The Federal Mortgage Bank of Nigeria (FMBN) has reduced the interest rate on its Renewed Hope Cities / National Housing Fund (NHF) mortgage scheme to 9.25% fixed for the first five years, effective February 2026. This is the lowest rate offered under the scheme since 2022 and follows the Central Bank of Nigeria’s (CBN) recent Monetary Policy Rate (MPR) reductions.
The adjustment is expected to increase eligibility, boost loan approvals, and make homeownership more accessible for first-time buyers targeting mid-market units priced ₦30M–₦50M in Lagos, Abuja, Ogun, and other states with participating developers.
Updated Eligibility Criteria (2026)
- Nigerian citizen or legal resident
- Registered with NHF (monthly contribution of 2.5% of monthly income for at least 6 months)
- Minimum monthly income: ₦150,000 (formal sector) or equivalent proof for informal sector
- Age: 21–65 years (must not exceed 70 at loan maturity)
- Valid means of identification (NIN, BVN, international passport)
- Clean credit history (no outstanding NHF or other mortgage defaults)
- Property must be from FMBN-accredited developer or approved private scheme
Maximum Loan Amounts & Equity Contribution
- Maximum loan: ₦50 million (increased from ₦30 million in prior years for Renewed Hope scheme)
- Minimum equity contribution: 10–30% of property value (varies by developer & income bracket)
- Loan tenor: Up to 30 years
- Interest rate structure: 9.25% fixed for first 5 years; reverts to market-linked rate thereafter (typically 1–2% above MPR)
Monthly Payment Examples (2026 Rates)
| Loan Amount | Property Value | Equity (20%) | Tenor | Monthly Payment (9.25%) | Total Interest Paid (30 yrs) |
|---|---|---|---|---|---|
| ₦30M | ₦37.5M | ₦7.5M | 20 yrs | ≈ ₦280,000 | ≈ ₦37.2M |
| ₦40M | ₦50M | ₦10M | 25 yrs | ≈ ₦340,000 | ≈ ₦62M |
| ₦50M | ₦62.5M | ₦12.5M | 30 yrs | ≈ ₦410,000 | ≈ ₦97.6M |
How to Apply in 2026 (Step-by-Step)
- Register / Contribute to NHF
- Enroll via FMBN portal or participating commercial banks (2.5% monthly salary deduction)
- Minimum contribution period: 6 months
- Select Property
- From FMBN-accredited developers or Renewed Hope Cities projects
- Verify property title (C of O / Governor’s Consent)
- Pre-Qualify
- Submit payslips, ID, BVN, NHF contribution proof to FMBN or partner bank
- Get pre-approval letter (valid 3–6 months)
- Apply for Loan
- Submit full application with property documents, valuation report (₦150k–₦300k cost)
- Processing time: 30–90 days
- Disbursement & Completion
- Loan disbursed directly to developer/seller
- Register mortgage deed at land registry
Practical Tips for Applicants in 2026
- Start NHF contributions now if not already registered
- Target ₦30M–₦50M units in Lagos (Ikorodu, Sangotedo), Ogun (Mowe, Shimawa), Abuja (Kuje)
- Combine with developer instalments for balance above ₦50M
- Prepare for 10–30% equity (savings or family support)
- Use FMBN portal for real-time status tracking
Final Thoughts
The drop to 9.25% fixed for the first five years makes Renewed Hope the most affordable formal mortgage option in Nigeria in early 2026.
For first-time buyers and middle-income earners, this is the clearest opportunity in years to enter the market with manageable payments — especially when paired with emerging corridor properties.
Have you applied for Renewed Hope or planning to? What’s your target property price? Share below!
Disclaimer: This information is for general purposes only and not legal advice. Consult a qualified real estate lawyer for guidance.
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