The National Housing Fund (NHF) housing loan is an initiative by the federal government that is designed to assist Nigerians in having affordable homes with long-term, low-interest mortgages. The NHF loan is managed through FMBN, the Federal Mortgage Bank of Nigeria (FMBN). The NHF loan assists people with lower and middle incomes who regularly contribute towards the Housing Fund.
The program provides contributors with the opportunity to obtain housing loans with rates of 6% annually that can be repaid over 30 years, which makes this one of the cheapest mortgage options available in Nigeria. This NHF credit can be utilised to purchase, build or remodel the interior of a residential property anyplace in the country.
Knowing the NHF loan process can help applicants avoid delays, mistakes or fraud. Here is a complete description of the application procedure to determine eligibility and the required documents.
What Is the NHF Housing Loan?
The NHF Housing Loan is a mortgage loan that is financed by monthly contributions by Nigerian employees in both the private and public sectors under the National Housing Fund Act No. 3 of 1992.
Every contributor contributes 2.5 per cent of their monthly base income or salary towards the NHF that is administered by FMBN. The contributions allow members access to mortgages for homes with lower interest rates as compared to commercial mortgages.
The loan aids contributors in:
- Buy a residential property.
- Construct an individual home on private land.
- Expand or renovate an existing home.
The NHF mortgage for housing is part of Nigeria’s efforts to ensure homeownership is accessible for all Nigerians regardless of income.
Funding & Coverage
- source of funding: National Housing Fund (NHF) contributions are managed by FMBN.
- Loan Limit: Up to N15 million for a qualified applicant.
- Interest Rate: Fixed at 6% per annum.
- Lending Tenure The loan term can be up to thirty years, subject to the applicant’s income and age.
- coverage: Available in all 36 states as well as in the Federal Capital Territory (FCT).
- Target Group: The target group is middle- and low-income Nigerians who have made a contribution to the NHF for at least six consecutive months.
Eligibility
To be eligible to receive an NHF home loan, the applicant must meet the following requirements:
- You must be a Nigerian citizen of 18 or over.
- You must be an NHF contributing member with at the very least 6 months’ continuous contributions.
- Have a reliable and steady source of revenue.
- Make an application through an FMBN-accredited Primary Mortgage Bank (PMB).
- They intend to use the property for their private residence but not for commercial or rental reasons.
- Possess a valid land title or owner’s documents.
Step-by-Step Application Process
Follow these steps closely to be eligible for the NHF home loan:
Step 1: Register as an NHF Contributor
First, you must be registered at your National Housing Fund.
- If you’re employed, the employer will verify you and take 2.5 per cent of your base salary each month.
- Self-employed people can sign up in person at FMBN or any other accredited Primary Mortgage Bank (PMB).
Step 2: Select an Accredited Mortgage Institution
Applications are processed by approved Primary Mortgage Banks (PMBs) and not directly through FMBN. Visit an accredited PMB near you to confirm that they have a partnership in conjunction with FMBN.
Step 3: Obtain and Complete the NHF Loan Application Form
Get a formal NHF mortgage form and return it to the mortgage lender. Input the correct information, like details about your NHF number and personal details, as well as your property information.
Step 4: Attach Required Supporting Documents
Attach all the necessary documents (listed in the following) to confirm the authenticity of your name, earnings and ownership of property.
Step 5: Submit Your Application Through the Mortgage Bank
Send the completed application along with all supporting documents to your preferred PMB. The mortgage lender will determine your eligibility and then forward the application to the FMBN for approval.
Step 6: Loan Processing and Approval by FMBN
FMBN evaluates your application, confirms your NHF contribution records, appraises the property and then approves an appropriate loan amount.
Step 7: Loan Disbursement
After approval, FMBN releases the loan funds to the mortgage lender and then distributes the funds to the builder, developer or directly for a purchase of property.
Step 8: Repayment
Repayment starts after the loan has been paid and is made every month via the deduction of salary or direct payment in your mortgage accounts. The repayment will continue until the loan has been fully completed.
Required Documents
Applicants are required to provide the below documents:
- Completed NHF Loan Application Form
- NHF contribution number, as well as history of payments
- Identity proof (National Identity Card, driver’s licence, or international passport)
- Recent passport photographs
- Bank statements or payslips (for income verification)
- A tax clearance document or proof of tax payment
- Documents pertaining to the title of the home (Certificate of Occupancy, Deed of Assignment, etc.)
- Approved building plan or valuation report (depending on the intended use)
- A proof of the equity contributions (10%-30% of the property’s value depending on the size of the loan)
- Letter of reference to a bank or guarantor
Timelines
- Participation in NHF: Minimum of six months prior to the loan application.
- Approval of Application: 4-8 weeks based on the mortgage lender and verification of documents.
- The loan will be approved 3 to 6 months following completion of the application.
- The loan will be paid out after 30 calendar days following the loan’s approval.
- Repayment Time: Up to 30 years, based on your age and income.
Common Challenges or Warnings
- Complete Applications Documents that are not complete can lead to delays or even disqualification.
- Fake mortgage agents: You can only apply via the FMBN-accredited Primary Mortgage Banks.
- Properties that are not verified: Ensure your property is clear and has legally valid title documents.
- Late Updates on Contribution: Keep your NHF records current and up to date.
- Scams and unauthorised fees: FMBN does not charge any hidden processing fees.. Make sure to verify the payment prior to making it.
Summary Table
| Item | Details |
|---|---|
| Loan Program | NHF Housing Loan |
| Managed By | Federal Mortgage Bank of Nigeria (FMBN) |
| Maximum Loan Amount | ₦15 million |
| Interest Rate | 6% per annum |
| Loan Tenure | Up to 30 years |
| Funding Source | National Housing Fund (NHF) |
| Eligibility Period | 6 months of contribution minimum |
| Application Channel | Accredited Primary Mortgage Banks |
| Purpose | Build, buy, or renovate residential property |
Frequently Asked Questions
- Who can apply for the NHF housing loan?
Any Nigerian who contributes to the National Housing Fund for at least six months. - How much can I borrow?
Up to ₦15 million depending on your repayment ability and property cost. - What is the interest rate?
The NHF loan has a fixed 6% annual interest rate. - Do I need to be a civil servant?
No. Both public and private-sector workers, as well as self-employed individuals, can apply. - Can I apply directly to FMBN?
No. Applications must go through accredited Primary Mortgage Banks. - What can I use the loan for?
To build, buy, or renovate a residential home. - How long does approval take?
Between 2–3 months depending on document completeness. - What is the repayment duration?
Up to 30 years depending on age and income level. - Do I need collateral?
Yes. The financed property serves as the loan collateral. - Can I check my NHF contributions online?
Yes. You can check your NHF balance and loan status on the FMBN digital portal or via your mortgage bank. - What happens if I default on repayment?
Late payments may lead to penalties or property repossession by FMBN. - Can I apply jointly with my spouse?
Yes. Joint applications are allowed to increase repayment capacity.
Conclusion
The NHF Housing Loan is among Nigeria’s most trusted routes to low-cost homeownership. By regularly contributing towards the NHF, making your documentation, and applying through a reputable mortgage lender, you will be able to obtain low-interest financing for the purchase, construction, or remodelling of that dream house. Being consistent, having a clear and accurate document and having perseverance are essential to an effective application.
Disclaimer
This article is intended for educational reasons only. FederalGrantsInfo.com does not issue or process NHF housing loans. Always make an application through a verified government agency as well as an accredited primary mortgage bank.