More people need to discover how to get a housing loan in Nigeria to reduce the housing shortages in the country. Unfortunately, commercial banks do not offer cheap loans in Nigeria. Their loan can burn your fingers and leave you in a financial mess for the rest of your life. That’s why you should consider the Federal housing loan alternative.

Although there are several types of housing finance in Nigeria, the Federal housing loan stands out because of its long tenor and low-interest rate.

So, let’s get down to business and discuss how you can get a housing loan in Nigeria without any hassle.

Types of Housing Finance in Nigeria

Before we delve into how anyone (including you) can get a housing loan in Nigeria, let’s first talk about the various types of housing finance accessible in the country. Nigerians willing to finance their housing need with a loan can get a/an:

  • Commercial or merchant bank housing finance,
  • Insurance company housing finance,
  • State housing corporation loan,
  • The Federal Mortgage Bank of Nigeria (FMBN) loan.

Federal Mortgage Bank Loan

The Federal Mortgage Bank of Nigeria is the organization that oversees the nation’s National Housing Fund (NHF). The National Housing Fund is a contributory scheme where Nigerians can save for their housing needs irrespective of the sector they are working in.

The joint saving system makes available a pool of resources eligible participants can borrow to build their houses with a guarantee that the participants will remit 2.5% of their monthly salary to the Federal Mortgage Bank of Nigeria through their primary mortgage banks.

Participants can apply for N15,000,000 or 90% of the property price they want to buy or build, whichever is less. Participants can’t apply for more than 90% of the property price.

If the property is worth N10,000,000, participants can’t apply for more than N9,000,000 which is 90% of the property value.

The loan is for the construction, purchase, or renovation of residential property.

Thus, the Federal Mortgage loan or the federal housing loan in Nigeria are used interchangeably to mean the same thing and are under the National Housing Fund in the country.

How to Get Federal Housing Loan in Nigeria

Participants can apply for a federal mortgage loan by following the following steps:

They must apply through a recognized and accredited primary mortgage institution rather than directly to the Federal Mortgage Bank of Nigeria.

The participant’s primary mortgage institution must be approved by the Federal Mortgage Bank of Nigeria and the Centre Bank of Nigeria.

Your primary mortgage institution will provide you and your employer with NHF loan application forms. While your employer will fill and return the NHF 1 form, you will do the same for NHF 2.

Institutions can apply for the loan directly through the Federal Mortgage Bank of Nigeria. Self-employed and institutions will submit a copy of their firms’ legal documents to get the loan.

Federal Housing Loan You Can Choose From

There are 6 types of loans granted by the Federal Mortgage Bank of Nigeria. Among them, only 4 apply to individuals. See them below:

Rent-To-Own Housing Scheme

The Rent-To-Own Housing Scheme allows a Nigerian worker to move into an apartment owned by the Federal Mortgage Bank of Nigeria, pay rent for about 30 years and take over ownership of the house. What a great offer!

FMBN Home Renovation Loan

Federal Mortgage Bank of Nigeria (FMBN) Home Renovation Loan provides loan facilities to an existing homeowner to improve or upgrade his house.

FMBN Construction Loan

This is a loan the Federal Mortgage Bank of Nigeria gives to NHF participants to construct their own homes instead of buying an already built one.

Diaspora NHF Mortgage Loan

The Diaspora NHF Mortgage Loan is a federal housing scheme available to Nigerians living abroad to participate in the NHF and access a housing loan to build or buy a home in Nigeria.

Federal Housing Loan Eligibility

Anyone intending to get a federal housing loan in Nigeria must meet certain criteria. The criteria discussed below are part of the housing loan eligibility in Nigeria:

  • Participants must be Nigerians
  • They must not be less than 18 years of age.
  • All participants must show proof of a consistent source of income.
  • They must have contributed to the National Housing Fund for 6 months or more.

Housing Loan Interest Rate and Tenor

The federal housing loan interest rate stipulated by the National Housing Fund Act is 6%.

The loan and interest shall be repaid to the bank through the participants’ primary mortgage bank within 30 years.

Benefits of the Federal Mortgage Bank Loan

The benefits of obtaining a federal mortgage bank loan cannot be overemphasized. It is a cheap loan you can use to finance up to 90% of your housing need and payback within a long period of time.

It is even more welcoming to know that the federal mortgage loan interest rate is just 2% for retirees.

The long tenor makes your monthly repayment as low as your monthly rent. Yet, the house becomes yours at the end of the payment period.

ALSO READ: How Nigerians Abroad Grow Wealth Through Cheap Land For Sale Back Home

Federal Housing Loan Calculator

The housing loan calculator used by the Federal Mortgage Bank of Nigeria is a USSD Code calculator.

To use it:

  • Dial *219# and send
  • Then type 5 in the box that appeared and send
  • Type 2 and send
  • Input your net monthly income and send
  • Type the amount you wish to borrow and send
  • Type the number of years you intend to pay back and send. Then the amount you are eligible for will show up.

How to Check My National Housing Fund Balance

You can check your National Housing Fund balance by visiting your primary mortgage bank or dialling *219# and following the instructions. You can also download and register your information on their mobile app.


At this juncture, you now know how to get a housing loan in Nigeria. It is now clear that though you can access different types of housing finance in Nigeria, the Federal mortgage loan is the best because of its long tenor and low-interest rate.

The Federal Mortgage Bank of Nigeria gives a maximum of N15,000,000 or 90% of the property price, whichever is less.

Not only Nigerians at home can benefit from the federal mortgage loans in Nigeria, but those in the Diaspora.

Finally, you no longer have an excuse not to be a homeowner anymore. Get on the Federal Mortgage Bank Homepage and take actionable steps to be a landlord now!