Co-operative Loans


A mortgage cooperative loan, also known as a co-op mortgage or cooperative mortgage, is a type of home loan that is used to finance the purchase of a co-op apartment. In a co-op apartment, multiple residents jointly own the building or complex, and each resident holds a share in the cooperative corporation that owns the property.

Unlike a traditional mortgage, where the borrower owns the property outright, with a co-op mortgage, the borrower is buying a share in the cooperative corporation that owns the building. This share entitles the borrower to a proprietary lease on a specific unit within the building.

Co-op mortgages typically have different underwriting criteria than traditional mortgages, since the lender is also evaluating the financial stability and creditworthiness of the cooperative corporation as a whole. The loan terms and interest rates may also be different from those of a traditional mortgage.

The FMBN Cooperative Housing Development Loan (CHDL) enables a co-operative society with unencumbered land titles to access construction finance and build houses for its members who must contribute to the National Housing Fund (NHF) Scheme. The loan window provides up to N500million at an interest rate of ten percent. Key features include tenors of up to 24 months with a moratorium of 12months. Once built, FMBN packages mortgage loans to enable the members to own the houses.

Under the scheme, FMBN would provide affordable housing estate construction finance through reputable developers under the Bank’s co-operative housing development loan portfolio.

The FMBN will provide mortgage loans of up to N15million to the members of the co-operatives at a nine percent interest rate per annum with tenors of up to 30 years depending on the contributors’ age through primary mortgage institutions.

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Equity Contribution - Pay Minimum of 30%

Depending on the selected unit type, the investor will be required to pay a minimum equity contribution of 30%. The equity contribution can be spread over a convenient tenure and frequency for the investor.

Retirement Savings Account (RSA) Funds – Access 25% of RSA funds

Collaboratively, we will liaise with you and your Pension Fund Administrators (PFAs) to facilitate the processing of 25% of your Retirement Savings Account (RSA) funds. These funds will be allocated towards the payment for your selected unit in the Bold Living 3 project.

National Housing Fund (NHF) Mortgage – Up to N50 million

Investors who contribute up to N25,000 per month to the NHF scheme can access the maximum mortgage amount of N50 million. Our team will provide investors with comprehensive guidance and support throughout the entire process, to ensure the successful acquisition of the NHF mortgage.