Wisdom is a shelter, as money is a shelter, but the advantage of knowledge is this: that wisdom preserves the life of its possessor. To own a house you can call your own, you need money. You need money to buy the land. You need money to buy the building materials and to pay workers.


  • The tight time to begin to save money now.
  • Save, no matter how small the income you earn
  • Try to commit new salary increments into savings project.
  • Save, no matter how small you are able to save
  • Take away the amount for saving before you begin to spend the balance..
  • Keep the saving where you cannot easily use it.
  • Investing in money-yielding projects is also another form of saving.
  • Pay-slip deduction savings is one of the best where available. Savings under well-managed staff co-operative societies is also advisable.
  • Set some money aside no matter how small as a point of contact for the total sum you need for your own house.
  • Join a contribution system with other people you can trust.
  • Explore all the opportunities available to you where you work or belong.


  • Raise money through loan from friends, family members, a bank and other sources (with little or no interest if possible).
  • Raising money outside your income means borrowing and borrowing mean! getting into debt.

There is a wise advice in “Retire Young Retin Rich” by Robert T. Kiyosaki. He says that “we should treat debt as we would a loaded gun, very carefully”. There are good debts and there are bad debts. Borrowing money to build your own house, to me, is a good debt provided the money will be well managed during the building project. (If you allow contractors and other workers to defraud you of the money then it may become a bad debt after all).


This section is very important because I have seen people who do not know anything about the banks and do not have any type of relationship with the banks. They just wake up when they have a need and expect to get a loan from the bank. This is rarely possible but for very few exceptions. The followings are some of the things that quality you to borrow money from the bank.

  1. You must have a current account with a bank.
  2. How well you operate the account, that is how much and how often you pay in and withdraw from your account is very important.
  3. How long you have operated the account is also important. For individuals who are not public figures, the minimum may be up to three months.
  4. Your experience in your project. (In this case, what you know about land, properties and building).
  5. The total cost of the project and how you arrived at this. (For the purpose of getting a bank loan, you may need a quantity Surveyor’s estimate. But if you are financing your project yourself, you do not need this so that you don’t get intimidated and discouraged.
  6. How much you are willing to put into the project yourself. (You must show enough commitment. As must as 20 percent or more may be required from you).
  7. How you intend to pay back the loan and for how long are also important.
  8. The title to the land is very important Banks normally ask for Certificate of Occupancy or Deed of Assignment of sub lease.
  9. Approved building plan is necessary so- that Government will not pull down the building after work has commenced.
  10. You must have collateral security. The building could be used. But an alternative security will be of more interest to banks.


  • It is a housing loan facility established vides NHF decree of 1992.
  • It is managed and administered by the New Federal Policy of Nigeria (FPN) which collects the NHF contributions from sources specified in the Decree – Collections commenced 1992
  • Loan disbursement commenced in June, 1997.
  • Applications for loan are made through accredited Primary Mortgage Institutions (PMIs)
  • Loans approved are also disbursed through Primary Mortgage Institutions. The fund is open to all Nigerians contributing to it.
  • A contributor may borrow up to N5 million
  • Contributions plus interest are refunded to contributors on withdrawing from the fund at the prescribed time.
  • Loan attracts 6% interest, the cheapest long term loan facility available in Nigeria.
  • You can build a house with the loan at any location of your choice in Nigeria. You can also buy an existing house, expand or renovate a house you already own with the loan
  • The building is the security for the loan Your next of kin will enjoy all the privileges and rights associated with the loan in case of death.


  1. Applicant must be a Nigerian.
  2. Account relationship with accredited Primary Mortgage Institution (PMI) must be operated for a minimum of 6 months
  3. Be a contributor to the fund for at least 6 months
  4. Have satisfactory evidence of regular flow of income to guarantee loan repayment
  5. Submit photocopies of valid title documents (e.g. The C of O)
  6. Approved survey plan
  7. Approved building plans
  8. Priced bill of quantities in case of construction/renovation
  9. Valuation report prepared by a firm of registered Surveyors and valuers where applicable.
  10. Offer letter (in case of completed property for purchase).
  11. A registered self employed person must submit a copy of certificate of registration or three years Tax Clearance Certificate
  12. Purchase NHF application form on which to formally apply.


One of the steps to financial freedom is to have a planned expenditure programme. Most people only WISH to build their own house but would not set any money aside and never think about opening a Project Account.


If you truly desire a house of your own, don’t leave it to chance. Deliberately open a project account and determine how much you will set aside toward this project on a regular basis.


The scripture says “the deep calls upon deep”. This amount in your project account will call up the rest of the amount you need to achieve your desire for a house of your own. With the money you have set aside regardless of how much it is, you are ready to take the next step.

 Asking Vital Questions

You will need to ask questions about:

  • Where and how to get a land to buy. Where and how to make enquiries about the land and the vendor.
  • Methods of verifying claims by land vendors and land agents.
  • The area and location with respect to development.
  • The price for land and other payments. Anything you may wish to know. The more questions you ask the more answers you will get.