Conventional loan Nigeria (2026) — localise the US phrase as a commercial bank mortgage (not government-subsidised NHF) or, looser, any non-subsidised bank term loan. Commercial home loans often need 20–30% equity, tenures ~5–20 years, and floating rates that sit far above NHF’s fixed ~6%.
Conventional = lender balance-sheet risk, full underwriting, market pricing. NHF = FMBN-backed for contributors. Unsecured personal loans are a different animal (no property equity, shorter tenor, higher risk pricing).
Commercial vs NHF vs personal
| Feature | Commercial mortgage | NHF | Personal loan |
|---|---|---|---|
| Equity | ~20–30% (higher diaspora) | Often lower; 0–10% bands on small tickets | None (unsecured) |
| Tenure | ~5–20y (some 25–30y bank-specific) | Up to ~30y | Short |
| Rate shape | Mostly floating ~18–28% market | Fixed ~6% | High unsecured |
| Speed | Weeks class | Can be months | Days–weeks |
Bank operational notes
FirstBank/Access-style sheets often cite ~20% minimum equity and completed residential stock in approved locations; joint applications with family can lift capacity. Title perfection (Governor’s consent, stamping, registration) is mandatory path to a legal mortgage — budget time and fees.
Documents
- ID, BVN, NIN, address proof
- 6–12 months payslips/statements or multi-year audited accounts
- Tax clearance / TIN
- Offer letter, title docs, valuation, approved plans/BOQ if build
- NHF contribution evidence if using that scheme
- Instalment after +3–5pp rate rise
- DTI under bank policy (~33–35% class)
- Title timeline risk before handover cash
- Bureau score readiness (two-bureau pulls)
NMRC refinances lender books to free long-term capacity — not a retail counter. See also floating ARM risk and amortisation schedules.
Bottom line: conventional = commercial mortgage economics. Prefer NHF if eligible; otherwise bring large equity, clean title, and rate-shock buffers.
Save every valuation invoice and Land Registry receipt; title perfection delays are among the top practical blockers after credit approval.