4 MORTGAGE OPTIONS FOR FAMILIES LOOKING FOR A HOME

Affordable housing for families. Preferential mortgage programs.

No family doesn’t dream of having a beautiful home. The major thing stopping that dream most times is the price. 

A quality home doesn’t come cheap, especially in a city like Lagos. You have two options; either settle for what your budget can afford or spend more to get the home you want. 

Not everyone can afford that luxury. Besides, with the current inflation, prices keep going up, making it harder to save. It’s almost as if there’s no way out. 

If you fall under the category of people affected by the problem above, this blog post is for you. In this blog post, we found some options aspiring homeowners can explore to achieve their dream of homeownership.

 

UNDERSTANDING YOUR OPTIONS 

 When it comes to financing your home purchase, you have several options to consider. Mortgages are among the most common ways to finance a home, and for good reason. They allow you to spread the cost of your home over time.  

Although you can still enjoy this feature if you get a deal that offers you a convenient payment plan, most people hardly find deals like that, making mortgages the easiest route to homeownership. 

  

TYPES OF MORTGAGES 

 As an individual who wants to use a mortgage plan to secure your first home, you should be aware of the mortgages you can use, and the opportunity they offer. 

We made a list of some below. 

  1. Conventional Mortgages: These are traditional mortgages offered by banks and lending institutions. They typically require a down payment of at least 20% of the home’s purchase price, but some lenders may accept lower down payments.

    

  1. FHA Loans: Backed by the Federal Housing Administration, FHA loans are designed to help first-time buyers and those who aren’t credit-worthy. They often require a down payment as low as 3.5% of the purchase price, making them an attractive option for many buyers.

  

  1. VA Loans: If you’re a veteran or active-duty service member, you may qualify for a VA loan, which is guaranteed by the Department of Veterans Affairs. VA loans often require no down payment and have competitive interest rates, making them a fantastic option for eligible buyers.

  

  1. Lagos State Government Housing Schemes: The Lagos State government offers various housing schemes and initiatives aimed at providing affordable housing options to residents. These programs may include low-interest mortgages, down payment assistance, and subsidies for qualified buyers.

 

TIPS FOR SECURING A MORTGAGE   

  1. Check your creditworthiness:  In Nigeria, the concept of credit scoring is not as pervasive or standardized as it is in some other countries like the United States. However, credit assessment processes do exist, especially within the banking and financial sectors. 

Instead of relying solely on credit scores, Nigerian financial institutions typically assess individuals’ creditworthiness based on various factors such as:  

Bank Account History: Banks often review applicants’ banking history, including the duration and activity of their accounts, to gauge their financial behavior. 

 Employment Status and Income: Lenders may consider applicants’ employment status, income stability, and monthly earnings to assess their ability to repay loans. 

 Collateral: Secured loans, where collateral is provided, are common in Nigeria. Lenders may be more willing to extend credit if applicants offer valuable assets as security. 

 References and Guarantors: Some lenders may require references or guarantors who can vouch for the borrower’s creditworthiness and ability to repay the loan. 

 Reputation and Relationships: Building a positive relationship with a bank or financial institution over time can also influence credit decisions.   

  1. Save for a down payment:  

While some mortgage options offer low down payment requirements, having a larger down payment can reduce your monthly payments and potentially save you money in the long run. 

  1. Get pre-approved:  

Before you start house hunting, consider getting pre-approved for a mortgage. This will give you a better understanding of how much you can afford to borrow and make your offer more attractive to sellers. 

Securing a mortgage doesn’t have to be overwhelming. With the right knowledge and preparation, you can find a mortgage option that suits your needs and helps you achieve your dream of homeownership. Or, you can skip all these processes and get an affordable home in Ajah, Lagos for an unbeatable plan.  

We already have prices that are below the prevalent market plans, and with our payment plans, you’ll be a homeowner in no time. 

 Contact us at Meridian Park Estates to learn more about our affordable housing options and how we can help you find the perfect home in Ajah. 

  

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