By Kingsley Adegboye

Homelessness in Lagos state will soon be a thing of the past following plans by the state government to formally launch its mortgage finance initiative aimed at assisting Lagos residents to own houses of their own at affordable costs.

According to Mr. Sina Odunuga, Head of Public Relations Unit at the State Ministry of Housing who spoke to Vanguard Homes & Property on phone, plans towards the official launching of the mortgage system known as the Lagos Home Ownership and Mortgage Scheme (HOMS) have been concluded, adding that as soon as the new cabinet is in place in the state, Governor Babatunde Fashola will launch the scheme.

The ever increasing pressure to provide decent and affordable housing for its citizenry had led Lagos State Government to established the mortgage finance scheme. The HOMS will afford first time home buyers resident in Lagos State the opportunity to own houses. The scheme will also facilitate the creation of long term sustainable wealth for the Lagos state government.

Mr. Odunuda noted that in addition to providing the pool of houses, the government will also provide the funds for the mortgage facilities. He added that though the scheme is targeted at all residents of the state irrespective of state of origin or tribe, priority will be given to civil servants in Lagos State Ministries and Parastatals.

On eligibility, the spokesman said applicants for the scheme must be first time buyers, they reside in Lagos, they should be under 60 years, they must have a verifiable means of income and they should be credit worthy.

“Furthermore, successful applicant will be expected to make down payment of 30 per cent of the value of the house they are subscribing to, and a six per cent interest rate on the mortgage loan. The beneficiaries are also expected to have worked with their current employers for at least six months and must be confirmed by the employers.

“The beneficiaries of the scheme must occupy the houses and cannot transfer or rent out the house until all obligations are fulfilled. The scheme specifies a minimum tenor of 10 years and maximum of 20 years subject to the 70 per cent balance of the cost of the house purchased”, Odunuga explained.

http://www.vanguardngr.com/2011/06/lagos-home-ownership-and-mortgage-scheme-for-launch-soon/