National Housing Fund (NHF) established by the NHF Act of 1992 is a Federal Government scheme, which entitles all Nigerians above the age of 21 years in paid employment to a government funded loan with low interest. The National Housing Fund was created by the Federal Government to cater for the housing needs of the Nigerian citizenry.

Employees under the scheme contribute 2.5% of their monthly salary to the fund through Federal Mortgage Bank of Nigeria. The maximum amount accessible under the NHF is N15 million, and this includes an equity contribution or personal stake of 30%, 20% or 10% depending on the loan amount applied for. The borrowed capital is repayable over a maximum of 30 years at the rate of 6% interest.


To be eligible to apply for the fund, an employee must have been a contributor to the NHF for a period of not less than six months. For individual borrowers, there must be satisfactory evidence of regular income to guarantee loan repayment. This condition is easy to ascertain for applicants in paid/salary employment, but for the people in private businesses, their bank statements of account must show regular income.

Such contributor is required to apply through any registered and duly accredited Primary Mortgage Bank (PMB) or Primary Mortgage Institution (PMI), who will forward the application to the Federal Mortgage Bank of Nigeria (FMBN). Necessary documents required for this purpose include:

  1. Completed application forms
  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 (3) years tax clearance certificate
  5. Evidence of NHF participation
  6. Copy of pay slips for the previous three months

The loan must be used for building, purchasing or renovating residential accommodation. No loan shall be for refinancing.

Only institutional borrowers who can apply for the loan directly from Federal Mortgage Bank of Nigeria (FMBN), individuals can only apply through a duly licensed and accredited Primary Mortgage Institution (PMI) of their choice.

The property for which the loan is sought serves as security for the loan. Hence, property must have valid title documents; must conform to the existing planning laws and regulations and building plans approved by the appropriate authorities and; must possess sufficient value to recover the loan. The mortgage property must be insured against hazards by the applicant, that is, Fire Insurance, Mortgage Protection Policy, e.t.c.


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