NHF – Aims and Objectives
Mobilization of funds for the provision of affordable residential houses for Nigerians.
Provide loans to Nigerians for erecting, purchasing or renovating houses.
Encourage programs that would enhance housing financing among low and medium income earners. The Fund is also to service the non – salaried informal sector.
Provide long term loans to Mortgage Institutions for lending to contributors of the Fund
NHF – Benefits
Housing loan of up to 70% of the cost of the house.
Interest on loans remains fixed throughout the life of the mortgage at 6% p.a.
Long period of repayment of up to 30 years.
Contributions can serve as additional old age security.
Up to N15 million can be borrowed.
Refunds with 2% interest on retirement.
Loan repayment is about the same as a typical monthly rent.
Every contributor has:
A lifetime registration number, a passbook for personal recording of contributions and an account statement.
PLEASE FIND BELOW OUR NHF GUIDE
NHF Mortgage Loans through PMBs
This facility is granted at 4% interest to accredited Primary Mortgage Banks (PMBs) for on-lending at 6% to NHF contributors over a maximum tenor of 30 years, which is secured by the mortgaged property. A contributor can access up to N15million from the Fund through an accredited PMI as a mortgage loan to build, buy, improve or renovate own home after 6 (six) months of continuous contributions. This lending conditions make the NHF unequalled as a vehicle for affordable housing delivery in Nigeria. View conditions.
Who can benefit from the scheme?
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 registered contributor and up to date with his/her contributions.
How can only 2.5% of my monthly basic salary or income be sufficient to obtain loan, to build a house?
The 2.5% of monthly basic salary contribution qualify 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.
How does a contributor obtain NHF loan?
A contributor interested in obtaining NHF loan applies through a registered and duly
accredited mortgage loan originator (e.g. PMI), who packages and forwards the application to FMBN while White Avenue as a Real Estate development company assists her clients by introducing them to credible PMI’S (Primary Mortgage Institution)
Is it the monthly contribution that determines the loans amount?
No. the loan amount is determined by the applicants affordability. This entails his/her income level that will enable repayment of the loan.
What is the mode of repayment?
NHF housing loan are repaid on monthly installation from the monthly income of the beneficiary. This mode of repayment has the advantage of being both affordable and convenient.
Can a contributor obtain NHF loan, if a mortgage loan originator is not in his/her state?
Yes. A prospective applicant can liaise with a mortgage loan originator (PMI etc.) in a neighbouring state or anywhere in Nigeria to process a loan application. Also, some PMIs are subsidiaries of banks, these banks may operate a desk on behalf of its subsidiary (i.e. MLO)
Are there restrictions as to where a contributor can build his/her house?
The property can be located anywhere as long as it is within Nigeria. The applicant must however provide acceptable title documents to the land.
How can a low-income earner get collateral for a loan?
The only collateral is the property in question. No any other collateral is needed to secure the NHF loan.
How many times can I get NHF loan?
A contributor can only obtain NHF loan facility once in a lifetime.
What is the maximum loans amount and repayment time for NHF loans?
A contributor is eligible to access a maximum loan amount of N15million repayable over a maximum period of 30 years at an affordable interest rate of 6%.
Can I obtain NHF loan to purchase a piece of land to build a house?
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 acceptance title to the land prior to the application for NHF loan.
Can I get loan as an individual to build a house or must I buy a government owned estate
or a private estate developer?
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. (e.g. White Avenue Real Estate)
What are the documents required when applying for the loan?
Documents required to process a loan include:
- Evidence of NHF contribution to FMBN for a minimum period of at least six months.
- Completed NHF application form
- Evidence of regular income for those working in an organised public sector E.g. Payslip for at least three (3) months. Statement of account for at least 6 months for self-employed persons
- Letter of undertaking from applicant that he/she is obtaining NHF for the first time
- Birth certificate or declaration of age
- Payment of any statutory fee in the course of this transaction
- Evidence of payment of Equity contribution or personal stake of 30% of the worth of house
- Offer letter for sale of the property been purchased
- Acceptance of offer of sale
- Current valuation report to be prepared by a registered Estate Surveyor
- NHF processing fee per individual applicant
- Mobile Number and Email address of individual applicant
NHF – Conditions for NHF Refund
CONDITIONS FOR REFUND OF NATIONAL HOUSING FUND (NHF) CONTRIBUTIONS
- Refund is made to a contributor who has attained 60 years of age or has put in 35 years in service.
- Refund is also made to a contributor that has obtained a loan, liquidated the loan and has
attained the age of 60 years or have put in 35 years in service.
- Retired from employment and becomes incapable of continuing the contribution to the Fund.
- Refund is made to the next-of-kin of a contributor in case of a deceased contributor. Documents required for refund of contribution
– Application letter requesting for refund of contribution. – Letter of offer of appointment.
– Photocopy of retirement letter.
– Letter of introduction from former Employer.
– Birth certificate or Declaration of age certificate. – Completed NHF Contribution withdrawal forms. – NHF passbook.
- Bank Account details through which refund would be paid.
- Medical Report of incapability to continue contributions due to failing health
- Letter of administration & Death Certificate (in case of a deceased contributor)
- Evidence of contribution (Receipt) for self-employed contributor
- Biometric Verification Number (BVN)
NHF – Procedure For Registration
All Nigerians in employment, whether self-employed or in paid employment, are required by the NHF Act No.3 of 1992 to contribute 2.5% of their basic salary/income to the fund.
The Procedure for registration is as follows:
1.The Federal Mortgage Bank of Nigeria (FMBN) will supply Employer Registration Form (NHF1) to employers.
2.Employers will complete form NHF1 and return to the nearest branch of the Federal Mortgage bank of Nigeria.
3.Federal Mortgage Bank of Nigeria will register the Employer and issue an employer’s registration number.
4.Federal Mortgage Bank of Nigeria will issue form NHF2 to employers for completion by employees or directly to self employed or individual.
5.Employee will complete the form NHF2 and return to the employer.
6.The employer or self-employed individuals will return completed form NHF2 to Federal Mortgage Bank of Nigeria.
7.Federal Mortgage Bank of Nigeria will register Employees on Form NHF2 and allocate employees participation number to each employee/self-employed individual.
8.Federal Mortgage Bank will issue a passbook to each of the registered employees where the monthly deduction of his/her 2.5% basic salary will be posted by the employer.
9.At this point, an employee is now a registered participant of the National Housing Fund.
10.Employer will commence deduction of contributions at source. Such deductions/contributions are remitted to Federal Mortgage Bank of Nigeria with schedule of payment indicating the amount contributed by each employee and the period covered.
11.Self –employed contributors will also commence monthly remittances of contributions to FMBN.
12.Federal Mortgage Bank of Nigeria will accept contributions and issue receipts for payments.
Visit us on the 5th floor of Yobe Investment House Plot 823 Ralph Shodehinde Street, CBD, Abuja. Call us on +234-909-958-2911 or +234-818-784-5406 to book an appointment for more clarification. You can also visit our website to see our
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