By CHRIS EGBU CMC, MBA, MIMC, MITD, FCA

Director General (Association of Pension Desk Practitioners of Nigeria)

Another way to raise money to complete your building or buy a house easily is through the Federal Mortgage Bank of Nigeria (FMBN). Some people do not know that Federal Mortgage Banks gives loans up to ₦5,000,000 (Five Million Naira) to individuals, and what is the qualification? They are three basic things:

• You must have a regular source of income,

• You must be contributing to the National Housing Fund, and

• You must have a land or a valid title document

When once you meet these three criteria you are qualified for the loan. You can approach any primary Mortgage bank to assist you package the loan.

What is the re-payment plan? The requirement is that you repay the loan between five years to thirty years depending on your age at the time of borrowing. The interest rate is 6% and we have a lot of people benefiting from it. But how will you get it when you don't ask. When you apply and obtain the loan then you see that you can own a house before you know it.

Requirements of National Housing Trust Fund (NHTF)

Mandatory contribution to the fund(2.5 percent of basic salary for a minimum period of six months)

Nigerian citizenship for all applicants for loans under the NTHF

An account operated with a primary Mortgage bank

Savings of at least 10% of the cost of the desired house to purchase, or in the case of construction, investment of at least 10% as a personal stake

Maximum repayment period of 30 years subject to the current age and level of income of the applicant.

NHTF loan application, which must be made on a prescribed form. The form is available in all Primary mortgage institutions nation wide.

Relevant documents to the property being constructed, renovated or purchased

How to Apply

The applicant for National Housing fund:

Be an account holder with Primary Mortgage house

Obtain the prescribed NHTF application form which must be duly completed and supported with the following :

(A) TO BUY A HOUSE (with NHTF loan)

Clear photocopy of valid Title Documents (Certificate of Occupancy)

Deed of lease/sub-lease, Deed of Assignment, or letter of allocation if it is a government project,

Copy of offer letter/Allocation letter,

Evidence of NHTF contribution,

Evidence of income, eg, Pay – slip,

Photocopy of 3 years Tax clearance certificates.

(B) TO BUILD A HOUSE (with NHTF loan)

• Photocopy of 3 years Tax Clearance Certificates,

• Bill of Quantities

• Photocopy of valid title document,

• Evidence of income, eg, Pay – slip,

• Approved Building plan

• Evidence of NHTF contribution

TO RENOVATE A HOUSE (with NHTF loan)

• Photocopy of 3 years Tax Clearance Certificates,

• Photocopy of valid title document,

• Bill of Quantities

• Evidence of income, eg, Pay – slip,

• Evidence of NHTF contribution,

Clued from Newways of Employee Empowerment By Chris Egbu