Federal Mortgage Bank of Nigeria (FMBN): How to Access NHF Loans

By Favorite Grace On Jul 5, 2025

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Details on how to access NHF loans can be found here on TJ News Nigeria.

The cost of homeownership in Nigeria remains out of reach for many low- and middle-income earners. To address this, the Federal Government established the National Housing Fund (NHF), managed by the Federal Mortgage Bank of Nigeria (FMBN), to provide affordable housing finance to Nigerians.

TJ News Nigeria reports that eligible citizens can now access mortgage loans of up to ₦15 million at an interest rate of 6% per annum — significantly lower than commercial mortgage rates.

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This article provides a detailed, step-by-step guide on how to access NHF loans through FMBN, including eligibility requirements, documentation, and loan repayment terms.

What Is the National Housing Fund (NHF)?

The NHF Scheme, created by Act No. 3 of 1992, is a mandatory contributory fund aimed at providing long-term housing loans at affordable rates to Nigerian workers.

Key Objectives:

Mobilize funds for housing development.
Encourage low-interest loans for home ownership.
Provide affordable mortgage financing through FMBN.

About the Federal Mortgage Bank of Nigeria (FMBN)

FMBN is Nigeria’s apex mortgage institution responsible for:

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Managing the NHF scheme.
Disbursing affordable loans to qualified contributors.
Partnering with Primary Mortgage Banks (PMBs) and developers to provide housing finance.

TJ News Nigeria learnt that over ₦300 billion has been disbursed by FMBN under the NHF in the last decade, helping thousands of Nigerians purchase or build homes.

Who Is Eligible to Access NHF Loans?

To qualify for an NHF mortgage loan via FMBN, applicants must:

Be a Nigerian citizen
Be 18 years and above
Have a steady income (salaried or self-employed)
Contribute 2.5% of monthly basic salary to the NHF for at least six months
Not have previously benefitted from an NHF loan

Note: Both public and private sector workers are eligible. Self-employed Nigerians can also contribute voluntarily.

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Documents Required for NHF Loan Application

Applicants must provide the following:

For Individuals:

Completed NHF Loan Application Form
Evidence of NHF contributions (from employer or self)
Pay slips or income statements (last 6 months)
Letter of employment or business registration documents
Valid means of identification (NIN, Driver’s License, Int’l Passport)
Utility bill (proof of residential address)
Recent passport photographs

For Property:

Offer letter or sales agreement
Approved building plan
Title documents (e.g., Certificate of Occupancy, R of O, deed of assignment)
Property valuation report by a registered valuer

Step-by-Step Guide: How to Access NHF Loans from FMBN

Step 1: Register and Start Contributing to NHF

Register through your employer or a licensed Primary Mortgage Bank (PMB)
Contribution: 2.5% of basic monthly salary via payroll or self-payment

Step 2: Apply Through a PMB or FMBN Office

Visit any accredited Primary Mortgage Bank
Alternatively, approach a state FMBN office directly
Submit completed forms and all required documentation

Step 3: Property and Legal Verification

FMBN or your PMB will verify all title documents
A valuation of the property is done to determine true value
Legal due diligence is conducted to ensure no encumbrances

Step 4: Loan Approval and Disbursement

Upon approval, FMBN disburses funds directly to the property owner or developer
You begin monthly repayments through your mortgage bank

NHF Loan Features and Terms

Feature	Description
Loan limit	₦15 million per applicant
Interest rate	6% per annum (fixed)
Repayment tenure	Up to 30 years (max age 60/65)
Equity contribution	10% (for ₦5M and below), 20% (above ₦5M)
Down payment	Required before approval
Loan security	Mortgage on the property

TJ News Nigeria gathered that joint applications (husband and wife) are also allowed for increased loan amounts.

Types of NHF Loans via FMBN

1. NHF Mortgage Loan

Traditional home loan to buy or build a residential property.

2. Home Renovation Loan

Up to ₦1 million to renovate or improve an existing home.
No title documents required.

3. Rent-to-Own Scheme

Available in selected FMBN housing estates
Occupants pay rent monthly, which counts toward home ownership

4. Individual Construction Loan

Funds disbursed in stages to build a home on personal land.

Tips to Speed Up Approval

Begin contributions well before you need the loan (at least 6 months).
Ensure all property documents are clean and verifiable.
Work with a registered PMB to navigate paperwork faster.
Keep your employment records and pay slips updated.
Use a reputable developer if buying off-plan property.

Common Pitfalls to Avoid

Incomplete documentation
Property without valid title
Delays in NHF contribution remittance by employer
Applying without confirming your NHF balance
Not involving legal counsel during land verification

Where to Apply for NHF Loans

You can begin your NHF loan process at any:

Accredited Primary Mortgage Bank (PMB)
State office of the Federal Mortgage Bank of Nigeria
FMBN Zonal Offices in Abuja, Lagos, Enugu, Port Harcourt, and other regions

For a list of accredited PMBs, visit: https://www.fmbn.gov.ng

📊 Sample Loan Calculation

If you borrow ₦8 million at 6% interest over 20 years:

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Monthly payment ≈ ₦57,000
Total repayment = ₦13.7 million
Total interest paid = ₦5.7 million

This is significantly cheaper than commercial bank mortgages at 15–22%.

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Final Note

The FMBN NHF loan is Nigeria’s most affordable path to homeownership — but the process requires patience, complete documentation, and legal diligence. With proper guidance, even low-income earners can secure a permanent roof over their heads.

TJ News Nigeriareports that more digital integration and streamlined processing are expected in future NHF reforms to make access easier.

That’s all for now. Thank you for using our platform to learn about the Federal Mortgage Bank of Nigeria (FMBN) and how to access NHF loans.

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