Homeownership is a fundamental aspect of human life, providing not only shelter but also a sense of stability and security. In Nigeria, the quest for affordable housing remains a pressing issue, with many citizens aspiring to own their own homes but finding it difficult due to financial constraints. This is where the Federal Mortgage Bank of Nigeria (FMBN) plays an important role.

However, despite the FMBN’s efforts to ease the process of obtaining a mortgage, there is still a significant gap in awareness and understanding among Nigerians about how to access these loans. Many potential homeowners need to be made aware of the eligibility requirements, the application process, and the benefits that come with securing an FMBN loan.

This article addresses this gap by providing a comprehensive guide on how to access federal mortgage loans in Nigeria. 

What You’ll Learn

You will gain insights and practical knowledge on how to successfully obtain a loan from the Federal Mortgage Bank of Nigeria (FMBN). By the end of your reading, you will have learned about:

  • What FMBN and NHF are
  • Eligibility requirements for an FMBN loan
  • Step-by-step application process for obtaining a loan
  • Required Documentation
  • Benefits and regulations of FMBN loans

What is FMBN?

The Federal Mortgage Bank of Nigeria (FMBN) is really important for helping people in Nigeria buy homes. It started back in 1956, and in 1994, it became the top mortgage bank in the country. Since then, it’s been focused on giving Nigerians loans they can trust and afford to buy homes. Its main goal is to make it easier for Nigerians to get loans for buying homes, so more people can become homeowners.

FMBN runs something called the National Housing Fund (NHF). It’s like a savings plan where people put aside a small part of their monthly income, about 2.5%. This money is collected to help provide low-interest loans to those who want to buy houses. So, when people contribute to NHF, they’re helping to fund housing projects all over Nigeria.

FMBN does more than just give out loans. They also help create and improve mortgage institutions at different levels, encourage investment in housing, and make sure that housing finance rules help low and middle-income Nigerians buy homes more easily. FMBN helps people buy homes by running the National Housing Fund (NHF) and offering different types of loans. They have loans for renovating homes and schemes where you can rent before owning. FMBN aims to make buying a home easier and more affordable for everyone in Nigeria. They’re a big part of the plan to make sure everyone has a good and cheap place to live.

Eligibility Requirements

  • You must be a citizen of Nigeria.
  • You need to be at least 18 years old.
  • You should have contributed to the National Housing Fund (NHF) for at least six months.
  • You must show that you have a stable source of income.

Application Process

The application process for getting a loan from FMBN varies depending on whether you’re an individual or part of an institution:

For Individual Borrowers:

  • Apply through a Primary Mortgage Bank (PMB): Start by submitting your loan application through a licensed PMB.
  • Ensure PMB registration: Make sure that the PMB you choose is registered with FMBN, as they are the ones who handle the application process.

For Institutional Borrowers:

  • Direct application through FMBN: Institutional borrowers, such as organizations or companies, can apply directly to FMBN without going through a PMB.

Required Documentation

To apply for a loan from FMBN, you’ll need to gather some important documents. Here’s what you’ll need:

  • Completed application form: Fill out the loan application form with accurate information.
  • Duplicated title documents: Provide copies of the title documents for the property you’re financing or purchasing.
  • Bills of quantities or current market value report: Include estimates of construction costs or the current market value of the property.
  • Three years tax clearance certificate: Obtain a tax clearance certificate covering the past three years to verify your tax compliance.
  • Proof of NHF participation: Show evidence of your participation in the National Housing Fund by providing relevant documents.
  • Latest three months’ pay stubs: Submit copies of your pay stubs from the past three months to demonstrate your income stability.
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Registration Process For NHF

The registration process for the National Housing Fund (NHF) involves several steps that both employers and employees need to follow. It starts with employers receiving an Employer Registration Form (NHF1) from the Federal Mortgage Bank of Nigeria (FMBN). Once they fill out this form, providing the necessary details, they submit it to the nearest FMBN branch office. Upon submission, employers receive an employer registration number, marking their official registration with FMBN.

For employees, the process begins when employers provide them with NHF2 forms, which they need to fill out with their personal information. Alternatively, self-employed individuals can obtain NHF2 forms directly from FMBN. After completing the NHF2 forms, employees submit them to their employers or directly to FMBN. Once FMBN receives these forms, they register each employee, assigning them a participation number for the NHF.

The contribution process starts after registration. Employers are responsible for deducting 2.5% of their employees’ basic salary or income at the source. These deductions are recorded in a passbook provided by FMBN to each registered employee. Employers maintain these passbooks, documenting the monthly deductions made from employees’ salaries. Meanwhile, self-employed individuals remit their monthly contributions directly to FMBN.

FMBN processes the contributions received from both employers and self-employed individuals, ensuring accurate recording and maintenance of passbooks. Employers submit contribution details to FMBN along with a payment schedule, detailing each employee’s contribution amount and coverage period. FMBN provides payment receipts for these contributions, ensuring transparency and accountability in the process.

Frequently Asked Questions (FAQs)

Here are some common questions about Federal Mortgage Loans in Nigeria:

Who Is Eligible For The NHF Loan?

To qualify for the NHF loan, an individual must meet certain criteria. Firstly, the applicant must be at least 18 years old. Additionally, they must have contributed to the National Housing Fund (NHF) for a minimum period of six (6) months. Furthermore, the applicant must demonstrate evidence of a stable and consistent income flow to ensure they can repay the loan satisfactorily.

How Much Can I Get From NHF?

Individuals eligible for an NHF loan can receive up to N15,000,000, repayable over a maximum period of 30 years. 

What Is The Interest Rate For NHF Loans?

Interest on NHF loans remains fixed throughout the life of the mortgage at 6% per annum. The loans offer a long repayment period of up to 30 years.


Obtaining a home through the Federal Mortgage Bank of Nigeria (FMBN) is a valuable opportunity for Nigerian citizens looking for affordable housing solutions. The FMBN, with its long-standing history and mission, aims to make homeownership accessible to more people through its various loan programs. By understanding the eligibility requirements, the application process, and the necessary documentation, you can take advantage of these opportunities.

FMBN loans offer numerous benefits, such as low interest rates, long repayment terms, and the ability to borrow up to 90% of the property value. These loans are designed to help both individuals and institutions achieve their housing goals, making it easier for many Nigerians to own their own homes.