Act 3 of 1992 established the National Housing Fund (NHF).
Section 2 of the Act outlines the aims and objectives of the fund. Sections 20, 21 and 22 defines the offences and penalties for non-compliance. Act 3 is being amended to bring it in line with new realities aimed at strengthening the National Housing Fund.
Get access to the NHF Act.
The NHF scheme is for Nigerians in all sectors of the economy, particularly those within the low and medium-income levels who cannot afford commercial housing loans e.g. civil servants, traders, artisans, commercial drivers, etc. Any intending beneficiary must be a registered contributor and up to date with his/her contributions.
The 2.5% of the monthly basic salary contribution qualifies you to access the loan. The pool of funds created by the contributors nationwide becomes available to any contributor to borrow from, after contributing for a minimum of six months.
A contributor interested in obtaining NHF loan applies through a registered and duly accredited mortgage loan originator (e.g. Primary Mortgage Banks), who packages and forwards the application to FMBN.
No. the loan amount is determined by the applicant's affordability. This entails his/her income level that will enable repayment of the loan.
NHF housing loan are repaid in monthly installments from the income of the beneficiary. This mode of repayment has the advantage of being both affordable and convenient.
Yes. A prospective applicant can liaise with a mortgage loan originator (e.g. PMB etc.) in Nigeria to process a loan application.
The property can be located anywhere in Nigeria. The applicant must however provide acceptable title documents to the land.
The only collateral is the property to secure the loan for. No other collateral is needed for the loan.
A contributor can only obtain NHF loan facility once in a lifetime.
A contributor is eligible to access a maximum loan amount of =N=15 million repayable over a maximum period of 30 years at an affordable interest rate of 6%.
No. A prospective applicant who wishes to obtain a loan to build a house is expected to have his/her land as well as an acceptable title to the land prior to the application for NHF loan.
Yes. You can apply as an individual for NHF loan to develop a land or buy directly from government consort estate or private estate developer.
The bank can finance the building of staff quarters and student’s hostels in Higher Institutions of Learning if they are under a registered Co-operative body which makes them eligible to access the Cooperative housing development loan (CHDL) and subsequently purchase the funded houses through NHF. Students’ hostels are currently not financed by the bank since they are transit accommodation. However, the bank is making the necessary arrangements in regard to funding of students hostels in the near future
Yes, self employed NHF contributors can access construction loan to develop their personal residential properties.
Yes, R-of-O can be used as a title document on the condition that the owner will submit evidence of processing the Certificate of Occupancy (C-of-O) and the undertaking that the C-of-O will be deposited in the Bank when it is obtained.
Yes, a Co-operative Society can use its own in-house professionals to access CHDL as long as they are qualified professionals and possess the necessary certifications and experience.
No, the Bank does not accept letter of Grant in accessing construction and NHF loans.
It is not within the mandate of FMBN to construct houses directly for NHF contributors.
Customers cannot edit their profile on these platforms however they can do this through the Update Form available on the FMBN website, or by visiting the nearest branch office for the update.
Yes, Staff in our Branch offices have access to an application to produce statement of account for Federal Workers
This can be affected by 3 factors
This is a labour law in Nigeria that no organization can deduct more than ⅓ of applicant’s monthly income on any loan. Labour Act, 1974 stated that “any other provision of this Act, the total amount of deductions that may be made from wages of a worker in any one month shall not exceed one-third of the wages of the worker in that month".
FMBN is working with the PMB’s to harmonize all charges, and to also educate applicants on all official charges.
Yes, because Deed of Assignment is a document that transfers ownership when it is duly registered.
No, pension contribution cannot be used as equity contribution or personal stake.
Yes, the person must be a consistent NHF contributor for at least 6 months.
The NHF Act states that NHF contributions can only be refunded to a contributor that has attained 60 years of Age or has put in 35 years in service.
NHF Refund for Federal workers and other contributors are not decentralized as their contributions are centrally collected through IPPIS.
The Rent-To-own Product is structured for the formal sector such that Rental payments will be deducted at source by the employer, as such, self-employed are not eligible to apply for Rent-To-own.
A contributor can apply for NHF loan after benefitting from HRL however, such contributor must have liquidated the Home Renovation Loan granted to him or her.
Yes, HRL is a revolving loan. A contributor can apply for NHF loan upon liquidation of his or her existing Home Renovation Loan.\n
However, at the point the contributor owns a house through either of the Banks window (NHF or RTO), he can not apply for HRL loan any longer.
The Home Renovation Loan is structured for the formal sector such that the loan repayment will be deducted at source by the employer, as such; an Informal Sector Cooperative member and self-employed individuals are not eligible to apply for Home Renovation Loan.