How to own a home through federal mortgage bank’s new interest-free product

The Federal Mortgage Bank of Nigeria (FMBN) has provided more details about its rent-to-own mortgage housing that will attract no interest.

As against the previous seven per cent interest paid on an annual basis, the bank said it introduced the non-interest housing to encourage financial inclusion in the country.

According to a release by the spokesperson of the bank, Lawal Kauri, the disclosure follows the approval of the bank’s Board of Directors.

To access the housing, interested persons are advised to walk into any branch of the bank nationwide to apply at no cost. They must be contributors to the National Housing Fund.

According to Mr Kauri, houses will be made available instantly for applicants that have had their finances accessed to be able to fully pay.

The bank said the non-interest housing is designed to enable Nigerians to own their homes using a mortgage without engaging in an interest-bearing transaction.

Under the arrangement, the bank retains ownership of the property until the financing term ends or at any time during the lease period that the beneficiary wishes to purchase the property.

The non-interest rent to own product is available to Nigerians who must be contributors to the National Housing Fund (NHF) Scheme.

It covers both FMBN and non-FMBN funded properties with a maximum price of N15 million.

Beneficiaries have the option to pay to own the property in monthly/quarterly or annual rental installments over 30 years depending on their age and years in service.

The bank says it currently has over 3,190 housing units available for off-take on a rent- to-own basis across several locations nationwide.

Some of these houses are said to be located in FMBN funded estates in seventeen states and the Federal capital territory

FCT, Ondo, Adamawa, Jigawa, Ogun, Taraba,Nasarawa, Enugu, Sokoto, Abia, Kwara, Niger, Akwa Ibom, Kogi, Borno, Katsina, Kano, Kaduna.

Requirements

1.One passport sized photograph (with white background), name and signature behind

2. NHF contribution number

3. Proof of identity (valid driver’s license, National ID Card, international passport, staff ID or Tax Payee Card)

4. Pay slip for the last 3 months preceding the application.

5. Certified personal bank statement for the last six months.

6. Copy of letter of confirmation by employer.

7. Letter of undertaking to deduct the rental payment from the beneficiary’s salary and allowances and remit to FMBN’s TSA account

8. Bank Verification Number (BVN)

To apply:

· An interested subscriber will visit any of the FMBN state offices nationwide to schedule inspection and visit to available FMBN houses

· The applicant will then fill the form indicating his property of choice and attach all necessary documents as stipulated.

· The applicant will submit the completed application form to the FMBN state office for further processing.