How to get a loan from the Federal Mortgage Bank Of Nigeria (FMBN)

Federal Mortgage Bank Of Nigeria (FMBN) is the apex mortgage institution in Nigeria tasked with the responsibility of providing long-term credit facilities to mortgage institutions in Nigeria. FMBN was established in 1956 as the Nigerian Building Society (NBS). As a result of a joint venture of the Commonwealth Development Corporation and the Federal and Eastern Governments of Nigeria. In 1973, the Federal government fully acquired the then NBS and renamed it Federal Mortgage Bank Of Nigeria (FMBN).

The FMBN has many loan and credit facilities that is of big benefit to Nigerians, especially to low and medium income earners. One of it’s biggest loan facility is the National Housing Fund (NHF) which enables low income earners who are not able to have a house, build a house of their own.

With FMBN, you do not need to be rich to have a house. All you need to do is tap into its credit facility and you can get the right financial assistance to build your own house and pay back easily with long term. In this article, we will cover all the loans from the Federal Mortgage Bank Of Nigeria (FMBN) and how you can benefit from them.

Just to be clear, a mortgage is a loan that is mean to finance the buy, repair or anything to do with properties. So in Nigeria, the Federal Mortgage Bank Of Nigeria (FMBN) is the go to place for everything mortgage. They are the apex mortgage bank in the country.

Duties of Federal Mortgage Bank Of Nigeria (FMBN)

Below are the mandates of FMBN:

• Provide long-term credit facilities to mortgage institutions in Nigeria.
• Encourage the emergence and promote the growth of viable primary and secondary mortgage institutions to service the need of housing delivery in all parts of Nigeria.
• Mobilizing both domestic and offshore funds into the housing sector.
• Link the capital market with the housing industry.
• Establish and operate a viable secondary mortgage market.
• Collect and administer the National Housing Fund in accordance with the provisions of the NHF Act.
• Do anything and enter into any transaction which in the opinion of the Board is necessary to ensure the proper performance of its functions under the FMBN Act.

 

Federal Mortgage Bank Of Nigeria (FMBN) loan collateral requirement

The loan requirement for FMBN loan differs. It depends on the kind of loan you seek. Generally, the collateral requirement is very easy and something anyone should get. For example, the collateral requirement for the National Housing fund is the property to secure the loan for. That is, the property that you are seeking loan to build, you can use it as collateral!

Who can get a loan from the Federal Mortgage Bank Of Nigeria (FMBN)?

Any Nigerian that is over the age of 18 can access loans offered by FMBN. It is generally expected that applicant should be in paid employment or self employment.

How to get a loan from the Federal Mortgage Bank Of Nigeria (FMBN

Follow these steps to get a loan from the Federal Mortgage Bank Of Nigeria (FMBN:

1. Decide on the type of loan that you want.

The FMBN offers different loan facility to Nigerians. You need to decide which one is best for you. There is the NHF loan, Home renovation loan, estate development loan and more. You can find details of these loans below.

2. Get your documents and requirements ready

Once you have decided on the loan facility that suits you, get all the requirements for that loan ready.

3. Apply

Once you have meet requirements, you can apply. In many cases you do not apply directly to FMBN, you apply through accredited Primary Mortgage Banks (PMBs). You can reach out the the PMBs to help in your application.

Types of loans offered by the Federal Mortgage Bank Of Nigeria (FMBN)

Below are types of loan offered by the Federal Mortgage Bank Of Nigeria (FMBN)

1. NHF Mortgage Loan

The NHF loan is given to Nigerian for the purpose of getting a house of their own. You need to be a contributor.

You have to be a contributor to apply.

Purpose

• The loan shall be for the purpose of building, purchasing, or renovating a residential
  accommodation
• No loan shall be for refinancing

Who can apply

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

How to apply

• Applicant is to apply through a duly licensed and accredited mortgage loan originator (MLO) of
• his/her choice and not directly to Federal Mortgage Bank of Nigeria (FMBN).
• The MLO of the applicant’s choice must be accredited by FMBN to access the NHF facility.
• Application forms for NHF loans are obtainable from the MLO

How much can you get?

A borrower is entitled to a maximum loan of fifteen million naira (N15, 000,000.00) or as determined
by the Bank

Interest rate

Interest rate shall be as prescribed by the National Housing Fund Act which is not more than 6%
p.a.

We have a full article, read: How to get the National Housing Fund (NHF loan) from FMBN

2. Estate Development Loan

The EDL is a facility granted to private developers, State housing corporations and housing cooperatives to bridge the housing deficit through mass production of houses for ownership by NHF contributors. The facility is granted at 10% interest with a maximum repayment period of 24 months. It is a facility devised to facilitate large scale production of houses for sale to contributors at affordable prices and thereby, expand the availability of affordable housing in Nigeria. As a general policy of the Bank, houses produced through the EDL window should not exceed ₦15million in price and must be sold only to NHF contributors.

3. Construction Loan

The loan is to afford Nigerians an opportunity to access mortgage loans for the construction of homes. The product is specifically designed for Nigerians who are contributors to the National Housing Fund and desire to construct properties which are personally owned by them or through family ownership.

The procedures of the NHF construction loan are as follows:

• The applicant must be a contributor to the NHF scheme.
• The applicant must possess a land title (C of O) which must be in the name of the individual
• The applicant must possess approved building plan by the appropriate authority; Drawings and Bill of
• Quantity certifies by registered professionals.
• The construction work should be phased and documented in a work plan (30-30-40)
• Construction period of Six (6) months for bungalow and 8 months for duplex
• 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.
• 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 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.
• 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.

4. Home Renovation Loan

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

Who can apply

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

Purpose

To afford Nigerians an opportunity to access mortgage loans for the renovation or improvement of
their existing properties which are personally owned by them or through family ownership

How to apply

• At the Federal level, applications are aggregated by the Federal Government Staff Housing Loans
• Board (FGSHLB).
• At the State level, applications are aggregated by the relevant authority and forwarded to FMBN.
• Employees in the organised private sector (including other government agencies and parastatals not
• covered by the activities of FGSHLB) the applications are aggregated by the Permanent Secretary or
• Chief Executive of the organisation.

Things you will need

• Copy of application form for the Loan.
• Amortization Schedule (with the appropriate) Satisfactory credit checking 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

Federal Mortgage Bank Of Nigeria (FMBN) Interest rate

The interest rate is fixed at 6% p.a.

Federal Mortgage Bank Of Nigeria (FMBN) Head office address

Federal Mortgage Bank of Nigeria 266 Cadastral AO, Central Business District, PMB 2273 Garki, Abuja. Nigeria

Federal Mortgage Bank Of Nigeria (FMBN) Customer Service

The Customer care phone number is 09-2920689 and 09-2920690

The customer care email is info@fmbn.gov.ng

Federal Mortgage Bank Of Nigeria (FMBN) Website

The website is fmbn.gov.ng

List of Primary Mortgage Banks (PMBs)

Below are the Primary Mortgage Banks that you can access the NHS loan from:

1. Infinity Trust Mortgage Bank Plc
2. Platinum Mortgage Bank Ltd
3. Abbey Building Society Plc
4. First Trust Mortgage Bank Plc
5. Mutual Alliance Savings & Loans
6. Nigeria Police Mortgage Bank
7. Delta Trust Mortgage Bank Ltd
8. Jigawa Savings & Loans
9. City Code Savings & Loans Limited
10. AG Homes Savings & Loans Limited
11. Omolabi Mortgage Bank Limited
12. Lagos Building Investment Company Plc
13. Brent Mortgage Bank Limited
14. Gateway Mortgage Bank Ltd
15. FHA Homes Savings & Loans Ltd