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Terms & Condition: How to easily obtain an NHF Loan

How To Easily Obtain an NHF Loan To Build Your House

The National Housing Fund, NHF loan scheme was established to assist Nigerians, most especially those within the low and medium income levels to own houses they would ordinarily be unable to afford.

The people in this range comprise civil servants, traders, market women, artisans, and commercial drivers etc.

The assistance offered by the NHF comes in form of housing loans and mortgages.

But what are the criteria needed and the procedures required in order to be able to secure loans under the scheme?

Who can apply for an NHF Loan?

  1. Any Nigerian above the age of 18.
  2. Applicants are required to provide satisfactory evidence of regular income.
  3. Applicant must be a contributor to the National Housing fund for a period of six months. Deducted monthly contributions must be remitted to FMBN promptly.
  4. Applicant must have a satisfactory evidence of regular flow of income to guarantee loan repayment.


  1. The loan shall be for the purpose of building, purchasing or renovation a residential accommodation.
  2. No loan shall be for refinancing

How to apply for an NHF loan?

  1. Applicant is to apply through a duly licensed and accredited mortgage loan originator (MLO) of his choice and not directly to Federal Mortgage Bank of Nigeria (FMBN). It is the MLO who then packages your application and forwards it to FMBN.
  2. The MLO of the applicant’s choice must be accredited by FMBN to access the NHF facility.
  3. Application forms for NHF loans obtainable from the MLO.

Necessary documents

Documents required to process NHF loan include:

  1. Completed application form
  2. Photocopy of title documents
  3. Current valuation report on the proposed house to buy or bills of quantities (BOQ) for the house to build.
  4. Three years tax clearance certificate.
  5. Evidence of NHF participation
  6. Copy of pay slips for the previous three months.
  7. Equity contribution or personal stake of 20%, 10% or 0% depending on the loan amount applied for.

Security for the an NHF loan

  1. The property for which the loan is sought shall serve as security for the loan.
  2. The property must have valid title document (C of O)
  3. The property shall conform with the existing planning laws and regulations (approved building plan).
  4. The property shall possess sufficient value to recover the loan
  5. A mortgage property shall be insured against hazards.
  6. The loan shall be secured by first legal mortgage of the property between the applicant and the mortgage loan originator and the assigned to FMBN

How much to apply for?

  1. A borrower is entitled to a maximum loan of fifteen million naira (N15, 000,000).
  2. No individual should be given a loan in excess of 90% of the cost or value of the property to be mortgaged.
  3. Equity contribution based on the new loan amounts is as follows.

N15, 000,000 – 20%

N10, 000,000 – 10%

N5, 000,000   – 0% (No equity contribution is required for amounts in this range.)

Interest rate

Interest rate shall be prescribed by the National Housing Fund Act which is not more than 6% per annum.

How to repay your NHF loan

  1. The maximum repayment period shall be 30 years
  2. Individual borrower shall make repayment through the mortgage loan originator which they obtained the loan.

Terms & Conditions

  1. NHF loan cannot be used to purchase piece of land to build a house
  2. 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.
  3. Contributors can apply as an individual for NHF loan to develop a land or buy directly from government consort estate or private estate developer.
  4. A contributor can only obtain NHF loan facility once in a life time.
  5. The only collateral needed for NHF loan is the property in question. No other collateral is required to secure the loan.




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