buy a house with NHF

The National Housing Fund (NHF) is a scheme introduced by the Federal Government to aid public servants and private employees within the country to purchase personal properties. It was established by Act 3 in 1992 with the main objective of helping Nigerians, particularly those within the low and middle-income class, to own houses. The funds paid by these public servants and private employees enable them to acquire loans to build houses at low-interest rates. Typically, the stakeholders pay 2.5% of their basic salary to the NHF. Being an active participant in the payment of the set percentile pre-qualifies you to seek a loan from the NHF. The 2.5% of the basic salary is paid to the Federal Mortgage Bank of Nigeria.


Contributors that are deemed eligible for an NHF loan must be above 18 years of age and must have actively contributed to the fund for not less than 6 months. Other eligibility criteria include;

  • Evidence (bank statement) of the borrower’s account showing a regular flow of income. This helps in reducing the risk for the NHF and guarantees them that the applicant has the ability to repay the loan.
  • The NHF also requires the individual to make down payment on the intended property but unlike other financial institutions, NHF allows applicants pay as low as 10% of the total sales price of the house. This depends on the loan amount. The loan has a 6% interest attached to it.
  • The applicant needs to have an account with and apply through any accredited Primary Mortgage Bank (PMB). 


These are the requirements needed to apply for a National Housing Fund loan:

  1. Opening a saving account with a registered PMB
  2. An active contribution to the NHF for at least 6 months prior application
  3. Satisfactory evidence of flow of income
  4. Three years tax clearance certificate
  5. Evidence of NHF participation; this is to ensure you are a participant
  6. Letter of consent to mortgage to your chosen PMB
  7. Copies of salary payment for the preceding three months
  8. Completed prescribed mortgage loan application form
  9. Photocopies of valid title documents e.g. Certificate of Occupancy (C of O), Deed of Assignment
  10. Approved survey/site plans
  11. Approved building plans 
  12. Priced Bill of Quantities where applicable
  13. Valuation report prepared by a firm of registered surveyors and valuers where applicable 
  14. Equity contribution of personal stake (down payment) of 30 percent, 20 percent, or 10 percent depending on the loan amount sought for ₦15 million, ₦10 million and ₦5 million respectively
  15. Copies of Articles and Memorandum of Association and a copy of Certificate of Incorporation are needed for registered self-employed applicants. These serve as evidence of employment
  16. For government projects, an official letter/Acceptance and Allocation letter needs to be submitted

The NHF loan is strictly for residential accommodation. As security for the loan, the property serves as collateral. The property has to be insured against hazards of any kind and should possess sufficient value to recover the loan if the borrower fails to pay back after the payment period.