Nigeria Property Centre does NOT subscribe people to the HOMS Scheme. Visit the Lagos State Government website for details on how to subscribe.

The Lagos State Government unveiled a new Home Ownership and Mortgage Scheme (HOMS) which is aimed at aiding Lagosians acquire home. Further details of this scheme has been released and are listed in this article.

Feature of the Scheme

  1. 10 years minimum tenor  and maximum of 20 years
  2. An down payment of 30% of the cost of the property
  3. 70% facility contribution by participating banks with a 6% interest rate
  4. Fee of ₦10,000 (Civil Servant) and an admin charge of ₦25,000 (others)
  5. Repayment shall be an equal periodic principal repayment (Interest to be paid  on reducing balance) OR an equal monthly instalment of both principal and interest
  6. The Deed of Mortgage shall act as security over the property to be acquired

Eligibility Criteria for Qualification

  1. Applicant must reside in Lagos State
  2. Applicant must be under 60 years of age
  3. Applicant must have a verifiable means of income
  4. Applicants should be credit worthy
  5. Successful Applicants are expected to pay 30% of the value of the house they intend to purchase
  6. Houses purchased under the scheme must be occupied by the beneficiary and cannot be transferred or rented out until all obligations has been fulfilled
  7. Beneficiaries are to pay 6% interest rate on the mortgage loan
  8. Applicants must have been working for his/her current employer for at least six months (and must be confirmed by employer)
  9. Applicants must be first time home buyers

Application and Approval Process

  1. Interested Applicants must obtain a form from Ministry of Housing or download form from the Lagos State Government website.
  2. Applicants should fill the form and submit to Ministry of Housing accompanied with payment of N1,000 for  the Application Form.
  3. Applicants who have submitted his/her application forms will be directed to any of the three receiving banks   for pre-qualification.
  4. All Applicants pre-qualified and recommended by any of the receiving Banks will be issued with Letter of Offer.
  5. Applicants are expected to pay the 30% equity contribution to any of the three collaborating banks.
  6. Applicants to submit proof of payment and an acceptance Letter to Ministry of Housing.
  7. Ministry of Housing refers documents to Ministry of Justice to prepare and execute Contract of Sales and Deed of Mortgage Agreements.
  8. The Ministry of Housing then releases the Letter of Confirmation of Allocation and keys to successful Applicants.

Pre-Qualification/Screening Process

  1. Lagos State Government will first pre-qualify the intending beneficiary who must a first time home owner in Lagos State and the claim of first time home ownership must be administered under an Oath.
  2. The pre-qualified individual must open an individual current account with Bank. The account will serve for both the purpose of paying 30% equity contribution and also for monthly repayment.
  3. The beneficiary will submit his\her allocation paper from LASG to the bank along with request letter and apply for a mortgage scheme under Lagos State Home Ownership Mortgage Scheme.
  4. Upon meeting the Risk Acceptance Criteria tabulated below, approval will be conveyed via an offer letter and monthly repayment schedule communicated to the beneficiary.
  5. For proof of affordability, salary earners are to submit pay slips for  the past 6 months and salary account statement for the past one  year while self-employed would submit company profile, three years audited account statement and business\personal account  statement for the past 12 months.
  6. Monthly repayment as stated in the repayment schedule commences as soon as offer is accepted and condition precedent to commencement of monthly repayment is met.
  7. The Bank will communicate acceptance and approval to LASG for release of Keys to the beneficiary to take possession.
  8. Update on monthly repayment will be given to LASG on monthly basis.
  9. A dedicated account will be opened which will warehouse all monthly payment from the buyers which would have joint signatories from the Ministry of Housing & Ministry of Finance.

Global Terms Sheet


This term sheet tends to provide a standardization for administering the Lagos State Home Ownership and Mortgage Scheme to all residents of Lagos State. Though priority will be given to Civil Servants in Lagos State Ministries and Parastatals, the target market is all residents of the state (irrespective of tribe), that is Lagosians.

The purpose of the scheme is to encourage first time home buyers with verifiable source of income to own their own houses.

To administer this scheme for LASG, three banks have been nominated; FBN Mortgages, Skye Mortgages and Zenith Bank Plc.

Definition of Risk Acceptance Criteria: For the purpose of this term sheet, the table below spells out the risk acceptance criteria for effective administration of the scheme which will be adopted by the participating banks involved.

Risk Acceptance Criteria

Term Sheet Global Administration of Mortgages for Lagos State Home Ownership & Mortgage Scheme.
Originating Business Offices Lagos State Government & the following banks (FBN Mortgages, Skye Mortgages and Zenith Bank)
Term Sheet Description The Term Sheet provides standardization for administering mortgages for the scheme.
Target Market Salary Earners with minimum monthly net pay of ₦70,000.00.
Self Employed: For this scheme, a self-employed is an individual who has been engaged in a productive vocation for a reasonable time.  Such persons must be a business owner, Founder, Director, Chairperson or President of such business/enterprise. Professionals that have been engaged as consultants (IT, HR, Medical/Doctors that owns a clinic or lawyers/Realtor that own firms will also qualify e.g. Business Owners, Founder, Director, Chairperson/President of business/enterprises, Professionals who have been engaged as consultants (e.g. IT consultants, HR consultants, Lawyers, Realtors, Medical Doctors, qualified Accountants, Stockbrokers etc).
Equity Contribution 30% (Minimum)
Tenor Up to 20 years subject to age. (Max. tenor is 60 minus present age)
Interest Rate:
6% p.a  ₦25, 000.00 flat (one-off) Lagos State Civil Servants
  1. Original Title Document resides with Lagos State Government until full payment for the house is fully paid by the beneficiary.
  2. Mortgage Protection insurance
  3. Fire & Special Peril Insurance
  1. For Civil Servant with LASG, there shall be an undertaking to deduction at source from their payroll and remit directly to us
  2. Salary Earners that are not LASG civil servant will domicile salary account with Bank and or irrevocable Standing
  3. Payment Order to transfer monthly repayment amount from salary account to his/her Bank account.
Valuation of Properly The valuation will be done by LASG
Legal Documentation This will be prepared by LASG
Payment to   Income
  1. For Salary Earners , Payment to Income Ratio should not exceed more than 33.3%
  2. For self-employment total monthly turnover from the business should be five times the monthly repayment.
Approval Limit Approval for each request resides with the Management of the banks and not with the Lagos State Government


The Lagos HOMS is a mortgage scheme that is completely funded by the Lagos State Government. Apart from providing the pool of Houses, Government also provides the funds for the mortgage facility being granted.

Default Events

A beneficiary is considered to have defaulted:

  1. If the beneficiary fails to make repayments for three consecutive times.
  2. If repayment has not been regular and there been defaults at three different times which in the opinion of the banker has raised doubt on the ability of the beneficiary to continue with the repayment, such issues will  be reported to LASG who will take steps towards foreclosure.

Foreclosure Security

The interest on the properties resides with Lagos State Government, hence the right to foreclose lies with them.

Repayment Monitoring and Tracking

This shall be the joint responsibilities of LASG and Bank. Bank on a monthly basis will be updating LASG on the repayment update that shall aggressively follow up with any loan defaulters for regularization.

Repayment Acceleration

This shall be allowed so far 90 days’ notice is given which shall also be communicated to LASG.

Available Properties Under This Scheme

  1. Millennium Housing Scheme Iloro Agege – 3 Bedroom flats.
  2. Oba Adeboruwa Estate Igbogbo Ikorodu – 1, 2 & 3 Bedroom flats.
  3. Millennium Housing Scheme II Ojokoro Ijaiye – 3 Bedroom flats
  4. Jubilee Housing Estate Odoragunshin Epe – Room & Parlour, 1 & 2 Bedroom Bungalows.
  5. Oba Adeboruwa Estate Igbogbo Ikorodu – 1, 2 & 3 Bedroom  flats.

Source: Lagos State Government Website

Nigeria Property Centre does NOT subscribe people to the HOMS Scheme. Visit the Lagos State Government website for details on how to subscribe.

What do you think about this scheme? Drop a comment below.

View more property news from Lagos.