The Federal Mortgage Bank of Nigeria (FMBN), a leading government housing institution, has taken innovative steps to boost housing affordability and inclusion for all segments of the Nigerian population.
FMBN’s offerings, account to Housing Development Network Advocacy (HDAN), included low down payment requirements, affordable pricing, long tenors, single-digit interest rates, and innovative homeownership options.
“For example, FMBN requires a maximum of 10 percent down payment for its loans, with loans below N5 million requiring zero down payment. This lowers the barrier to affordable housing for many Nigerians. Additionally, FMBN offers loans with long tenors of up to 30 years and minimal interest rates ranging from 6 to 7 percent per annum,” it said
In response to the financial challenges faced by many Nigerians, the report by HDAN said that FMBN has introduced a rent-to-own scheme.
“This scheme eliminates the need for equity requirements and allows beneficiaries to move into FMBN-funded housing properties as tenants, paying the house price in installments over 30 years at a single-digit interest rate. Upon completion of payment, they take full ownership of the property.
“Furthermore, FMBN has introduced innovative housing products to widen access to its services. These include a Diaspora Mortgage Loan, which provides economically active Nigerians in the Diaspora the opportunity to access affordable mortgage loans of up to N50 million to own a home in Nigeria. FMBN has also introduced a non-interest rent-to-own scheme for Nigerians who oppose interest-bearing transactions.
“Through these initiatives, FMBN is demonstrating a commitment to housing affordability and inclusion, making homeownership a reality for more Nigerians.
That’s a lot of information, but I can summarize it for you. The Federal Mortgage Bank of Nigeria (FMBN) is making significant efforts to address housing affordability challenges in Nigeria. They offer low down payment requirements, affordable pricing, long tenors, and single-digit interest rates. FMBN has also introduced innovative programs like a rent-to-own scheme and a Diaspora Mortgage Loan to widen access to affordable housing. These initiatives are aimed at making homeownership a reality for more Nigerians,” the report read.
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