National Housing Fund (NHF) Scheme................ Get Informed

Refuge NHF Home Ownership Scheme

This scheme is powered by the National Housing Fund and administered by the Federal Mortgage Bank of Nigeria [FMBN] through a Primary Mortgage Institution like Refuge Homes Savings & Loans Ltd. The aim is to provide affordable housing to the teething number of Nigerian workers who would otherwise not have access to mortgage finance at such affordable rate and long, convenient tenor such as the one offered through this scheme . The loans are specifically meant for the participating members of the scheme who contribute to the National Housing Fund (NHF). That is, anyone who is a regular contributor and has contributed for a minimum period of 6 [six] months is eligible to apply for the loan. The contribution is usually deducted at salary source by the human resources of the organizations where the applicant works. And, the NHF act of 1992 makes this makes this contribution compulsory, while offering the contributors the opportunity to enjoy the numerous benefits of the scheme

The general qualifying criteria for all applicants is as follows:

1. applicants must be above 18 years of age
2. applicant must be a contributor to the National Housing Fund for a minimum of 6 [six months]
3. the applicant contributes only 2.5% of his/her monthly basic salary or pay to the fund.
4. Applicant must have satisfactory evidence of regular flow of income to guarantee loan repayment.
5. The loan shall be for the purpose of building, purchasing, or renovating a residential accommodation.
6. The loan shall not be used to refinance any residential property.
7. Applications must be made through a Mortgage Loan Originator, [MLO] like Refuge Homes Savings & Loans Ltd. and not directly to Federal Mortgage Bank of Nigeria [FMBN]
8. Applicants forms for NHF loans are obtainable from Refuge Homes Savings & Loans
9. the property for which loan is sought to finance shall serve as security for the loan
10. the property must have a valid title document [C of O]
11. the property shall conform to the existing planning laws and regulations [approved building plan]
12. the property shall possess sufficient value to recover the loan
13. the property shall be insured against all hazards
14. the loan shall be secured by first party legal mortgage on the property between the applicant and Refuge Homes Savings & Loans Ltd. and assigned to FMBN.
15. Each applicant shall be entitled to a maximum loan amount of N15,000,000.00 [Fifteen Million Naira Only] or as determined by the bank
16. no individual shall be given a loan in excess of 90% of the cost or value of the property to be mortgaged.
17. the loan amount an applicant is eligible for is calculated on the basis that he/she does not utilize more than one-third [1/3] of gross monthly pay to service the loan.

1. Equity contribution shall be as below:

Loan Amount N	Equity Contribution	Amount N
10.1M-15M	30%	3,030,000-4,500,000
5.1M-10M	20%	1,020,000-2,000,000
1M-5M	10%	100,000-500,000

19. Interest rate shall be as prescribed by the National Housing Fund Act which is not more than 6% per annum, and shall be fixed throughout tenor
18. the maximum repayment period shall be 30 years [but shall not exceed the
applicant’s 60^th year.
19. the individual borrower shall make repayment through the mortgage loan
originator [Refuge Home Savings & Loans Ltd in this case]






HOW NHF WORKS

STEP 1

NHF
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Savings Acc with FMBN Savings Acc with Mortgage Bank
2.5% of basic salary or N3,000 monthly Save 10% of N1m-N5m,
20% of N5-N10m,30% of N10m-N15m

Note: 6 months savings requirement for the 2 accounts
Interest rate

STEP 2 Purpose of the loan-usage:

(A) To develop a house
(B) To complete a house
(C) To renovated a house
(D) To buy a house.


STEP 3

(A) Title
(B) Drawings
(C) Approvals
(D) Bill of Quantity ( Boq)
(E) Valuation report


STEP 4

(A) What location is the Customer interested in?
(B) What is the Customer’s Budget-how much to borrow
(C) What house type is the Customer willing to renovate, buy or develop?










Note:
Find attached other requirements from the FMBN



NHF Requirements for Individuals

The individuals will be required to submit the under listed documents or note the following:
=Open 2 accounts- one with FMBN & another with a Mortgage bank:

1. Application form issued by the accredited PMI, with two (2) passport photographs, completed to provide the following information, among others-

· Name of applicant,
· NHF Participation Numbers,
· Age,
· Salary,
· Description of property,
· Loan amount required for purchase, construction, renovation, etc. of the property to be mortgaged.

1. Title documents of property, i.e. Certificate of Occupancy (C of O), deed of sublease, or any other registrable land title document.

1. Photocopy of Search Report on title.

4. Approved Building plan.

5. Valuation Report from a registered Estate Valuer.

6. Certified Priced Bill of Quantities (BOQ) in case of new construction.

1. Applicant must be a contributor to the National Housing Fund for a

minimum period of six months.

1. Payment of N1,000.00 (one thousand naira only) processing fee per individual applicant.

1. Payment of N50,000.00 (Fifty thousand naira only) legal search fee per individual applicant.

1. On approval, payment of 0.25% of the approved loan amount as service charge.

1. Birth certificate

1. Tax Clearance

Oladapo Akanbi
Head, Relationship Management | Refuge Home Savings and Loans Ltd | 66, Opebi Road, Lagos
08120160199, 07056124139 | [email protected] | www.refugebank.com.ng