…continued from last edition.
By Akhigbe Dominic.M. Esq
TUE, MARCH 7 2017-(i).THE TERMS AND CONDITIONS FOR OBTAINING NATIONAL HOUSING FUND LOANS (NHF):
The below conditions are basically set out to be met by a prospective applicant for the NHF Loan.
- An Applicant must be a Nigerian above the age of 18.
Anyone interested in the National Housing Funds loan must first of all be a Nigerian as provided for in the Constitution of the Federal Republic of Nigeria. At the time of the application; he or she must be at least eighteen years (18) old of age.
- Applicant must be a contributor to the National Housing Fund for a minimum period not less than six (6) months.
Having met 1 above; the intending Applicant must have a record or; and should indeed be a Contributor to the National Housing funds scheme; be dealt with this extensively in our last episodes. No Application would be evaluated if there is no proof of the NHF Contribution for at least six months prior.
- An intending Applicant must have satisfactory evidence of regular flow of income to guarantee loan repayment.
An individual intending to apply for the National Housing Funds Loan must show proof of regular inflow of income. This area may appear scaring to prospective Applicants. The fact is; everyone earns income. Income may be formal or informal. What is to be done here is; an individual should develop a documentation pattern for every kobo earned. Banking is recommended highly in this respect. A sachet water vendor who regularly makes one thousand naira every working day earns not less than twenty-one thousand naira monthly. This in an income flow. It becomes a useful record if the vendor has a bank account into which this money goes into daily. This record becomes very useful during the loan affordability test.
(ii).WHAT IS THE PURPOSE FOR THE NATIONAL HOUSING FUNDS LOAN?
The National Housing Funds Loan is strictly for Housing. The loan is given to any qualified, deserving Nigerian who intends to build, buy or renovate a house for personal occupation. This loan is not for any other purpose or for Refinancing. The NHF Loan is not an auto loan.
(iii).METHOD OF APPLYING FOR THE NHF LOAN:
- LOCATE AN MLO: An intending Applicant must first of all locate a Mortgage Loan Applicator (MLO) which will handle such Application. The MLO is also known as a Private Mortgage Bank. No individual processes his application directly through the National Housing Funds or the Federal Mortgage Bank of Nigeria. Such MLO must have the accreditation of the Federal Mortgage Bank to Access the National Housing Funds loan. Applicants need to be careful here not to fall into the hands of scammers who disguise with all sorts of fake Accreditations.
- OBTAIN THE LOAN FORM FROM THE LMO: .After locating an MLO, once the intending Applicant is satisfies that such an organization is not an imposture; he or she should obtain the Loan form from such MLO. Some Applicants may request the MLO to assist with filling up such loans forms; we do not recommend this. It is better to obtain the form, ask for clarifications where you think there are grey areas; then fill up the form and submit. Photocopies of such forms should be made and kept by the applicant before submission. Information provided must be true and factual.
(iv).SECURITY REQUIRED FOR THE NHF LOAN:
- The property for which the loan is sought shall serve as for the loan security; unlike other commercial banks loans, the NHF is secured first of all with the property for which the loan is sought. This is a huge burden taken away from the loan applicant.
….to be continued.
Akhigbe Dominic.M. Esq., /Property Law Expert/CEO, H.I.E Properties & Homes Ltd/SENIOR STRATEGIC PARTNER, PropertyLogic Incorporated/Seasoned Business Coach/Columnist of The BusinessDay/Contributing Editor, govandbusinessjournal.com.ng