FG housing loan: How Nigerians can get up to ₦50m at 6% to build or buy a house

• Eligible Nigerians can get up to ₦50 million at 6% interest through the National Housing Fund, with up to 30 years to repay. 

• But ₦50 million is the maximum, not what everyone automatically gets. The amount you qualify for depends on your income, affordability and other requirements.

• You can register, check your NHF contributions, test your affordability and start your application through FMBN’s online platform. 

Nigerians looking to own a home can access a Federal Government-backed mortgage facility offering up to ₦50 million at 6% interest, with a repayment period of up to 30 years.

The facility is the National Housing Fund (NHF) Mortgage Loan, administered by the Federal Mortgage Bank of Nigeria (FMBN). It can be used to build a home, buy a residential property, improve an existing home, or renovate a home

The ₦50 million ceiling is an important recent development. FMBN previously operated with a lower maximum loan limit, but its current NHF Mortgage Loan information now states that qualified contributors can access up to ₦50 million.

However, the amount is a maximum limit, not an automatic payment. How much an applicant can actually obtain depends on factors including income, affordability, the property and the terms of the mortgage.

Here is how the scheme works and how Nigerians can apply.

RELATED: Tinubu approves ₦10 billion housing loan for civil servants, here’s how to be a beneficiary

The NHF Mortgage Loan is not restricted to Federal Government workers.

The scheme is designed for eligible Nigerians who participate in the National Housing Fund. A contributor can apply after making six months of continuous contributions. 

The scheme therefore potentially covers workers and other eligible contributors in different sectors, rather than only civil servants.

Also, being an NHF contributor does not automatically guarantee approval. Applicants must still satisfy the mortgage lender's affordability and property requirements.

FMBN's online system includes an affordability assessment, while the Federal Ministry of Housing and Urban Development's Renewed Hope Housing portal also provides a calculator that allows prospective borrowers to estimate what their income can support.

The application process can be started online through FMBN's system, although the mortgage itself is processed through the approved channels.

ALSO READ: FG’s proposed ₦5,000 housing contribution: Who may qualify and what must happen before applications open

If you are not already registered, create an individual contributor account through FMBN's Internet Banking platform: https://ibank.fmbn.gov.ng/ .

The current FMBN instructions require prospective individual contributors to select Individual Contributor, provide an email address and phone number, enter their BVN, select their employment type and complete the registration details.

Once approved, the applicant receives an NHF account number. 

Existing contributors can activate their accounts and view their contribution records.

Before applying for the mortgage, check that your NHF contributions have been properly recorded and that you have met the six-month continuous contribution requirement.

FMBN's portal provides a Contribution History function for contributors to review payments made by themselves or their employers. 

This is one of the most important steps.

Do not start with the assumption that you can borrow ₦50 million simply because that is the maximum advertised by FMBN.

Use FMBN's affordability assessment or the Renewed Hope Housing portal's calculator to estimate the loan and property value your income can support. The government portal allows users to enter financial information and compare housing options. 

FMBN's Internet Banking instructions state that contributors can select Loans, choose Initiate Loan, select the loan type, complete the application, attach the required documents and conduct an affordability test before submitting the request for processing. 

For applicants using a Primary Mortgage Bank, the mortgage institution will guide the borrower through the relevant documentation and processing requirements.

Because the property secures the mortgage, applicants must provide documents proving ownership or the legal basis for the transaction, as well as other documents required for the particular project.

Anyone building a house should have the relevant land and development documentation ready, while someone purchasing a completed property will need documentation relating to the property being bought.

READ NEXT: FG opens applications for laptop and smartphone loans — see full list of requirements

The NHF mortgage and the Federal Government's Renewed Hope Housing programme are separate entities.

The official Renewed Hope Housing portal currently lists government-backed homes across the country and offers payment options that include NHF loans at 6% and FMBN's Rent-to-Own scheme. 

The portal also allows prospective buyers to search available properties and use an affordability calculator before applying.

This gives Nigerians interested in government-backed housing another route to explore, particularly those looking to buy a property rather than independently finance construction.

The FG-backed housing loan is not a cash grant. It is a mortgage that must be repaid.

The key facts are:

• Maximum loan: ₦50 million

• Interest rate: 6%

• Maximum tenor: 30 years

• Minimum contribution period: Six months of continuous NHF contributions

• Purpose: Build, buy, improve or renovate a home

• Application: Through FMBN's approved mortgage channels

For prospective homeowners, the best starting point is to confirm your NHF contribution status, calculate what you can afford and then begin the application through FMBN's official system or an accredited mortgage institution.