Mary Nnah
"When the term "buying a home" is mentioned you undoubtedly assume that it involves a lot of money, well it does, but there are alternative ways to break down the payment when purchasing a home", Ekeanyanwu Dorcas, areal estate expert has said.
Educating Nigerians on ways to own homes without actually breaking the banks, Ekeanyanwu said, "The first is through "mortgage". Many people want to live in a place free of landlord problems or do not want to pay a huge sum at once, that is where the idea of obtaining a mortgage creeps up on you while you're looking for that perfect, affordable home."
He explained that: 'A mortgage is a loan for which real estate or other property is pledged as security. The borrower and the lender (often a bank) sign into an agreement whereby the borrower gets cash up front and makes payments over a certain period until he repays the lender in full."
When discussing mortgages in Nigeria, Ekeanyanwu said it is almost impossible to not talk about the National Housing Fund (NHF), a scheme created by the Federal Government for Nigerian workers, to help them access flexible financing to get their own homes and is administered by the Federal Mortgage Bank of Nigeria (FMBN).
He noted further that Nigerians can apply for a low-interest housing loan through NHF and use the funds for the purchase, building, refurbishment, or expansion of residential structures.
Another intriguing way to own a home without paying a lump sum, National Housing Fund said was through the "Rent to Own Property Ownership Scheme". He said that this scheme, although not too popular is a hassle-free way of becoming a homeowner.
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"Legrande Properties Development Company Limited, a real estate company in Lagos offers this scheme as a new development in their homeownership plan for their 2 and 3-bedroom units. This scheme provides a convenient payment plan for homeownership for Nigerian workers. Legrande Properties Development Company Limited is in partnership with the Federal Mortgage Bank of Nigeria (FMBN) for this scheme", he noted.
Speaking further, he said this scheme involved the FMBN paying 80% of the property's total price on one's behalf which can be paid back monthly or yearly for up to 30 years while the subscriber will pay the remaining 20% in two installments.
He explained that the terms and conditions for accessing the scheme were: Any Nigerian above the age of 18 years can apply; applicants must be a contributor to the National Housing Fund for a minimum period of six months and applicants must have satisfactory evidence of the regular flow of income to guarantee loan repayment.
"Finally, these alternative options play an essential role in providing secure homes for Nigerians, you can become a homeowner through the "Rent to Own Property Ownership Scheme" facilitated by Legrande Properties Development Company Limited with little to no stress", he added.
