Mortgages for Nigerians Abroad: Buying Property Back Home

The dream of homeownership remains strong for many Nigerians living abroad. Thankfully, mortgage banks like FMBN caters specifically to Nigerians in the Diaspora, making that dream a reality.

Good News for Prospective Homeowners

As of February 2024, a new government initiative, the Diaspora Mortgage Housing Scheme, was launched to specifically support Nigerians residing in the United Kingdom, United States of America, and Canada in purchasing property in Nigeria. This program aims to make homeownership a more accessible reality for Nigerians abroad (Punch Newspaper).

Government Initiative: The NHF Diaspora Mortgage

The National Housing Fund (NHF) introduced a mortgage program specifically designed for Nigerians living abroad. This program allows you to contribute to the NHF scheme for at least twelve months, granting access to loans for purchasing property anywhere in Nigeria. Here are some key features:

Convenient Application and Tracking

• Start Early, Apply Faster: Begin your loan application after 9 months of consistent NHF contributions. Full eligibility is reached after 12 months.
• Online Management: Submit your application and track your monthly contributions easily through the Primary Mortgage Bank’s user-friendly online platform or by using their USSD Code *219#.

Flexible Loan Terms

• Extended Repayment: Enjoy a loan term of up to 15 years to comfortably manage your repayments.
• Early Repayment Benefits: Repay your loan early for faster ownership. The sooner you settle the loan, the quicker the property title is transferred to you.

Loan Limits and Eligibility

• Maximum Loan Amount: The maximum loan principal is ₦50,000,000 (Fifty Million Naira).
• Individualized Loan Amounts: Your specific loan amount will be determined based on your current and projected income.
• Verifiable Income: You’ll need to demonstrate a steady income stream to qualify for the loan. An accredited Credit Bureau will assess your eligibility.
• Proof of Residency: Provide documentation showing your temporary or permanent resident status in your current country of residence.

Security and Peace of Mind

• Contribution Refunds: If you haven’t used the NHF program by the age of 70, you’ll receive a refund on your contributions, including an interest rate based on the prevailing bank rate (currently 2%).
• Property Insurance: The property you purchase will be insured against various risks, including mortgage protection, burglary, fire, special perils, and life insurance (death benefit).

Benefits of NHF Diaspora Mortgage

• Convenience: Contribute and apply remotely without needing to be physically present in Nigeria.
• Accessibility: Open to Nigerians across the globe who meet the eligibility criteria.
• Government Backing: Provides a level of security with NHF involvement.

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General Requirements for Mortgages

To qualify for the NHF Diaspora Mortgage, you’ll need to meet the following criteria:

Nigerian Residency Status

• You must be a Nigerian citizen as defined by the National Diaspora Policy.

Financial Requirements

• Proof of Income: You’ll need to demonstrate verifiable income through documents like recent payslips or business financial statements.
• NHF Contributions: You must have consistently contributed to the National Housing Fund (NHF) for at least twelve months before applying. There should be no outstanding payments on these contributions.
• First-Time Borrower: This program is intended for first-time beneficiaries of NHF loans.

Property Requirements

Loan Security: The property you intend to purchase will serve as collateral for the mortgage. The Federal Mortgage Bank of Nigeria (FMBN) will handle the mortgage perfection process internally.

• Property Value: The property value must be sufficient to cover the loan amount in case of default.
• Finding a Property: While not mandatory, FMBN may, in some cases, assist you in locating suitable properties that can be purchased and financed under this program.

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Legal Requirements

• Loan Agreement: Upon loan approval but before receiving the funds, you’ll be required to sign the Deed of Legal Mortgage.

Required Documents

To complete your application, you’ll need to submit the following documents:

• Online Application Form: Fill out the online application form provided by the NHF program.
• Passport: A copy of the data page from your valid international passport.
• Financial Documents: Upload recent payslips for the past 3 months and bank statements covering the last 6 months.
• Employment Verification: A letter from your employer confirming your employment status.
• Self-Employed Applicants: If you are self-employed, you’ll need to provide a certificate of business registration from your country of residence.

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NHF Diaspora Mortgage: Contribution and Repayment

NHF Contributions:

• Registration: You’ll register with the National Housing Fund (NHF) to participate in the program.
• Monthly Contributions: The amount you contribute depends on your income:
  • Below $3,000 monthly income: Contribute $150 per month.
  • Above $3,000 monthly income: Contribute $200 per month.
• Contribution Period: Consistent contributions are required for at least 12 months before applying for the mortgage loan.

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Mortgage Loan:

• Down Payment: You’ll be required to make a down payment of 30% of the property value.
• Loan-to-Value Ratio (LTV): The NHF Diaspora Mortgage program offers loans that cover up to 70% of the property’s value.
• Application Fee: A one-time, non-refundable application fee of $50 will be payable to the Federal Mortgage Bank of Nigeria (FMBN).
• Interest Rate: The loan will have a fixed interest rate of 9% per annum.
• Flexible Repayment Options: Choose between advance, monthly, or annual instalments to fit your financial situation. Earlier loan repayment allows for faster property ownership transfer.

Important Note:

• Default Consequences: Delinquency exceeding 3 months will entitle the bank to repossess the property to recover the outstanding loan amount.

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How To Apply

1. Visit Nidcom.gov.ng on your mobile device or laptop
2. Fill out the form with your correct details because all the information you have provided will be verified by FMBN and NiDCOM. Furthermore, you will be contacted if there are any errors. Your application will need to be processed, this could take 5 working days.

If you have been accepted, you will receive an Identification Number. You will begin contributing in the following month. You need to have contributed for 12 months to be eligible for the mortgage (you may wish to begin the application process after 9 months).

Owning a home in Nigeria is a significant achievement. With the Diaspora mortgage options available, you can bridge the distance and achieve your dream of property ownership.