Eligibility and How To Apply For National Housing Fund (NHF)
Posted: April 25th, 2023, 4:14 am
The National Housing Fund (NHF) is an initiative of the Federal Government of Nigeria to help eligible citizens address their housing needs. The National Housing Fund (NHF) Act 3 of 1992 established the program, which primarily targets Nigerians who are employed and above the age of 21.
The objective of this program is to assist individuals with low incomes, who are unable to afford housing, in becoming homeowners. This is achieved through their monthly contribution of a portion of their salary to the scheme.
It is managed by the Federal Mortgage Bank of Nigeria (FMBN).
In this article, we will explore the eligibility requirements and how to apply for the National Housing Fund (NHF).
Who is eligible to apply for the National Housing Fund (NHF)?
The National Housing Fund (NHF) Act 2004 allows all Nigerian income earners, including those in paid employment or self-employment, to register for the National Housing Fund (NHF) scheme as long as they are at least 21 years old and earn an annual salary of over N 3,000. According to the Act, eligible individuals must contribute about 2.5% of their basic monthly salary to the Fund through the Federal Mortgage Bank of Nigeria (FMBN) once registered.
Eligibility Criteria
In order to qualify for a National Housing Fund (NHF) loan, you must satisfy the following eligibility requirements:
Current Tax Clearance/Payment Slip: You will have to provide a PDF copy of your latest tax clearance certificate/payment slip as part of the required documents.
Means of Identification (National I.D, Drivers licenses, International passport, Voter’s Card): For identification purposes, upload a digital copy of your national ID card, driver's license, international passport, or voter's card. Accepted image formats are PNG and JPEG.
Public servants are required to submit their letter of first appointment and the gazette of confirmation of appointment.
Mortgage subscribers must provide a letter of recommendation from any primary mortgage bank, along with evidence of a 10% initial deposit
Document required to apply for National Housing Fund (NHF)
To apply for a National Housing Fund (NHF) loan, you will need to provide the following documents:
1. A completed application form.
2. Photocopies of title documents.
3. A current valuation report for the property you intend to purchase, or bills of quantities (BOQ) if you plan to build a house.
4. A valid tax clearance certificate for the last three years.
5. Evidence of your participation in the National Housing Fund (NHF) scheme.
6. Copies of your pay slips for the previous three months.
7. An equity contribution or personal stake of 30%, 20%, or 10%, depending on the amount of the loan you are applying for.
National Housing Fund (NHF) interest rate
The interest rate applicable to the National Housing Fund (NHF) shall be in accordance with the provisions of the National Housing Fund Act, and shall not exceed an annual rate of 6%.
The maximum loan amount
Contributors can access up to N15 million.
Steps on how to apply for National Housing Fund (NHF)
To obtain the National Housing Fund (NHF) loan, follow these steps:
Find an accredited Mortgage Loan Originator (MLO)
Begin by locating an accredited Mortgage Loan Originator (MLO), which is also known as a Primary Mortgage Bank (PMB).
Obtain the Application Form
Application forms for the National Housing Fund (NHF) loans can be obtained from the MLO.
Fill out the Form
Fill out the application form with all the necessary information and ensure that you provide accurate details.
Submit all Required Documents
You will be informed of the necessary documents and procedures to follow. The PMB will forward your request to the Federal Mortgage Bank of Nigeria, and they will get back to you.
National Housing Fund (NHF) collateral
To obtain a loan from the National Housing Fund (NHF), the only required form of collateral is the property that will be purchased with the loan. No additional collateral is necessary to secure the loan.
National Housing Fund (NHF) Repayment
The repayment of the National Housing Fund (NHF) loan is structured to allow for a maximum repayment period of 30 years, with a highly affordable interest rate of 6%. Beneficiaries of the NHF housing loan are expected to make monthly installment payments using their income.
Benefits of National Housing Fund (NHF)
The National Housing Fund (NHF) offers various benefits to its participants, including:
1. Extended Repayment Period: The National Housing Fund (NHF) offers a long repayment period of up to 30 years, allowing individuals to pay back the loan at a comfortable pace.
2. High Borrowing Limit: Participants can borrow up to N15 million, enabling them to purchase or build their dream homes without financial constraints.
3. Additional Old-Age Security: Contributions made to the National Housing Fund (NHF) can serve as an additional form of old-age security, providing a safety net for retirement.
4. Comparable Loan Repayment: The repayment amount for NHF loans is similar to the typical monthly rent, making it an affordable option for homeownership.
5. High Percentage of Housing Loan: Participants can access a housing loan of up to 90% of the cost of the house, easing the financial burden of homeownership.
6. Fixed Interest Rate: The interest rate for the National Housing Fund (NHF) loans remains fixed throughout the life of the mortgage at 6% per annum, providing stability and predictability for borrowers.
7. Refunds with Interest: Upon retirement, contributors receive a refund of their contributions with an additional 2% interest, ensuring that their investment in the National Housing Fund (NHF) is profitable.
8. Personalized Record Keeping: Every contributor is issued a lifetime registration number, a passbook for personal recording of contributions, and an account statement, enabling easy record-keeping and management of their National Housing Fund (NHF) account.
In conclusion, the National Housing Fund (NHF) is a commendable initiative of the Federal Government of Nigeria aimed at assisting eligible citizens in addressing their housing needs. With a low-interest rate of 6%, long repayment period of up to 30 years, and a borrowing limit of up to N15 million, the National Housing Fund (NHF) provides a viable option for homeownership for individuals with low incomes. The eligibility requirements are straightforward, and the application process is easy to follow. Moreover, the NHF offers additional benefits such as old-age security, personalized record-keeping, and refunds with interest. We encourage eligible citizens to take advantage of this opportunity and apply for the National Housing Fund (NHF) to become homeowners and secure their future.
The objective of this program is to assist individuals with low incomes, who are unable to afford housing, in becoming homeowners. This is achieved through their monthly contribution of a portion of their salary to the scheme.
It is managed by the Federal Mortgage Bank of Nigeria (FMBN).
In this article, we will explore the eligibility requirements and how to apply for the National Housing Fund (NHF).
The National Housing Fund (NHF) Act 2004 allows all Nigerian income earners, including those in paid employment or self-employment, to register for the National Housing Fund (NHF) scheme as long as they are at least 21 years old and earn an annual salary of over N 3,000. According to the Act, eligible individuals must contribute about 2.5% of their basic monthly salary to the Fund through the Federal Mortgage Bank of Nigeria (FMBN) once registered.
Eligibility Criteria
In order to qualify for a National Housing Fund (NHF) loan, you must satisfy the following eligibility requirements:
Current Tax Clearance/Payment Slip: You will have to provide a PDF copy of your latest tax clearance certificate/payment slip as part of the required documents.
Means of Identification (National I.D, Drivers licenses, International passport, Voter’s Card): For identification purposes, upload a digital copy of your national ID card, driver's license, international passport, or voter's card. Accepted image formats are PNG and JPEG.
Public servants are required to submit their letter of first appointment and the gazette of confirmation of appointment.
Mortgage subscribers must provide a letter of recommendation from any primary mortgage bank, along with evidence of a 10% initial deposit
Document required to apply for National Housing Fund (NHF)
To apply for a National Housing Fund (NHF) loan, you will need to provide the following documents:
1. A completed application form.
2. Photocopies of title documents.
3. A current valuation report for the property you intend to purchase, or bills of quantities (BOQ) if you plan to build a house.
4. A valid tax clearance certificate for the last three years.
5. Evidence of your participation in the National Housing Fund (NHF) scheme.
6. Copies of your pay slips for the previous three months.
7. An equity contribution or personal stake of 30%, 20%, or 10%, depending on the amount of the loan you are applying for.
The interest rate applicable to the National Housing Fund (NHF) shall be in accordance with the provisions of the National Housing Fund Act, and shall not exceed an annual rate of 6%.
The maximum loan amount
Contributors can access up to N15 million.
Steps on how to apply for National Housing Fund (NHF)
To obtain the National Housing Fund (NHF) loan, follow these steps:
Find an accredited Mortgage Loan Originator (MLO)
Begin by locating an accredited Mortgage Loan Originator (MLO), which is also known as a Primary Mortgage Bank (PMB).
Obtain the Application Form
Application forms for the National Housing Fund (NHF) loans can be obtained from the MLO.
Fill out the Form
Fill out the application form with all the necessary information and ensure that you provide accurate details.
Submit all Required Documents
You will be informed of the necessary documents and procedures to follow. The PMB will forward your request to the Federal Mortgage Bank of Nigeria, and they will get back to you.
National Housing Fund (NHF) collateral
To obtain a loan from the National Housing Fund (NHF), the only required form of collateral is the property that will be purchased with the loan. No additional collateral is necessary to secure the loan.
National Housing Fund (NHF) Repayment
The repayment of the National Housing Fund (NHF) loan is structured to allow for a maximum repayment period of 30 years, with a highly affordable interest rate of 6%. Beneficiaries of the NHF housing loan are expected to make monthly installment payments using their income.
Benefits of National Housing Fund (NHF)
The National Housing Fund (NHF) offers various benefits to its participants, including:
1. Extended Repayment Period: The National Housing Fund (NHF) offers a long repayment period of up to 30 years, allowing individuals to pay back the loan at a comfortable pace.
2. High Borrowing Limit: Participants can borrow up to N15 million, enabling them to purchase or build their dream homes without financial constraints.
3. Additional Old-Age Security: Contributions made to the National Housing Fund (NHF) can serve as an additional form of old-age security, providing a safety net for retirement.
4. Comparable Loan Repayment: The repayment amount for NHF loans is similar to the typical monthly rent, making it an affordable option for homeownership.
5. High Percentage of Housing Loan: Participants can access a housing loan of up to 90% of the cost of the house, easing the financial burden of homeownership.
6. Fixed Interest Rate: The interest rate for the National Housing Fund (NHF) loans remains fixed throughout the life of the mortgage at 6% per annum, providing stability and predictability for borrowers.
7. Refunds with Interest: Upon retirement, contributors receive a refund of their contributions with an additional 2% interest, ensuring that their investment in the National Housing Fund (NHF) is profitable.
8. Personalized Record Keeping: Every contributor is issued a lifetime registration number, a passbook for personal recording of contributions, and an account statement, enabling easy record-keeping and management of their National Housing Fund (NHF) account.
In conclusion, the National Housing Fund (NHF) is a commendable initiative of the Federal Government of Nigeria aimed at assisting eligible citizens in addressing their housing needs. With a low-interest rate of 6%, long repayment period of up to 30 years, and a borrowing limit of up to N15 million, the National Housing Fund (NHF) provides a viable option for homeownership for individuals with low incomes. The eligibility requirements are straightforward, and the application process is easy to follow. Moreover, the NHF offers additional benefits such as old-age security, personalized record-keeping, and refunds with interest. We encourage eligible citizens to take advantage of this opportunity and apply for the National Housing Fund (NHF) to become homeowners and secure their future.
