November 28, 2022
Simple Steps To Get Federal Mortgage Loan In Nigeria

Simple Steps To Get Federal Mortgage Loan In Nigeria

Simple Steps To Get Federal Mortgage Loan In Nigeria

Federal Mortgage Loan in Nigeria

In this article, we will cover the best way to get a federal mortgage loan you will at any point want to apply for in Nigeria.

getting a federal mortgage bank loan in Nigeria is not as difficult as people think. Federal Mortgage Loan in Nigeria has helped more workers to have homes and others.

A good writing step-by-step explanation process as explained in this article will help you easily secure a mortgage loan at the federal level. Since federal mortgage loans come in different packages, it is important to know your specific need before applying for them.

What is a mortgage bank?

A mortgage bank is a monetary foundation that represents considerable authority in loaning advances against mortgages for explicit protections. Mortgage banks principally work by loaning their cash to borrowers and credit reimbursement is done portion with a specific financing cost once in a while they sell their advances on the auxiliary market.

The Federal Mortgage Bank of Nigeria (FMBN) was sent off in 1956 preceding accepting the situation with the zenith contract establishment for Nigeria, in 1994. From that point forward it has overseen and managed the contributory investment funds conspire known as the National Housing Fund (NHF)

The NHF is a social reserve fund undertaking to prepare long haul assets to progress concessionary advances to benefactors.

It works as one of the centre commands of the FMBN. The Federal home loan bank advance in Nigeria is under the National Housing Fund Act (1992).

Read More: How To Get Easy Loans and the Apps in Nigeria

The Purpose of a Federal Mortgage Bank Loan

Basically, the loan shall be mainly for building, purchasing, or renovating residential accommodation. No credit shall be for refinancing.

Who is eligible for the Federal Mortgage Loan?

Eligibility permits you to have a possibility of getting approved for a government Mortgage loan. To be viewed as qualified, guarantee you have the accompanying standards;

  1. You must be 18 years and above
  2. You must use NHF 1 (employer) and NHF 2 (employee) forms to register.
  3. Your chequebook must be updated and should be transferable from one job to another
  4. Must remit the monthly contributions they deducted to FMBN promptly (which must be at least 6 months’ contributions)
  5. You must have made contributions to funds for at least six months
  6. You must have a steady flow of income
  7. Savings account with a registered primary mortgage bank
  8. Contribution to the fund for a minimum of six months.
  9. Evidence of a regular flow of income.
  10. Photocopies of other substantiating title documents.
  11. Survey and site plans
  12. A copy of an approved building plan
  13. Bill of Quantities (If you have one)
  14. Valuation report prepared by registered surveyors and valuers where applicable
  15. Tax clearance certificate for three years
  16. Letter of consent to your chosen primary mortgage bank
  17. Completed mortgage loan application form
  18. Evidence of National Housing Fund contribution
  19. Payslips for the previous three months
  20. If you are a self-employed applicant, a copy of the Articles and Memorandum of Association and a copy of the Certificate of Incorporation should be submitted.

How to Apply For the Federal Mortgage Loan

Federal Mortgage Bank of Nigeria for the loan (FMBN) allows institutional borrowers to apply directly from them, As an individual, you can as well apply through a primary mortgage bank of your preference that is fully registered with the central bank of Nigeria.

Government Mortgage Bank of Nigeria for the loan (FMBN) permits institutional borrowers to apply straightforwardly from them, as an individual, you can also apply through a primary mortgage bank of your inclination that is completely enlisted with the central bank of Nigeria.

To apply for a mortgage loan, follow these instructions below;

  1. You must get the loan applications from the same Primary Mortgage Institution
  2. You must have registered your principal mortgage institution with FMBN, to use the national housing facility

Procedure for Federal Mortgage Loan registration?

Basically, it’s required under the law of Nigeria that every adult citizen of the country must contribute 2.5% of their basic income to the fund. The procedure registration goes thus;

  1. Your employers will receive an Employer registration form(NHF1) from the Federal Mortgage Bank of Nigeria
  2. Your employers will have to fill out and submit the NHF1 form to any Federal Mortgage Bank of Nigeria nearby.
  3. Your employers will be registered with the FMBN and they will be assigned to an employer registration number.
  4. Your employer will also be given NHF2 for employees to fill out, which will be submitted back to the FMBN
  5. The FMBN then assigns each employee to a particular registration number.
  6. After this, the FMBN will give each registered employee a passbook where their monthly deductions will be recorded. It is usually 2.5% of their income.
  7. They can now consider an employee a registered participant of the National Housing Fund.
  8. Then the employer will deduct contributions at the source.
  9. Payments will be remitted to the FMBN every month and receipt payment will be issued

How much can you apply for?

Just like every other loan, there are limits to what you can borrow as an individual. For a Federal Mortgage loan, an individual may be eligible to borrow up to 15 million Naira. However, banks may tell you otherwise because it involves a lot of risks.

The interest rate on Federal Mortgage Loan Nigeria?

No Loans are free. Loans come with a fixed price known as interest. For the Federal mortgage loan, the interest rate is about 6% per annum on every loan.

How to check your National Housing Fund contribution?

You are allowed to check your monthly contribution through the use of the USSD code or mobile app or visit their official website, to use the USSD code, follow these instructions.

  1. Dial *219# on your mobile number linked to your account
  2. A prompt will be displayed, select 2 and send
  3. Then enter 1, enter the exact month that you want to check

Loan Tenure

The maximum federal mortgage loan tenure repayment period shall be for 30 years. Therefore, individual borrowers shall make repayment through the primary mortgage institution through which they got the loan.

The Federal mortgage bank operates in a way that targets partnerships with organizations with financial and technical capacity, interested in delivering affordable mass housing for the low-income end of the market.

 

 

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