The Managing Director and Chief Executive Officer of the Federal Mortgage Bank of Nigeria (FMBN), Ahmed Dangiwa has thrown more light to the bank’s scheme known as the National Housing Fund (NHF).
The NHF scheme according to him is designed to enable Nigerians have access to affordable mortgage loans through a contributory system. He made this known on Friday while granting an interview to Housing TV on their One on One Segment in Abuja.
The National Housing Fund scheme managed by FMBN is meant to provide home ownership for low and medium income earning Nigerians. According to Dangiwa, it’s a contributory scheme for Nigerians in formal, informal, private and public sectors to contribute 2.5% of their monthly earnings into the pool of funds. It’s from this pool of funds that they provide mortgages for Nigerians. The contributions are refundable at retirement and it gives its contributors the leverage to approach the bank to get mortgage loans.
Through the National Housing Fund, the FMBN are providing loans for people to either buy, construct or renovate their own house.
For those wishing to buy their own houses, the bank gives soft loans at 6% which can be paid over a period of 30 years for a maximum of 15 million naira.
For Nigerians who wish to obtain housing loans not exceeding N5 million, the bank has been mandated to offer 0% equity. Also, Nigerians will deposit only 10 per cent equity to it to be able to access loans between N6million and N15 million.
For those also intending to construct their own houses, the bank gives loans for that in any location of their choice. But that, according to Dangiwa, is only possible as long as they have a C of O, design and costing.
‘’We also give soft home renovation loan of 1 million naira, but people in the rural areas do not only use it to renovate but to even construct their own houses.
‘’We also give construction finance to developers to build houses for the NHF contributors. When they build the houses, they will bring it forward to the bank, we will choose a Primary Mortgage Bank who will package it or we go through the Rent To Own scheme.
‘’The Rent To Own is another window where once you are packaged for our funded estates, you move in and start paying your rent and at the end of the day the house becomes your own when you have completed the mortgage payment through your rent. These are some of the products the NHF provides,’’ he said.
Dangiwa said the Rent To Own package which was launched early this year is already assisting many Nigerians in accessing affordable housing.
He said, ‘’If you go to Kaduna state you will find the KSDP estate where we built up to 263 houses placed on rent to own. It was packaged by the trade union congress and Nigeria labour congress of Kaduna state. We have done same in many states of the federation.
Dangiwa added that The Rent To Own is a great and much improved option because it also comes with an insurance for beneficiary even while still paying the rent.
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