Thread by @Bentosyn

Acquiring your house with the FMBN Mortgage Loan.

1. Be a contributor to the NHF;

2. Get an offer letter in your property of interest;

3. Open an account with a PMB (Preferably @FHAmortgage_ )

4. Fulfill the terms for FHA to make a loan application on your behalf @FMBNigeria

5. Your application is processed by FMBN ( board sits 4 times annually);

6. Approval will be communicated to @FHAmortgage_ which will in turn request that you meet some pre-disbursement conditions;

7. Upon meeting these conditions, your submissions are sent to @FMBNigeria

8. You submissions go through their internal processes like IRO, Credit/ Risk Analysis, Legal etc;

9. Subsequently, a draw down ( terms for disbursement) is generated and communicated to you via FHA;

10. Funds ( your load) will be released into your FHA account;

11. FHA will transfer the funds to your property owner with a mandate which you would have pre-signed;

12. You get your keys, sign a tonne of documents including repayment plan and mode, and have your property papers deposited with FHA until you complete repayment.

Above is a summary of the process (as experienced by me). I’m not sure how to do this...I think I should elaborate on the steps one by one...I’d also take questions in the meantime...

NB: The loan I got from FMBN was 4 Million, the process took 16 months and I’m a Public Servant

I’d now elaborate on the individual steps:
1. You must contribute 2.5% of your income to NHF for 6 months to be eligible...Civil Servants are contributors by default...private companies and self employed individuals would have to fill some forms with FMBN to start contributing;

2. Negotiate a favorable price with your property owner and get a letter of offer stating the amount and location;

3. You can use any approved PMB but in my case I used @FHAmortgage_ they have the lowest interest rate of 6% per annum others hover around 7.5-10;

4. The loan amount you are eligible for depends on your income and years remaining in service. Generally you can get up to 15M. No equity is required for 0-5M but 10% is required for 6-15%...you may calculate your eligibility amount by gross income/3 * months remaining in service

5. You’d submit your pay slips, copy of NHF card, valuation report of the property and some forms to FHA to start the application process. Before submission of application, NHF charged me 52,000 for Application Perfection Fees...this included valuation report fee and others

Upon submission of your application to FMBN, the waiting game then starts 😁...in my case, approval took about 10 months but it can be shorter

6. Pre-disbursement conditions include:
a. payment of 0.25% & 10% of loan sum as service charge, insurance and issuance C of O...

7. Another waiting for few months (4 months in my case) for FMBN’s internal processes.

9. Afterwards, you’d get a letter of offer of loan (conditions for drawdown). This letter conveys approval for disbursement and requests you to pay 2% of loan sum for Admin & Processing fees.

When you meet these, your loan will then be disbursed (say after a month) into your FHA account and onwards to the property owner (you’d get the credit and debit alerts for your information 😁)

I think that’s it!
@olayemi_123, @Prettycachy @blaqgurl009 @divpreety and others..

Above is my experience...I’d say there is a lot of room for improvement...I’d pin the tweet to my wall for a while...I’m also open to taking questions please...apologies that the post came 2 Days late...
#mortgage #HousingForAll @tundefashola @NGRSenate @MBuhari @HouseNGR

I must add that there is the Renovation Loan, Construction loan and the Developers loan that @FMBNigeria gives...I’d be glad to discuss my understanding of these. Also, I’m not an agent or Staff of the FMBN...infact, I know very little about Mortgage asides my personal experience