Are you looking for federal mortgage bank loan application then this article is for you will all information about the Federal Mortgage.
The Federal Mortgage Bank of Nigeria (FMBN) was founded in 1956, before taking over the title of the highest mortgage institution in Nigeria in 1994. Since then, it has managed and overseen the contributory savings scheme, dubbed The National Housing Fund (NHF)
The NHF is an investment in social savings that aims to raise long-term funds for concessionary loans to the contributors.
It is one of the primary functions that are a part of FMBN. A Federal Mortgage Bank loan is available in Nigeria is governed by the provisions of the National Housing Fund Act(1992).
Table of Contents
Who Can Apply for a Federal Mortgage Bank Loan?
You must be an Nigerian and at least at 18. You must be an active contributor in the National Housing Fund for six months. The applicants must also provide proof of a steady source of income.
Purpose of a Federal Mortgage Bank Loan
The loan is intended primarily used for the construction, purchase or renovating residential property. The credit cannot be used to be used for refinancing.
Requirements of The FMBN Loans
- Savings account that is registered with the primary mortgage bank
- Contributions to the fund are for a minimum period of six months.
- The evidence of a steady source of revenue.
- Photocopies of other documents that support titles documents.
- Site plans and survey
- A duplicate of an approved plan of construction
- The Bill of Quantities (If you have one)
- Valuation report is prepared by licensed surveyors, valuers and registered assessors when the need arises.
- Tax clearance certificate valid for three years
- Letter of agreement to your primary mortgage bank
- Form for mortgage loan application that is completed
- The evidence that National Housing Fund contribution
- Payslips from the past three months
- If you are a self-employed candidate A copy of the Articles as well as Memorandum of Association and a copy of the Certificate of Incorporation should be provided.
How To Apply for a Federal Mortgage Bank Loan
In essence, the person applying to make an application through an accredited and licensed primary mortgage institution , and not through The Federal Mortgage Bank of Nigeria (FMBN) directly.
The primary mortgage lender that the applicant chooses to use must be covered by FMBN for access to the housing fund of the nation.
Formulas for applying for the NHF loans are available at the primary mortgage institutions. They are in essence the primary mortgage institutions that are part of the Central Bank of Nigeria to conduct mortgage banking. There is also more information about what you need to do to qualify for loans to your home..
How Much Can You Apply For?
A borrower may be allowed a maximum loan of N15m or, in some cases, depending on the advice given by the bank. However, nobody should receive credit that is greater than 90 percent of the worth of the property that is mortgaged.
Interest Rate
The interest rate will be according to the National Housing Fund Act, that is not higher than 6% annually.
Loan Tenure
The maximum period of repayment will be 30 years. Thus, borrowers must repay through the mortgage institution from whom they obtained the loan.
Federal mortgage bank Federal mortgage bank operates under the basis of collaborations with companies that are technical and financial that are interested in providing affordable housing to those on the lower end of the market.
For more details, here’s for more information, here’s a CBN certified list of loan providers within Nigeria. Also, take a look at our articles about other commercial bank loans, such as that of the Zenith Bank loan and others.
WE hope the above information has helped you with federal mortgage bank loan application and if not kindly drop a comment below.