FG Approves Zero Per Cent Equity for Housing Loans


Nigerians who wish to buy houses below N5 million using mortgage loans from the Federal Mortgage Bank of Nigeria (FMBN) will no longer have to come up with any equity deposits to the FMBN, the federal government on Thursday disclosed.
It also said that for housing loans costing between N6 and N15 million, it has approved for the FMBN to allow Nigerians deposit only 10 per cent equity to it to be able to access the loan.
The Minister of Power, Works and Housing, Mr. Babatunde Fashola, disclosed this at the seventh edition of the National Housing Council on Lands, Housing and Urban Development which held in Gombe.
Fashola’s speech which he delivered at the meeting was sent to THISDAY in Abuja by his senior special assistant on communications, Mr. Hakeem Bello.
In it, Fashola said the FMBN has been mandated to take zero percent equity for loans not exceeding N5 million, adding that the government also reduced equity contributions to housing loans up to N6 and 15 million from 20 to 10 per cent.
Additionally, he noted that the government planned to re-capitalise and open the National Housing Fund (NHF) to workers that are not within its payroll, that is private sector employees, adding that between May 2015 and July 10, 2018, the FMBN has issued 3,862 mortgages to Nigerians to acquire their own homes

Very good development