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National Housing Fund: How to Access Federal Mortgage Bank Loan

Do you intend to build your own home? Renovate your outdated home? Have you ever heard of the National Housing Fund Loan? If you’re not, however, don’t worry; you haven’t missed anything at all. We are here to provide you with all the information you require regarding the Federal Mortgage Bank Loan and how to apply for their National Housing Fund Loan.

About National Housing Fund Program

The national housing fund loan is a special fund scheme introduced by the Federal Government through the Federal Mortgage Bank of Nigeria to provide affordable residential housing for Nigerians.

A national housing fund is basically for the purpose of building houses, purchasing, or renovating residential accommodation. The loan is not for the refinancing of any business. So, if you are planning to invest the loan in business, this loan is definitely not for you.

Types of Federal Mortgage Loan

For the purpose of the National Housing Funding Loan Scheme, we will limit our discussion to these two:

  • Home Renovation Loan
  • Construction Loan

Home Renovation Loan

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


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

General Features Home Renovation Loan

  • The maximum loan amount shall be $N,000,000, subject to the housing trust fund income limits of the beneficiary as well as the ultimate cost of renovation.
  • All federal civil servant applicants will apply through the Federal Housing Board. While state civil servants will apply through the Office of the Head of Service of the State or any other relevant authority recognized by the Bank, and employees of the organized private sector.
  • Approved loan amounts shall be disbursed in a lump sum to the Federal Housing Board (in the case of federal civil servants). But in the case of state civil servants and employees of the organized private sector, the approved loan shall be disbursed directly to the accounts of the beneficiaries.
  • The loan tenor shall be a maximum of 4 years or an employee’s remaining years of service, whichever is less.
  • Repayment of the loan shall be through monthly repayment for a tenor not exceeding 4 years, via direct deductions by the FHB and the respective Head of Service or Accountant General’s office of the states or other relevant authority recognized by the Bank for private-sector employees.
  • Monthly repayment shall not exceed 33 1/3 percent of the applicant’s monthly salary or income.
  • The interest rate shall be 8 percent for the duration of the loan for FGSHLB and 6 percent for state governments.
  • The facility shall not be available to any contributor who has enjoyed an NHF loan to build or buy a house.
  • A couple can apply for the facility jointly, subject to an income assessment of both parties.
  • The loan can only be taken once every five years.
  • Applications are to be submitted with certified bills of quantities, indicating the amount required for the renovation.

Checklist for the Loan

The national housing trust fund requirements or checklist include:

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

Construction Loan

A construction loan also affords Nigerians an opportunity to access federal mortgage bank loans for the construction of new homes. Just like the home renovation loan, this loan is specially designed for Nigerians who are contributors to the National Housing Fund and desire to construct properties that will be personally owned by them or passed down through family ownership.


  • Applicants shall be a contributor to the HFL scheme.
  • He/She must have a C of O in their name
  • The applicant must have a building plan approved by the appropriate authorities, Drawings, and the Bill of Quantity certifies by registered professionals.
  • The construction work should be phased and documented in a work plan (30-30-40)
  • The construction period of Six (6) months for bungalow and 8 months for duplex
  • A 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.

Other Features of the Construction Loan

  • 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 a direct debit to be written by the employer)
  • Disbursement of the loan shall be done in tranches to the applicant based on the agreed work plan and BOQ (30-30-40)
  • 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.
  • The interest rate on the loan is 7% on annuity basis to the individual applicant maximum loan tenor is 15 years
  • The Project Finance Group is to coordinate the disbursement of the loan and monitor the project.
  • The turnaround time of the loan process is 77 days.
  • 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.

How to Apply for National Housing Fund Loan

The National Housing Fund application process will go through different institutions’ concerns. Civil servants at the federal level shall direct their applications to the Federal Government Staff Housing Loans Board (FGSHLB).

Those at the state level shall direct their applications to the relevant authority and forward them to FMBN. Employees in the organized private sector and other government agencies and parastatals not covered by the activities of FGSHLB shall forward their applications to the Permanent Secretary or Chief Executive of the organization.


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