NHF Rent-to-Own, An Alternative Way To Own A House In 2023


Buying a house in Nigeria is oftentimes expensive, and due to this, the vast majority of the population opts to rent. Nigeria’s ratio of house renters to property owners is highly disproportionate. House renters are on the larger side.

Although most Nigerians desire to have a place to call home, what happens when your cumulative salary does not meet up to the house price you wish to purchase?

To reduce the gap, the Nigerian government developed the National Housing Fund (NHF). A housing scheme for easy property acquisition for working-class citizens.

To serve its citizens better the NHF has various products and services and the Rent-to-Own scheme is one of them.

For easy management and uniformity, the NHF and its products are overseen by the Federal Mortgage Bank of Nigeria (FMBN).

This is definitely something every average working-class Nigerian desiring to own a home should pay attention to.

The NHF Rent-to-Own scheme is an alternative way to becoming a landlord. It is basically a means for you to pay rent on the house, and after a number of years, you’ll own the property. 

Does this initiative appeal to you? If you’re wondering how possible the NHF rent-to-own is or how true it could be. Well, In this article, we will review the National Housing Fund (NHF) rent-to-own scheme, its advantages, risks, and how you can benefit from it.

What Is National Housing Fund Rent-to-Own?


The Rent-to-Own scheme is an affordable housing product by the Federal Government of Nigeria to make housing more affordable for its citizens.

The scheme is part of the National Housing Fund and is overseen by the Federal Mortgage Bank of Nigeria. Introduced in 1977 and has helped over 1,000,000 Nigerians to own homes at a more affordable rate.

How Does It Work? 

This scheme is specifically designed to enable Nigerian workers to move into Federal Mortgage Bank of Nigeria (FMBN) owned homes as tenants. Then they pay for and own the houses through monthly or yearly rent payments, for up to 30 years as the repayment period. 

Also read; How To Make Your House A Home: 5 Tips

The best part of this? The rental payments remain the same all through the repayment period! 

The NHF Rent-to-Own scheme allows eligible beneficiaries to own a residential property through rentals. In Nigeria, there are more home renters than homeowners due to the high cost of buying a home. This innovative scheme has helped combat the housing deficit in the country.

Who Is It For?

  • Civil Servants 
  • Self-employed Nigerians 
  • Traders 
  • NGO workers
  • Commercial Drivers 
  • Private Sector Workers
  • Artisans

Who Can Apply? 

  • Any Nigerian above the age of 18 years.
  • Applicants must be registered under the National Housing Fund (NHF).
  • Applicant must be a contributor to the National Housing Fund (NHF) for a minimum period of six (6) months.
  • Applicants must have satisfactory evidence of regular income flow to guarantee loan repayment.
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Product Features of the NHF Rent-to-Own Scheme

  • The maximum purchase price of the property must not be more than Fifteen Million Naira(N15 million). 
  • The rent duration is thirty(30) years maximum.
  • The interest rate is fixed at 7% annually.
  • Monthly or annual payment collection shall not exceed ⅓ (one-third) of the applicant’s annual income.
  • The loan amount is available for NHF contributors once in a lifetime.
  • Properties would be insured against fires, special perils, and credit life assurance as covered in the interest rate.

Eligibility Criteria 

  • Applicants must have registered with the National Housing Fund (NHF) for not less than six months with consistent NHF contribution fee remittance.
  • Applicants must be first-time beneficiaries of the NHF loan.
  • Beneficiaries must have a verifiable means of income.

How To Apply 

  • An interested NHF contributor would visit the Federal Mortgage Bank of Nigeria (FMBN) branch offices nationwide to check out the available houses and their prices.
  • The applicant would then fill out the form indicating their property choice, attach all necessary documents as stipulated, and submit the completed form to the same branch office for further processing.

Documentation Requirements for NHF Rent-to-Own Scheme

  • One passport-sized photograph (white background, standard) with name and signature written behind.
  • Your NHF contribution number.
  • Proof of identity could be either one of these (Valid driver’s license, National ID card, International passport, Staff ID card, or Tax Payee Card).
  • Salary Payslip for the last three (3) months before you apply.
  • Certified personal bank statement for the last six (6) months.
  • Copy of letter of confirmation by your employer.
  • Letter of undertaking by your employer to deduct the rental payment from the beneficiary’s salary and allowances, and remit to FMBN’s TSA account.
  • Evidence of additional income to service the rent, if any.
  • Provide your Bank Verification Number (BVN).

Also read; 10 Must-Have Important Property Document In Nigeria

Collateral For The Loan 


The subject property for the transaction is purchased in the name of the Federal Mortgage Bank of Nigeria (FMBN) and held in trust by the bank until the completion of the full loan amount by the beneficiary. Then the title would be transferred to the beneficiary. 

In essence, the only collateral for the loan is the house itself. After the complete loan repayment, the beneficiary takes full ownership of the property.

How To Repay 

The beneficiary shall make a monthly or annual repayment, for a maximum of 30 years repayment period. The money would be automatically deducted from their accounts and remitted to the Federal Mortgage Bank of Nigeria (FMBN) TSA account.


  • Beneficiaries would be given immediate possession of the property.
  • NHF Rent-to-Own is an alternative to mortgages or borrowing.
  • No future rent increase. The rent payment is fixed throughout the loan period.
  • Insurance taken on the house shall offset any loss to fire, windstorm(natural disasters), or unforeseen occurrence.
  • No hidden charges when taking the loan.
  • The interest rate is fixed at 7%
  • The payback period of up to 30 years makes it easy to repay the loan.
  • You can borrow up to N15 million.
  • The only collateral needed is the interested house.
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  • In the NHF Rent-to-Own scheme, Losing your means of income 

is usually the major challenge faced by beneficiaries. It is also the most common and can lead to defaulting on loan repayment. 

  • This can lead to the bank reclaiming the house. To avoid this, pick a repayment plan that you can comfortably repay in or out of a job.
  • Before taking the loan, pay a physical visit to the interested house and ensure it doesn’t have any structural defects. Check the drainage pipes/ channels, water pipes, electricity connections, leaking roofs, etc.
  • Verify the documents on the house at the nearest Land Registry. 
  • Check for the promised amenities such as security, running water, electricity supply, nearness to good infrastructure, etc.

NHF Rent-to-Own Property Locations In Various Nigerian States (Projects)


The NHF Rent-to-Own is in the following states: Abuja, Kaduna, Ogun, Enugu, Niger, Abia, Nassarawa, Kano, Akwa-Ibom,  Ondo, Kogi, Kwara, Adamawa, Katsina, Sokoto, Bornu, Taraba, and Jigawa.

Below are some of the details.

1. FCT Abuja 

  • 2 Bedroom Semi-Detached Bungalow – N9.2 Million
  • 3 Bedroom Semi-Detached Bungalow – N9.5 Million 

FCT (Special Site)- FCT Abuja 

  • 1 Bedroom Block of Flat-  N4.4 Million 
  • 2 Bedroom Block of Flat – N8.7 Million 
  • 3 Bedroom Block of Flat – N9.8 Million 

Adjacent to Centenary City, Airport Road, FCT Abuja.

  • 2 Bedroom Block of Flat – N7.5 Million 
  • 3 Bedroom Block of Flat – N10.1 Million


  • Running Water 
  • Fairly good roads 
  • Electricity 
  • Security

Contact Information 

Number 13 Ikeja Close Off Oyo Street, Area 2 Garki, Abuja. 

2. Kaduna State 

  • 3-bedroom detached bungalow 
  • #6.5 Million 


  • Water 
  • Electricity 
  • Security 
  • Fairly good access roads

Contact Information 

J4 Ali Akilu Road, Unguwan Shanu Kaduna, Kaduna State.

3. Ogun State 

  • 2 Bedroom Terraced Bungalow-  N4.5 Million 
  • 3 Bedroom Semi-Detached Bungalow – N5 Million 

Asese, Mabba Community, KM 35/40 Lagos Ibadan Expressway Abeokuta, Ogun State.

  • 1 Bedroom Bungalow N3.9 Million 
  • 2 Bedroom Semi-Detached Bungalow N7.2 Million
  • 3 Bedroom Semi-Detached Bungalow N8.5 Million 

Behind OGTV, Ajibo, Abeokuta, Ogun State.

  • 1 Bedroom Terraced Bungalow N3.5 Million 
  • 2 Bedroom Semi-Detached Bungalow N7.7 Million
  • 3 Bedroom Semi-Detached Bungalow N8.7 Million


  • Good roads 
  • Running Water 
  • Electricity 
  • Security

Contact Information 

FMBN House, Along Quarry Road, Opposite New Covenant Church, By Anglican Grammar School Junction, Abeokuta, Ogun State.

4. Enugu State 

  • 4 Bedroom Bungalow – N5.2 Million 
  • 1 Bedroom Bungalow – N 3.5 Million 
  • 2 Bedroom Bungalow – N7 Million
  • 3 Bedroom Bungalow – N8.4 Million


  • Water 
  • Electricity 
  • Good Roads 
  • Security 

Contact Information 

Number 7 Ridgeway Road, Off Okpara Avenue, Adjacent to Enugu State Waste Management Authority (ESWAMA), State Secretariat GRA, Enugu State.

5. Kwara State 

  • 1 Bedroom Terrace Bungalow – N3.8 Million 
  • 2 Bedroom Semi-Detached Bungalow – N6.9Million
  • 3 Bedroom Semi-Detached Bungalow – N8.9Million


  • Water 
  • Electricity 
  • Security 
  • Roads

Contact Information 

Asa-Dam Road, Opposite Coaster Filling Station, Illorin.

6. Akwa-Ibom State 

  • 1 Bedroom Bungalow – N4. Million 
  • 2 Bedroom Semi-Detached Bungalow – N7.5 Million
  • 3 Bedroom Semi-Detached Bungalow – N8.5 Million 
  • 2 Bedroom Block of Flat – N7.2 Million
  • 3 Bedroom Block of Flat – N8 Million 


  • Fairly good roads 
  • Electricity 
  • Running Water 
  • Security 

Contact Information

77 Aka Road, Uyo, Akwa-Ibom State

7. Abia State 

  • 1 Bedroom Bungalow – N3.9 Million
  • 2 Bedroom Semi-Detached Bungalow – N7.6 Million
  • 3 Bedroom Semi-Detached Bungalow – N8.6 Million
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  • Water 
  • Electricity 
  • Security 
  • Roads 

Contact Information 

Plot 189 Aguiyi Ironsi Layout, Along BCA Road, Umuahia, Abia State.

8. Kano State 

  • 1 Bedroom Terrace – N4.3 Million
  • 2 Bedroom Semi-Detached – N7.5 Million
  • 3 Bedroom Semi-Detached – N8.8 Million


  • Running Water 
  • Electricity 
  • Security 
  • Good Roads 

Contact Information

Number C12, Zaria Road, Opposite GTBank, Kano State.

9. Ondo State 

  • 1 Bedroom Bungalow – N4.3 Million
  • 2 Bedroom Semi-Detached Bungalow – N8 Million
  • 3 Bedroom Semi-Detached Bungalow – N8.5 Million


  • Electricity 
  • Running Water 
  • Security 
  • Good Roads

Contact Information 

FMBN Building, Number 20 Oke-Eda Road (Old Secretariat), Akure, Ondo state.

FAQs About The NHF Rent-to-Own Scheme

Is the NHF Rent-to-Own Scheme only for Residential houses?

Yes, it is. The scheme makes provisions for working-class citizens to buy residential houses only. Although there are other product packages under the NHF that make provisions for other kinds of home investments. Examples include the construction loan, Diaspora NHF loan, etc.

Can a business owner access the NHF Rent-to-Own Loan?

Business owners can access the NHF Rent-to-Own loans but they must be registered under the National Housing Fund (NHF) and meet all the requirements. 

Can I repay the loan before the 30-year time-lapse?

Yes, you can. All that is required of you is to ensure you have a high monthly income, as only ⅓ can be deducted from your annual salary. 

Must I rent through the FMBN-owned houses or can I buy the house from someone else?

Yes, but just for this package. If you plan to buy a house outside of FMBN, feel free to do so.

Contact Information

Final Thoughts 

Homeownership in Nigeria comes with many benefits. Comfort, zero rents, and complete privacy are some benefits. NHF Rent-to-Own is an innovative scheme for smart working-class Nigerians to take advantage of.

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