FMBN Rent-to-Own

FMBN Rent-to-Own: The Complete Guide to Homeownership in Nigeria

The Rent-to-Own scheme by the Federal Mortgage Bank of Nigeria (FMBN) is an innovative initiative designed to make homeownership accessible and affordable for Nigerian workers. Unlike traditional mortgage models, this scheme allows you to move into an FMBN-funded property as a tenant and, through regular rent payments, gradually become the legal owner of the home.

This guide details everything you need to know about the scheme, from eligibility requirements to the application process via the portal.

What is the FMBN Rent-to-Own Scheme?

The Rent-to-Own scheme is a housing finance product that eliminates the need for a heavy initial down payment (equity), which is often the biggest hurdle to owning a home. The model allows contributors to the [National Housing Fund (NHF)](/nhf-loans-guide) to live in FMBN properties and pay for them over an extended period.

Key Benefits of the Scheme

• No Down Payment (Zero Equity): Unlike conventional mortgages that require up to 30% equity, this scheme requires zero equity. You simply start paying rent and move in.
• Low Interest Rates: The scheme offers a single-digit interest rate (typically between 7% and 9% per annum), making it much cheaper than commercial loans.
• Long Repayment Period: You have up to 30 years to pay for the property, depending on your age and remaining years of service.
• Affordability: Monthly or annual rent payments must not exceed one-third (1/3) of your income, ensuring it remains financially sustainable.
• Immediate Possession: Once your application is approved and processed, you receive the keys to move in.
• Fixed Price: Once on the scheme, the cost of the housing unit is fixed, protecting you from future price fluctuations in the real estate market.

To qualify for the FMBN Rent-to-Own scheme, you must meet the following requirements:

1. Citizenship and Age: Be a Nigerian citizen at least 18 years of age.

2. NHF Contribution: Be a registered contributor to the [National Housing Fund (NHF)](/nhf-loans-guide) for a minimum period of 6 months with consistent remittances.

3. First-Time Beneficiary: Must not have previously benefited from an NHF loan to buy or build a house.

4. Verifiable Income: Possess a satisfactory and verifiable source of income that guarantees the ability to pay rent.

Required Documentation

Prepare the following documents before starting your application:

• Completed application form (available on the portal or FMBN offices).
• One passport-sized photograph (white background) with name and signature on the back.
• NHF contributor registration number.
• Valid proof of identity (Driver’s License, National ID Card, International Passport, or Staff ID).
• Pay slips for the last 3 months.
• Certified personal bank statement for the last 6 months.
• Letter of confirmation from employer.
• Letter of undertaking from employer to deduct rent from salary and remit to FMBN.
• Bank Verification Number (BVN).

The application process can be initiated online or by visiting an FMBN branch. The Nigerian government has been digitizing many of these processes to facilitate access.

Steps to Apply:

1. Visit the Portal: Access the official FMBN website (fmbn.gov.ng) or the “Renewed Hope” Housing Delivery Portal (if applicable for new government properties).

2. Identify the Property: The scheme covers FMBN-financed properties with a maximum value of N15 million. Check the list of available properties in your desired location.

3. Obtain the Form: Download the application form online or pick it up at an FMBN branch.

4. Submit Documentation: Submit the completed form along with all documents listed above at the nearest FMBN branch or upload them to the portal, if the option is available.

5. Assessment: FMBN will review your application, verify your income, and NHF contribution status.

6. Approval and Possession: If approved, you will receive an offer. Upon acceptance, you can take possession of the property.

Try!

The FMBN Rent-to-Own scheme is one of the most viable routes to homeownership in Nigeria today, especially for medium and low-income workers. By removing the barrier of a down payment and offering subsidized interest rates, the federal government has opened the doors for many Nigerians to stop paying rent to landlords and start in their future.

If you are an NHF contributor, check your status today and consider applying for this transformative scheme.