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How to access the National Housing Fund (NHF) Loan


  • Any Nigerian above the age of 18
  • The applicant must be a contributor to the National Housing Fund for a minimum period of six months.
  • The applicant must have satisfactory evidence of a regular flow of income to guarantee loan repayment.


  • The loan shall be for the purpose of building, purchasing or renovating a residential accommodation
  • No loan shall be for refinancing


The applicant is to apply through a duly licensed and accredited mortgage loan originator (MLO) of his/her choice and not directly to the Federal Mortgage Bank of Nigeria (FMBN).

The MLO of the applicant’s choice must be accredited by FMBN to access the NHF facility. Application forms for NHF loans are obtainable from the MLO


  • The property for which the loan is sought shall serve as security for the loan.
  • The property shall conform to the existing planning laws and regulations (approved building plan).
  • The property shall possess sufficient value to recover the loan.
  • A mortgaged property shall be insured against hazards
  • The loan shall be secured by the first legal mortgage of the property between the applicant and the mortgage loan originator and assigned to FMBN.


  • Open a savings account with a registered PMB
  • Contribution to the fund for at least six months prior to application.
  • Have satisfactory evidence of the regular flow of income to guarantee the loan.
  • Submit photocopies of valid title documents (e.g. C of O).
  • Approved survey/site plans
  • Approved building plans
  • Priced Bill of Quantities where applicable
  •  Valuation report prepared by a firm of registered surveyors and valuers where applicable
  • Three years tax clearance certificate
  • Letter of consent to mortgage to your chosen PMB
  • Completed prescribed mortgage loan application form
  • Evidence of NHF participation
  • Copy of payslips for the previous three months
  • Equity contribution of personal stake of 30 percent, 20 percent or 10 percent depending on the loan amount applied for loans of N15 million, N10 million and N5 million respectively
  • Offer letter/Acceptance and Allocation letter (in case of government projects)
  • In the case of a registered self-employed applicant, a copy of Articles and Memorandum of Association and a copy of Certificate of Incorporation as evidence of employment status must be submitted.


  • A borrower is entitled to a maximum loan of fifteen million nairas (N15, 000,000.00) or as determined by the Bank.
  • No individual should be given a loan in excess of 90% of the cost or value of the property to be mortgaged.

Equity contribution based on the new loan amounts is as follows:

  • N15,000,000.00 – 30%
  • N10,000,000.00 – 20%
  • N5,000,000.00 – 10%


The interest rate shall be as prescribed by the National Housing Fund Act which is not more than 6% p.a.

The maximum repayment period shall be 30 years. The individual borrower shall make repayment through the mortgage loan originator through which they obtained the loan.

Mortgage Refinancing and its Benefits

1000 and 500 naira denomination notes

Refinancing your mortgage can help you save money (or at least lower your payments), but sometimes it’s just an expensive mistake. If you’re considering refinancing, study up before you pull the trigger.

What is Mortgage Refinancing?

A refinancing transaction happens when you swap out an old loan for a new (ideally better) one. Your new loan pays off the old one, and you start making payments to the new lender.

Benefits of Refinancing

A new, properly structured loan can improve your financial situation. In particular, you can:

  • Lower your monthly payment
  • Lower lifetime interest costs
  • Reduce risk, if you have an adjustable-rate mortgage
  • Get cash out for other purposes
  • Consolidate debt and possibly get tax benefits

Costs to Refinance

Of course, mortgage refinancing is not free. You’ll pay fees to your new lender to compensate them for offering the loan. You may also pay for legal documents and filings, credit checks, appraisals, and more.

Even if a loan is advertised as a “no closing cost” loan, you’re paying those fees (even if you don’t notice them). Generally, this happens through a higher interest rate.

Does Refinancing Make Sense?

You need to weigh the pros and cons of your old loan and a new loan to decide. In general, mortgage refinancing is a good move when you can save money by locking in a lower interest rate or payment, shorten your loan term, or restructure debt optimally.

Once you understand the costs, evaluate how much you’ll save over time and how long it will take to recoup any up-front costs associated with mortgage refinancing. Will you keep the loan (or live in the home) long enough to make it worthwhile?

One way to look at this is with a basic break-even analysis – when will you come out ahead? But there is a lot more to consider.

When It’s a Good Idea

Mortgage refinancing is a good idea when you’ll truly benefit from a new loan. Some clues that it might be a good idea are:

  • Interest rates are low
  • Your credit has improved since you got your first loan
  • You will keep the loan for a long time
  • You can avoid getting stung by a high-risk mortgage
  • You can get an amortizing loan instead of an interest-only loan

When It’s a Bad Idea

You should avoid refinancing your mortgage if you’ll waste money and increase risk. Sometimes having a lower interest rate and monthly payment can cost more in the long run – even if they help you today. You also need to be sure you can recoup all the fees before you pull the trigger.