- What is the NHF Scheme
This is a trust fund that allows Nigerians with a stable source of income to access a mortgage loan from the Federal Mortgage Bank of Nigeria through a PMI (Primary Mortgage Bank) like Safetrust Mortgage Bank Limited.
- Is participation in the NHF scheme compulsory ?
Yes. The NHF Act No. 2 of 1992 stipulates that a Nigerian earning the minimum national wage and above per annum in either the public or private sectors of the economy shall contribute 2.5% of his monthly salary to the fund.
- How much is a contributor required to contribute to the NHF Scheme ?
A participant in the scheme contributes only 2.5% of his/her monthly basic salary to the fund.
- How does one make contributions ?
The employer is required to deduct 2.5% from the monthly basic salaries of workers and remit it to the Federal Mortgage Bank of Nigeria (FMBN) within one month of deduction. Self-employed individuals are to pay their contribution directly to PMI. All the payment are duly receipted.
- How do I know the status of my contributions to the fund ?
The FMBN as manager of the NHF also provides annual statements of account to contributors to the fund.
Individual contributors have passbooks issued by FMBN, which are updated by respective employers after every deduction.
The passbook is proof of participation and shows the level of contribution to the scheme. - Who can benefit from the scheme ?
The NHF scheme is for Persons/workers and self-employed in different sectors of the economy. It is particularly for the benefit of medium-income earners who cannot afford commercial housing loans e.g civil servants, traders, artisans, commercial drivers e.t.c.
- How can only 2.5% of my monthly salary or income be sufficient amount as loan to build house ?
The NHF scheme is for Persons/workers and self-employed in different sectors of the economy. It is particularly for the benefit of medium-income earners who cannot afford commercial housing loans e.g civil servants, traders, artisans, commercial drivers e.t.c.
- How does a contributor obtain the NHF loan ?
A contributor interested in obtaining the NHF loan applies through a duly accredited primary mortgage institution (PMI). The PMI packages and forwards the application to the FMBN . Application are therefore, not received directly from applicants by FMBN but through PMI. Safetrust Mortgage Bank Ltd. is an example of a PMI.
- How long does one need to contribute before enjoying a loan facility ?
A contributor is eligible to apply for the NHF loan after six months of continuous contributions
- What are the conditions and documents required to obtain the loan ?
i) A contributor becomes eligible to apply for a housing loan after six(6) months of continuos contribution to the fund.
ii) Documents required to process a loan include
- (a) Completed application form
- (b) Photocopy of little documents
- (c) Current valuation report on the proposed security
- (d) 3 years tax clearance
- (e) Evidence of the NHF participation
- (f) Copy of recent pay slips for the previous three months
- (g) 10% personal stake (contribution of 10% to the cost of the house)
- What is the mode of repayment of the NHF loans ?
The NHF housing loans are repaid through monthly instalmental payment from the pay income of the beneficiary, just like monthly rent. This mode of payment has the advantages of being both affordable and convenient.
- Can a contributor obtain the NHF loan if a primary mortgage institution (PMI) is not in his/her state ?
Yes. A prospective applicant can liaise with the PMI in a neighboring state or anywhere in Nigeria to process a loan application. Also, some PMIs are subsidiaries of commercial bank and the local branch of such bank may operate a desk on behalf of its subsidiary PMI.