How to get start with National Housing Fund

How to get start with National Housing Fund “NHF /Federal Mortgage

Last Updated on January 8, 2024 by admin

Are you looking at getting that dream house and you are looking at how to get the funds? The Nigerian government has unveiled how citizens can own a house without stress. All they need is a National Housing Fund that will allow them to own that dream home.

The National Housing Fund (NHF) was established by Act 3 of 1992 with the aim of Mobilization of funds for the provision of affordable residential houses for Nigerians. Also funds shall be contributed by Mandatory contribution of 2.5% of monthly income of Nigerians earning =N=3000 and above per annum.

This shall be contributed through Federal Mortgage Bank of Nigeria and you shall be above the age of 21years in paid employment to a low interest, government funded loan particularly those within the low and medium-income levels who cannot afford commercial housing loans e.g. civil servants, traders, artisans, commercial drivers, etc

Any intending beneficiary must be a registered contributor and up to date with his/her contributions. The pool of funds created by the contributors nationwide becomes available to any contributor to borrow from, after contributing for a minimum of six months.

Individuals can only apply through a duly licensed and accredited Primary Mortgage Institution (PMI) of their choice and not directly to the FMBN. Loan who packages and forwards the application to FMBN. A contributor is eligible to access a maximum loan amount of =N=15 million repayable over a maximum period of 30 years at an affordable interest rate of 6%.

What are the documents required when applying for the loan?

Documents required to process a loan include:
1.Completed application form.
2.Photocopy of title documents
3.Current valuation report on the proposed house to buy or bills of quantities (BOQ) for the house to build.
4.Three years tax clearance certificate.
5.Evidence of NHF participation
6.Copy of pay-slips for the previous three months.
7.Equity contribution or personal stake depending on the loan amount applied for.


How can a contributor retrieve his/her NHF participation number?

If you have previously registered or updated your Mobile Number with FMBN, you can retrieve your NHF Number while on the go.

To commence, follow the following steps:
– Dial *219# USSD code and Send
– Type 3 and Send
– Your NHF number will be displayed.



1. Registration via NHF 1 (employer) and NHF 2 (employee) forms.
2. Deducted monthly contributions remitted to FMBN promptly (At least 6 months contributions should be made)
3.Passbook to be updated by an employer and is transferable from one employment to the other.
4.Yearly statement of cumulative contributions plus accrued interest
5.Apply through any accredited Primary Mortgage Bank(PMB)
6.Applicant must provide satisfactory evidence of regular income.


How does a contributor obtain an NHF loan?

A contributor interested in obtaining an NHF loan applies through a registered and duly accredited mortgage loan originator (e.g. Primary Mortgage Banks), who packages and forwards the application to FMBN.


What is security for the NHF Loan

The only collateral is the property to secure the loan for. No other collateral is needed for the loan. The  R-of-O can be used as a title document on the condition that the owner will submit evidence of processing the Certificate of Occupancy (C-of-O) and the undertaking that the C-of-O will be deposited in the Bank when it is obtained.

The mortgage property must be insured against hazards. Applicant must accept to take up both “Fire Insurance Policy” and “Mortgage Protection Policy”. The loan shall be secured by first legal mortgage between the applicant and the PMI.


1.Housing loan of up to 90% of the cost of the house.
2.Interest on loans remains fixed throughout the life of the mortgage at 6% p.a.
3.Long period of repayment of up to 30 years.
4.Contributions can serve as additional old age security.
5.Up to N15 million can be borrowed.
5.Refunds with 2% interest on retirement.
6.Loan repayment is about the same as a typical monthly rent.
7.Every contributor has: a lifetime registration number, a passbook for personal recording of contributions and the account statement.


To get started with the National Housing Fund (NHF), you will need to follow these steps:

1. Understand the National Housing Fund: Familiarize yourself with the purpose and benefits of the National Housing Fund. The NHF is a scheme created by the Federal Government of Nigeria to provide affordable housing finance to Nigerian workers.

2. Determine eligibility: Check if you meet the eligibility criteria for the NHF. Generally, employees in the public and private sectors who contribute a specified amount to the scheme are eligible. Self-employed individuals can also participate by making voluntary contributions.

3. Register with the NHF: Visit the National Housing Fund office or the Federal Mortgage Bank of Nigeria (FMBN) to register. You will need to provide your personal information, employment details, and complete the necessary registration forms.

4. Open an NHF account: Once registered, you will need to open an NHF account with the FMBN. This account will serve as a repository for your contributions to the scheme.

5. Start contributing: Begin making regular contributions to the NHF from your salary or directly as a self-employed individual. The contribution amount is usually 2.5% of your monthly income if you are in the formal sector.

6. Accumulate funds: As you continue to contribute to the NHF, your funds will accumulate over time. These funds will be used to provide affordable housing loans or finance housing development projects.

7. Apply for an NHF loan: Once you have contributed for a specified period (usually six months), you can apply for an NHF loan. The loan terms and conditions will vary, but they are generally at favorable interest rates and with longer repayment periods compared to commercial loans.

8. Provide necessary documentation: Prepare the necessary documentation required for the loan application, including proof of income, employment confirmation, title documents, and other supporting documents as specified by the NHF.

9. Loan approval and disbursement: After submitting your loan application, the NHF will evaluate your eligibility and the documentation provided. If approved, the loan will be disbursed to you or directly to the developer/seller, depending on the loan purpose.

10. Repay the loan: Once you receive the loan, ensure to make timely repayments as per the agreed terms to avoid penalties and maintain a good credit standing.

Remember to consult with the National Housing Fund or the Federal Mortgage Bank of Nigeria for accurate and up-to-date information on the specific requirements and processes involved in participating in the NHF.

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