Let's Build Your Future and Feel More at Home

The Federal Mortgage Bank of Nigeria (FMBN) Rent-to-Own Scheme is an innovative affordable housing product designed to help Nigerian workers achieve homeownership. It offers a flexible and convenient payment plan, allowing beneficiaries to move into FMBN-funded homes as tenants and gradually pay for the property through monthly or yearly rent payments, eventually leading to full ownership.


Here's a breakdown of what the scheme is all about:

Purpose:

To provide an accessible pathway to homeownership for Nigerian workers, particularly those in low and medium-income brackets, who might find it difficult to afford traditional mortgages or lump sum payments.

To help reduce Nigeria's housing deficit.

To utilize existing and non-FMBN funded estates by making them available for this scheme.

How it Works:

Rent as Payment for Ownership: Instead of traditional rent, your monthly or annual payments are applied towards the eventual purchase price of the property.

Immediate Possession: Eligible beneficiaries are given immediate possession of the property once their application is approved.

Long Repayment Period: Payments can be spread over periods of up to 30 years, making it more affordable.

No Upfront Equity: In many cases, especially for properties within a certain price range (e.g., N5 million and below), there's no need for an initial equity contribution. For properties above N5 million up to N15 million, a flat equity of 10% may be required.

Fixed Interest Rate (or Non-Interest Option): The scheme offers a single-digit interest rate (historically 7% or 9% on an annuity basis). FMBN has also introduced a non-interest (Sharia-compliant) rent-to-own product based on "Ijarah Muntahia Bitamleek" (Lease to Own), where the bank retains ownership until full payment, catering to a wider range of Nigerians.

Property Ownership Transfer: Upon full payment of the agreed price, the title of the property is transferred to the beneficiary.

Eligibility Criteria:

Nigerian Citizen: Must be a Nigerian above 18 years of age.

NHF Contributor: Must be a contributor to the National Housing Fund (NHF) for a minimum period of six (6) months (for employed applicants) or up to three (3) years (for self-employed applicants) with consistent remittances.

First-Time Beneficiary: Applicants must be first-time beneficiaries of an NHF loan.

Verifiable Income: Must have satisfactory evidence of a regular flow of income to guarantee loan repayment. Monthly or annual payment should not exceed 1/3 of the applicant's monthly/annual income.

Benefits of the Scheme:

Affordability: Makes homeownership achievable for a wider range of Nigerians by eliminating the burden of large upfront payments and offering long repayment periods with low or no interest.

Convenience: Allows beneficiaries to move into their homes immediately.

Financial Inclusion: Caters to individuals who may not qualify for traditional mortgages due to lack of lump sum payments or those who prefer non-interest financing.

Security of Tenure: Provides a clear path to owning your home, unlike standard rental agreements.

No Future Price Increase: The unit cost of the house is typically agreed upon in advance, protecting beneficiaries from future price hikes.

Insurance: Properties are insured against Fire & Special Perils and Credit Life Assurance.

Application Process:

Visit FMBN Branch: An interested applicant visits any FMBN Branch Office nationwide to check for available houses and prices.

Fill Application Form: Complete the Rent-to-Own application form.

Submit Documents: Attach all necessary documents as stipulated by FMBN (e.g., passport photograph, proof of identity, last three months' payslips, certified personal bank statement for the last six months, letter of confirmation by employer, letter of undertaking to deduct rental payments from salary, BVN, etc.).

Application Review: FMBN reviews the application for document checks, processing, and approval.

Offer Letter and Move-in: If approved, FMBN issues an offer letter, and once accepted, the beneficiary can move into the home and begin their rent-to-own journey.

The FMBN Rent-to-Own scheme is a significant initiative aimed at making housing accessible and affordable for many Nigerians, promoting homeownership and contributing to national development.