The Family Homes Funds Limited (FHFL) has launched a home loans assistance programme targeted at Nigerians on low/middle income, offering them a low-cost, deferred equity loan for up to 40 per cent of the cost of their home.
The scheme targeted first time home buyers and individuals who can provide a deposit of 10 per cent of the purchase price, especially anyone who earns between N50,000 to N1.7 million yearly.
FHFL is currently working with state governments and private developers across the country to facilitate the construction of affordable homes for people on a modest income, who will offtake these homes with financial assistance through the Help To Own Programme.
Already, the Fund has reached an agreement with some mortgage and commercial banks to participate in the Help to Own (HTO) Fund. The scheme backed by African Development Bank (AfDB) has estimated that at least 3,750 new Help to Own mortgages will be supported through this proposed intervention by the partnership with AFDB), directly resulting in the creation of approximately 9,375 direct jobs and impacting at least 18,750 beneficiaries.
AfDB has approved financing of up to $60 million for Homes Loan Assistance Programme managed by the Family Homes Funds Limited (FHFL) with the support of the Federal Ministry of Finance, Budget and National Planning.
According to Mrs. Aisha Omar, Director International Economics Relations, who led the negotiations on behalf of the Minister of Finance, Budget and National Planning, Dr. Zainab Shamshuna Ahmed, the facility, will support the Federal Government’s efforts to promote access to affordable housing finance for low-income families through the Family Homes Funds.
In response to the approval by the AfDB Board recently, the Managing Director of Family Homes Funds, Mr. Femi Adewole, said, “We are grateful for the support this initiative has received from the minister and the AfDB management. It has been 18 months of tough and intensive engagement.
“However, we now have a big opportunity to execute a programme that will increase the volume and tenor of mortgage loans available in the market, deepen our housing finance system, improve access to decent housing and homeownership for people on modest incomes; significantly improving their quality of life.”
He also told participants at the forum organised by the Association of Housing Corporation of Nigeria (AHCN) recently, that “the assistance will reduce the mortgage repayment burden on eligible beneficiaries by 50 per cent. This is a subsidised loan with payments deferred for five years. As a subsidy, the key design issue is that it should be sustainable and stretch limited funds as far as possible without undermining affordability.”
The Fund has now completed 5,408 homes across eight states, with 9,148 under construction and another 13,543 commencing building works before December 2021.
FHFL is also implementing the Nigeria government’s National Social Housing Programme (NSHP) that will provide up to 300,000 homes and lead to the creation of 1.5 million jobs across the country.
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