Do you have some money in the bank and you are interested in making a valuable investment in housing but you are scared of going broke after that? Or you do not have enough to purchase a house and are still saving up for it? Well, that feeling is not strange and we have got the perfect solution for You.
Note that if you calculate the cost of your dream house divided by your yearly savings plus your current age, that is definitely how old you will be when you finally get to build a house you see, and we are pretty sure you wouldn’t want that, would you?
What is a Mortgage?
A mortgage is a loan from a bank or other financial institution that helps a borrower purchase a home with repayment plans spread over a long time It is a fast and secure means to homeownership and is oftentimes funded by the Government.
Why use a mortgage plan?
Applying for a mortgage loan is a faster way to own your own house. It is a cost-effective way of borrowing as it gives you a chance to invest your money in other things as opposed to making a heavy one-time payment. A mortgage loan is tax-deductible and tax-favorable which makes it a smart way to invest as your house value increases within your repayment period too, just in case you are planning to resell.
How Can You Access a Mortgage?
The National Housing Fund (NHF) <-linked to NHF website- scheme was created for Nigerians who cannot afford commercial housing loans. This scheme allows individuals, commercial and merchant banks, and the federal government to contribute certain amounts to the pool of funds. These funds when mobilized will then be made available to contributors at affordable interest rates to build homes.
Who is eligible for the NHF Mortgage Loan?
To be eligible for the NHF mortgage loan, you must be a Nigerian in any sector of the economy (private, public, and self-employed) who must be a registered contributor and up to date with his/her contributions to the NHF.
To access the loan;
1) Consult Veritasi Homes and Properties to find out the cost of your desired home and how much equity contribution you have to make.
*equity contribution is the financial commitment of 30%, 20% or 10% depending on the loan amount applied for made to your real estate developer* – in italics
2) Make your equity contribution payment and get pre-approved for a loan by confirming required documents such as three years tax clearance certificate, evidence of NHF participation among others.
3) Get your loan approved and do a final walkthrough by paying closing costs and providing other documents like your deed of assignment, survey form, and VAT.
4) That’s it! You are now a homeowner. Congratulations.
What You should know
NHF housing loans are repaid on monthly installments from the income of the beneficiary at affordable and convenient interest rates. Also note that the only collateral You need is the property You are securing the loan for, and you can only obtain an NHF loan once in a lifetime.
Want us to walk you through the process or have further questions?
Leave a comment send an email to ese@veritasihomes.com.
