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Finance

How To Get A Home Mortgage Loan Without Collateral

Your credit score and credit history are the two most important factors that determine whether or not you get approved for a mortgage loan.

Mortgage loans are offered through accredited mortgage lending organizations and banks all across the country. The Federal Mortgage Bank (FMBN) issues home mortgage loan through the lenders and banks and raises fund for the loans through the National Housing Trust Fund or NHTF.

Requirements to take a mortgage loan
You need to fulfill some requirements, before you can be eligible to get a home mortgage loan in Nigeria. Some of the requirements are mentioned below:

An introduction letter from your employer: You need an introduction letter from your current employer to ensure that you are a permanent employee of that company.
Copy of documents of the property: You need to have copies of documents related to the property you want to purchase.

Valuation report of the property: You need to produce a valuation report of the property where the purchase is from an original allottee. The valuation report should be accompanied by photographs, taken from all angles of the property.

Cash flow projection on repayment of loan: You need to give a cash flow projection on repayment of the loan, where the processing fee will be 0.25% annually, management fee will be 0.5% quarterly, annual interest rate will be 15.75% and at least 2.5% of the loan amount will include fee towards perfection and sundry charges.
Salary stubs: You have to produce salary stubs of last three months, to prove that you have a good steady income and you can afford to repay the loan amount.

Bank account statement: You have to produce your bank account statement of last six to twelve months.
Offer letter from agent: You need to produce an offer letter from the agent confirming your interest to purchase of the property.

Your lender will talk to you about other reverse mortgage disadvantages and advantages, including the fact that you will still be required to maintain the property and live on it yourself. However, neither your assets nor those of your heirs can be touched by the lender if the balance becomes due. Only the property itself can be sold, with the lender retaining proceeds up to the balance owed.

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