Real estate developer Loan app: App download, Signup, Login, how to apply, Interest Rates, loan ussd code, customer care
Real estate investment has stood the test of time as one of the oldest and most lucrative sectors globally, with the 2020 market valued at a staggering $9.6 trillion. In Nigeria, real estate developer loans play a pivotal role in making quality properties more accessible, especially for developers eyeing promising land but lacking sufficient funds. In this blog post, we’ll delve into the intricacies of real estate developer loans in Nigeria, exploring eligibility criteria, application conditions, and the necessary documentation.
Understanding Real Estate Developer Loans in Nigeria:
Real estate developer loans in Nigeria are instrumental for property developers seeking financial support to acquire and develop potential lands. While established developers may find it easier to secure loans due to a proven track record, early developers face challenges in gaining trust from loan providers.
Conditions for Obtaining a Real Estate Developer Loan:
The Mass Housing Scheme (MHS), in collaboration with the Federal Mortgage Bank of Nigeria, oversees real estate developer loans in Nigeria. The following conditions must be met for eligibility:
- Loan Purpose:
- Residential housing estate development only, with a 10% per annum interest rate and a maximum tenor of 24 months.
- Infrastructure Financing:
- Private developers receive up to 70% financing for infrastructural facilities, while Housing Corporations and government-owned projects must provide 100% infrastructure.
- Title Requirement:
- The proposed estate must have a clear title that can be sub-leased to individual allottees/purchasers, ensuring legal authenticity.
- Affordability Criteria:
- Housing units must not exceed N5.0 million to cater to low-to-medium-income earners, aligning with National Housing Fund (NHF) guidelines.
- Buyer Commitment:
- Firm commitment from buyers/allottees is crucial, with an accredited Primary Mortgage Institution facilitating the introduction of the project to prospective buyers/allottees.
- Financial Projection:
- Developers must provide a financial plan and budget, including a 10% per annum equity participation in the project.
- Security:
- An acceptable bank guarantee serves as security for the loan.
Required Documents for Loan Application:
To streamline the loan application process, developers need to submit the following documents:
- Corporate Documents:
- Certificate of incorporation and Articles of Memorandum of Association.
- Financial Records:
- Audited Annual Accounts for the past three years, tax clearance certificates, and evidence of National Housing Fund registration.
- Project Information:
- Details of the proposed project, including location, type, and cost, along with a list of projects executed.
- Legal Compliance:
- Approved building and layout plans, resolution of approval from relevant authorities, and the company’s board resolution to borrow.
- Valuation and Feasibility:
- Valuation report, priced Bill of Quantities, feasibility and viability development report.
- Marketing Commitment:
- A letter of marketing commitment from a Primary Mortgage Institution.
Conclusion:
For registered property developers in Nigeria, accessing real estate developer loans is a viable avenue to fuel their investments. Understanding the eligibility criteria, application conditions, and preparing the necessary documentation will significantly enhance the chances of securing these loans. As the real estate market continues to evolve, leveraging the opportunities presented by developer loans can pave the way for sustainable and successful property development ventures.