.

The FMBN offers different loan facility to Nigerians. You need to decide which one is best for you. There is the NHF loan, Home renovation loan, estate development loan and more. You can find details of these loans below.

2. Get your documents and requirements ready

Once you have decided on the loan facility that suits you, get all the requirements for that loan ready.

3. Apply

Once you have meet requirements, you can apply. In many cases you do not apply directly to FMBN, you apply through accredited Primary Mortgage Banks (PMBs). You can reach out the the PMBs to help in your application.

List Of Loans Offered By The Federal Mortgage Bank Of Nigeria (FMBN)

Below are types of loan offered by the Federal Mortgage Bank Of Nigeria (FMBN)

1. NHF Mortgage Loan

The NHF loan is given to Nigerian for the purpose of getting a house of their own. You have to be a contributor to apply for the National Housing Fund Loan.

Purpose

  1. The loan shall be for the purpose of building, purchasing, or renovating a residential accommodation
  2. NHF mortgage loan is not for refinancing of outstanding debt

Who can apply for NHF Loan?

  1. Any Nigerian above the age of 18
  2. Applicant must be a contributor to the National Housing Fund for a minimum period of six months.
  3. Applicant must have satisfactory evidence of regular flow of income to guarantee loan repayment.

How to apply For National Housing Fund Loan

  1. Applicant is to apply through a duly licensed and accredited mortgage loan originator (MLO) of his/her choice and not directly to Federal Mortgage Bank of Nigeria (FMBN).
  2. The MLO of the applicant’s choice must be accredited by FMBN to access the NHF facility.
  3. Application forms for NHF loans are obtainable from the MLO

How much can you get from the National Housing Fund?

A borrower is entitled to a maximum loan of fifteen million naira (N15,000,000.00) or as determined
by the Bank

What is the Interest rate on NHF Loans?

Interest rate shall be as prescribed by the National Housing Fund Act which is not more than 6%
p.a.

 

Apply For National Housing Fund Loan

2. Estate Development Loan

The EDL is a facility granted to private developers, State housing corporations and housing cooperatives to bridge the housing deficit through mass production of houses for ownership by NHF contributors.
The facility is granted at 10% interest with a maximum repayment period of 24 months. It is a facility devised to facilitate large scale production of houses for sale to contributors at affordable prices and thereby, expand the availability of affordable housing in Nigeria.

As a general policy of the Bank, houses produced through the EDL window should not exceed ₦15million in price and must be sold only to NHF contributors.

3. Construction Loan

The loan is to afford Nigerians an opportunity to access mortgage loans for the construction of homes. The product is specifically designed for Nigerians who are contributors to the National Housing Fund and desire to construct properties which are personally owned by them or through family ownership.

How Can I Apply For NHF Construction Loan?

The procedures of the NHF construction loan are as follows:

  1. The applicant must be a contributor to the NHF scheme.
  2. The applicant must possess a land title (C of O) which must be in the name of the individual
  3. The applicant must possess approved building plan by the appropriate authority; Drawings and Bill of Quantity certifies by registered professionals.
  4. The turnaround time of the loan process is 77 days
  5. The applicant is to pay a non-refundable fee of N100,000.00 (One Hundred Thousand Naira) only for
    Application form, Legal Search, Valuation & processing fee.
  6. The Project Finance Group is to coordinate the disbursement of the loan and monitor the project
  7. The construction work should be phased and documented in a work plan (30-30-40)
  8. Construction period of Six (6) months for bungalow and 8 months for duplex
  9. Personal stake of 10% of the cost of the construction must have been utilized on the project before
    applying for the construction loan and must have been confirmed by the Bank’s professionals. Cost of
    plot and fence not part of it.
  10. Security for the loan shall be the title to the Land of application and insurance policy by the applicant
    (letter of consent and undertaking for direct debit to be written by the employer)
  11. Disbursement of the loan shall be done in tranches to the applicant based on the agreed work plan
    and BOQ (30-30-40)
  12. Regular monitoring of the project by the designated FMBN staff in the State office in conjunction with
    the State Coordinator and report to the Head Office on a weekly basis.
  13. Interest rate on the loan is 7% on annuity basis to the individual applicant
  14. Maximum loan tenor is 15 years

4. Home Renovation Loan

The loan is to afford Nigerians an opportunity to access mortgage loans for the renovation or improvement of their existing homes. The product is specifically designed for Nigerians who are contributors to the National Housing Fund and desire to renovate or improve existing properties which are personally owned by them or through family ownership.

Who can apply for FMBN Home Renovation Loan?

  1. Any Nigerian above the age of 18
  2. Applicant must be a contributor to the National Housing Fund for a minimum period of six months.
  3. Applicant must have satisfactory evidence of regular flow of income to guarantee loan repayment.

Purpose Of Home Renovation Loan

To afford Nigerians an opportunity to access mortgage loans for the renovation or improvement of their existing properties which are personally owned by them or through family ownership

How to apply for Home Renovation Loan

  1. At the Federal level, applications are aggregated by the Federal Government Staff Housing Loans Board (FGSHLB).
  2. At the State level, applications are aggregated by the relevant authority and forwarded to FMBN.
  3. Employees in the organised private sector (including other government agencies and parasatals not covered by the activities of FGSHLB) the applications are aggregated by the Permanent Secretary or Chief Executive of the organisation.

Documents/Items Required For Home Renovation Loan

  1. Copy of application form for the Loan.
  2. Amortization Schedule (with the appropriate) Satisfactory credit checking done.
  3. Offer letter properly executed.
  4. All Letters of Undertaking /confirmation properly executed.
  5. Evidence of up to date remittance of NHF contribution by the Applicant.
  6. Proof of Beneficiaries up to date NHF Contribution.
  7. Guarantor Form Appropriately checked

Full List of Primary Mortgage Banks (PMBs) In Nigeria

Below are the Primary Mortgage Banks that you can access the NHS loan from:

  1. Abbey Building Society Plc
  2. AG Homes Savings & Loans Limited
  3. Brent Mortgage Bank Limited
  4. City Code Savings & Loans Limited
  5. Delta Trust Mortgage Bank Ltd
  6. FHA Homes Savings & Loans Ltd
  7. First Trust Mortgage Bank Plc
  8. Gateway Mortgage Bank Ltd
  9. Infinity Trust Mortgage Bank Plc
  10. Jigawa Savings & Loans
  11. Lagos Building Investment Company Plc
  12. Mutual Alliance Savings & Loans
  13. Nigeria Police Mortgage Bank
  14. Omolabi Mortgage Bank Limited
  15. Platinum Mortgage Bank Ltd

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FAQs On How To Get Loans From The Federal Mortgage Bank Of Nigeria

What Is The Federal Mortgage Bank Of Nigeria (FMBN) Interest rate?

The interest rate is fixed at 6% p.a.

Where is the Federal Mortgage Bank Of Nigeria (FMBN) Head office address located?

Federal Mortgage Bank of Nigeria 266 Cadastral AO, Central Business District, PMB 2273 Garki, Abuja. Nigeria

What Is Federal Mortgage Bank Of Nigeria (FMBN) Customer Service Contact?

The Customer care phone number is 09-2920689 and 09-2920690

The customer care email is [email protected]

What Is Website Address OF Federal Mortgage Bank Of Nigeria (FMBN)?

The website is fmbn.gov.ng. Visit the the website to get additional info on how to get loans from the Federal Mortgage Bank Of Nigeria

Apply For Loans Without Collateral

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