Do you know Diaspora can now get a Mortgage in Nigeria? The Federal Mortgage Bank of Nigeria (FMBN), in partnership with the Nigerian in Diaspora Commission (NIDCOM), has introduced a pivotal initiative known as the Diaspora NHF Mortgage Loan. But here are some questions and answers frequently asked by people who intend to apply and own a home in Nigeria from abroad;

Q1: What is the Diaspora NHF Mortgage Loan?

A1: The Diaspora NHF Mortgage Loan is a program initiated by the Federal Mortgage Bank of Nigeria (FMBN) in partnership with the Nigerian in Diaspora Commission (NIDCOM). It allows Nigerians living abroad to invest in property in Nigeria without being physically present during the transaction process.

Q2: How much do I need to contribute to be eligible for the loan?

A2: The contribution amount depends on your monthly income. If you earn below $3,000 monthly, you are required to contribute $150 per month. If you earn more than $3,000 monthly, your contribution should be $200 per month. These contributions must be made for a minimum of 12 months to become eligible for the loan.

Q3: What is the maximum loan amount I can access?

A3: Under this scheme, you can access loans up to N50 million (Nigerian Naira).

Q4: What is the repayment period for the loan?

A4: The loan repayment tenure extends up to ten years, providing a reasonable timeframe for borrowers to fulfill their financial obligations.

Q5: What is the interest rate on the loan?

A5: The interest rate is capped at 9%, which is a single-digit rate. This is generally more favorable compared to many commercial rates available in the market. Heritage Homes for instance have a dedicated specialized payment plan options tailored towards the Diaspora here.

Q6: Do I need to provide a down payment?

A6: Yes, the scheme requires a 30% down payment from the applicant. The bank then finances the remaining 70% of the property value.

Q7: How can I apply for this loan?

A7: The application process is handled through accredited Primary Mortgage Banks. While specific details may vary, you would typically need to contact one of these accredited banks to initiate your application. It’s advisable to check the official NIDCOM website for the most up-to-date information on the application process.

Q8: Is my investment protected?

A8: The FMBN has implemented measures to protect investments and property rights of diaspora Nigerians. This includes legal safeguards and involvement of credible financial institutions. However, as with any significant financial decision, it’s prudent to conduct your own due diligence and possibly consult with a financial advisor.

Q9: Can you provide an example of how this loan might work in practice?

A9: Certainly. Let’s consider a hypothetical scenario:

John, a Nigerian living in the UK, earns $4,000 monthly. He contributes $200 per month for 12 months, totaling $2,400. He then identifies a property in Lagos worth N40 million.

Under this scheme, John would need to provide a 30% down payment, which is N12 million. The FMBN would then provide a loan for the remaining 70%, which is N28 million.

John would have up to 10 years to repay this N28 million loan at a 9% interest rate. This structure allows John to invest in property in Nigeria while managing his finances from abroad.

Q10: How does this scheme benefit Nigeria?

A10: This scheme is expected to have positive economic and social impacts. It could help reduce the housing deficit in Nigeria by encouraging property investment. Additionally, it provides a stable investment channel for Nigerians abroad, potentially increasing remittances in the form of capital investment rather than just consumption. However, the long-term effects remain to be seen and will depend on various economic factors.

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