To enhance home ownership among low income Nigerians, Affordable Housing Advocate, Mr Kunle Faleti, is calling for the establishment of Down Payment Assistance Grant in the country.
Describing it as a “forgivable loan”, he said it would help the citizens by reducing the time it takes to save for down payment.
Stating how it works, he said the down payment assistance would be provided in the form of a grant with a mandatory “affordability period” for the applicant to continue to occupy the house as their primary residence.
He pointed out that rising home prices, high mortgage interest rates, inflation, and inadequate supply have been leading to a slowdown in first-time homebuyers and overall homeownership rates.
According to him, both the Federal Mortgage Bank of Nigeria and Nigeria Mortgage Refinance Company (NMRC) must “as a matter of utmost urgency, come up with a Down Payment Assistance Loan Programme (in partnership with state / local governments and the private sector) that will offer the initial funding for the purchase of their first home, with forgiveness after 10 years.”
“The Down Payment Assistance Grant will be a true grant, meaning recipients/beneficiaries will never need to repay it. It will provide flexible gap financing for civil servants and private sector low income first-time homebuyers to purchase homes that are safe, decent and accessible,” he said.
“It’s about time housing “advocates” in Nigeria take up the fight for the rights of the undeserved segments in the housing market.
“It’s about time that the nation’s affordable housing crisis become a priority for policymakers, stakeholders and “advocates”, pointing out that tens of millions of Nigerians were struggling to pay their rent and were unable to explore homeownership opportunities.
According to him, high housing’s costs remained a significant challenge for households across the country. “Households across the country face the burden of rising costs as incomes have not kept pace with rapidly increasing housing expenses.
“Nigeria is blessed. Nigerian workers are hard-working people. Down payment and closing costs should not stand in the way of owning their dream home.
Most workers in the civil service are poorly paid, for no fault of their own. Consequently, making a down payment is a huge barrier to buying their first home.,” Faleti said.
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