Step 7: Mortgage Applications and Payments

Step 7: Mortgage Applications and Payments

In the case of FGSHLB, the following steps are required to process mortgage loan:

  • The applicant approaches the FGSHLB with a copy of the offer letter and purchases Loan Application Form at the cost of N1000 only.
  • The applicant fills and returns the form with required information and documents attached.
  • A file is opened for the applicant and loan request processed for payment.
  • Approval Letter is issued and the Applicant submits Original copies of Offer Letter and Letter of Undertaking to FGSHLB.
  • At this point, the Developer will be required to submit the original Titles of the property to be domiciled in the FGSHLB, and released to the allottee/off-taker upon full liquidation of the loan facility.
  • Payment is based on first come, first served, subject to availability of funds and in line with the Applicants FGSHLB Loan Threshold.
  • 100% payment of loan is made for fully completed Houses, while 50% for uncompleted houses and the remaining 50% on completion .

In the case of the FMBN, the following steps will be required:

  • The applicant must apply through any accredited Primary Mortgage Bank (PMB) and pay requisite processing/admin fees.
  • Open a savings account with a registered PMB
  • The applicant must have registered in the National Housing Fund (NHF) with monthly contributions remitted to FMBN promptly. At least 6 months contributions should be made
  • Applicant must provide satisfactory evidence of regular income. Equity contribution of personal stake of 20% or 30 % depending on the loan amount applied for.
  • An individual borrower is entitled to a maximum of N15 million. No individual shall be granted a loan in excess of 90% of the cost or value of the property to be mortgaged.
  • The applicant is expected to pay his equity contribution in his savings account with the selected Primary Mortgage Bank (PMB) before the Loan is processed and paid by FMBN
  • The Loan will be paid through the PMB to the Developer. The PMB is expected to facilitate both the payment of the Equity and Loan on behalf of the applicant to the Developer