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New build developer loans in Nigeria

[vc_row triangle_shape="no"][vc_column][vc_column_text]As briefly mentioned in prior sections, new construction homes can also be financed by developers. This is typically the case in Abuja, where there is an ever increasing stock of new build houses. Some of these property developers can help you with the cost of a mortgage by providing a contribution to your initial deposit. Many of such developers also have direct relationships with primary mortgage institutions, where they have special payment plans in place to help prospective customers with the financing of their new build houses. Mortgage banks in Nigeria Mutual Alliance Saving & Loans is listed among the Central Bank...

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The National Housing Fund

[vc_row triangle_shape="no"][vc_column][vc_column_text]The National Housing Fund (NHF) is a scheme established by the Federal Mortgage Bank of Nigeria (FMBN). The primary objective of this fund is for the provision of affordable residential homes for Nigerians. Under this scheme public sector works and other employees in the organised private sector, contribute 2.5% of their basic monthly salary to the FMBN. The FMBN then administers this pot of money, using it to help finance homes for Nigerians who have contributed to the scheme. The FMBN can contribute up to 90% of the cost of a potential house. These mortgage loans are offered at more favorable...

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The mortgage process is as follows.

[vc_row triangle_shape="no"][vc_column][vc_column_text]Save a deposit You will need some sort of deposit to put down on any home you are looking to buy. The amount of money you need to put down varies. It can be as little as 5% to over 50%. This is dependent on the property owners and the financing institutions, so you would do well to ask around some of these mortgage banks to get an idea of requirements. Look for house buying schemes There are various schemes in Nigeria that can help you buy a home. For example, you have the National Housing Fund which aims to provide better...

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How much deposit do you require?

[vc_row triangle_shape="no"][vc_column][vc_column_text]Having a smaller initial deposit means that the mortgage you seek will need to cover a much high percentage of the property’s value. As an example: If a house cost 50 million Naira and you have a deposit of 10 million Naira. The mortgage would have to cover the remaining 40 million Naira. We then have a LTV (loan to value) of 80%. The amount of mortgages available with high LTV in Nigeria are limited. Any such options available tend to have unattractive fees and interest rates. In order to avoid such, it’s better to save as much money as a deposit...

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Getting Mortgage Loans And Payment Plans In Nigeria

[vc_row triangle_shape="no"][vc_column][vc_column_text]Mortgages allow you to pay for an house in installments. This financing solution is becoming readily available in Nigeria. There has been a push, both from private lenders and the government, for mortgage solutions as a panacea to the Nigerian housing shortage. The National Housing Fund (NHF) is one of these governmental schemes aimed at alleviating the problem. As long as you are eligible, the NHF give good mortgage rates. Mortgages are easily accessible in Nigeria’s bigger cities such as Lagos and Abuja. One of the reasons for this is the formal nature of mortgages. In order for banks to lend...

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Who can get a mortgage in Nigeria?

[vc_row triangle_shape="no"][vc_column][vc_column_text]You may be eligible for getting a mortgage if you are formally employed, on a full time and permanent basis. You are also required to have saved a sufficient deposit and not have any bad outstanding loans or history of such. Most mortgage lenders will also check: Your monthly income Your monthly expenditure Your existing debt profile The value of the property you want financed Investigate if a mortgage is something you can afford Why can it be difficult to get a mortgage in Nigeria? Lending money is all about risk and uncertainty. In Nigeria things are not as certain as they can be, so there are...

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