WHAT TO KNOW ABOUT NHF

FREQUENTLY ASKED QUESTIONS ABOUT THE NATIONAL HOUSING FUND(NHF)

What is NHF?

NHF (National Housing Fund) is a scheme created by the Federal Government for Nigerian workers, to help them access flexible financing for home ownership.

The scheme was established by the NHF Act of 1992 and is administered by the Federal Mortgage Bank of Nigeria (FMBN). With NHF, Nigerians can access a single-digit low interest-housing loan and utilise it for the purchase, construction, renovation or expansion of their residential buildings. It is a statutory contribution that stipulates that all Nigerians earning the minimum national wage and above, should contribute 2.5% of their basic monthly salary to the fund.

Can self-employed individuals access NHF?

Self-employed individuals can also apply for and access NHF loans as long as they have made the statutory contribution of 2.5% of their basic monthly salary/income and remitted to the fund.

How are contributions made?

Employers are required to deduct 2.5% from their worker's basic monthly salaries and remit the same to the Federal Mortgage Bank of Nigeria (FMBN) within one month of the deduction. While self-employed individuals are to pay their statutory contributions directly to the bank’s offices located in all state capitals. All payments are duly receipted.

How do I know the status of my contribution to the fund?

The Federal Mortgage Bank of Nigeria (FMBN) regularly provides annual statements of accounts to contributors. Contributors also have passbooks with unique participation numbers, which are updated by their respective employers after every deduction. This passbook shows the amount contributed at any given point in time.

How can I access a loan sufficient to purchase a home with just 2.5% of my basic salary?

The 2.5% contributions by all subscribers accumulate over time and form a pool of funds from which interested applicants can access housing loans. It is expected that only a fraction of contributors can obtain loans at any particular time.

How can a contributor access the NHF loan?

All applications for NHF loans are to be done via a duly accredited Primary Mortgage Bank (PMB). The PMB is then expected to package and forward each application to FMBN.

Is there a specific PMB that will handle NHF-enabled properties?

Yes, I have worked with a duly accredited Primary Mortgage Bank. They handled the processing of the NHF loan on behalf of my subscribers/contributors.

I already started processing my NHF for another project, can I still utilize it for your NHF-enabled properties?

No, you can only apply for NHF once. However, you can withdraw your application from your current PMB as long as a disbursement is yet to be made, after which you can then start a fresh application with us to become a subscriber with any of our projects.

Can my spouse and I apply for NHF together or separately?

No, you cannot apply jointly, each person will have to apply separately as long as they are both contributors to the NHF scheme.

I have once applied for NHF, but I collected less than N15,000,000, can I re-apply for the difference?

No. If you have collected an NHF loan before, you can’t apply again to get the difference. The funds you had earlier received were calculated based on your monthly earnings.

What are the documents required to apply for an NHF loan?

The documents include:

1. Completed application form
2. Photocopy of title documents
3. Current valuation report on the proposed house to buy
4. Tax clearance certificate
5. Evidence of NHF participation (Minimum of 6 months)
6. Copy of pay slips for the previous 3 months
7. Equity contribution

A comprehensive requirement list from our PMB partner will be shared upon request.

What is the mode of repayment?

NHF loans are repaid monthly from the beneficiaries' monthly salaries/income.

Can non-contributor access the NHF Scheme?

No. Only contributors with a confirmed record of six months of remittances can access the loan. Interested individuals who want to kickstart their registration can visit the FMBN office either at Ikeja, Apapa or Marina to obtain the card, and make the required payment before applying for the loan. We can also help facilitate this for busy subscribers interested in any of our NHF-enabled projects.

Is collateral required to qualify for the NHF loan?

The only collateral required from the loan beneficiary is the property in question. No other collateral is needed to secure an NHF loan.

What is the maximum loan amount and repayment period for NHF loans?

The maximum loan an applicant can get is N15,000,000, which is payable over a maximum period of 30 years at an affordable rate of 6%. The tenor of the NHF loan will be dependent on the age of the contributor minus the retirement age of 60 years.

What advantages does an NHF loan have over commercial housing loans?

• The major eligibility requirement is the provision of evidence of six months of contributions to the fund.
• The loan covers a large portion of the cost of acquiring a home, and its flexible payment options make it a more attractive option.
• Interests on NHF loans are lower which is 6%.
• The interest rate remains fixed throughout the loan tenor.
• It offers a long period for repayment up to 30 years depending on your age.
• Loan repayment is on a monthly basis.
• It is easily accessible to low and middle-income earners.
• You can change jobs without losing the benefits.

What happens to my previous contributions in the event of a job change?

Contributions are not lost in the event of a change of jobs or transfers. A duly completed NHF Registration Form (NHF II) is to be submitted to FMBN to indicate this change. The individual Registration Number, which is a permanent allotment, would then be transferred to the new employer to sustain the contributor’s records.

What is the cost associated with processing the NHF loan for a property?

• Interest rate: 6% per annum
• FMBN Processing Fee
• Valuation Report Fee
• Legal Search Fee
• PMB opening account balance

A comprehensive requirement list will be shared upon request

Key benefits

1. Interest rate remains fixed throughout the loan tenor.
2. It offers a long period for repayment of up to 30 years if your age can accommodate the same.
3. Loan repayment is on a monthly basis and can be regarded as monthly rent.
4. The property serves as security for the loan and no other collateral is required.
5. It is easily accessible to low and medium-income earners.

”The federal mortgage lending has gotten to the point where there is a place in it for everybody”

Do you have a cooperative society in your organization or you are personally an NHF contributor and will like to take advantage of NHF Loan for your home ownership leveraging our duly accredited PMB partner?

Send a Dm or a mail to [email protected] for NHF-enabled properties available