By YINKA KOLAWOLE, with agency reports

A total of 418 homeowners have so far emerged under the Lagos Home Ownership Mortgage Scheme (Lagos HOMS) with 34 winners emerging at the 8th edition of the monthly draw of the scheme recently held by the Lagos Mortgage Board.

Lagos HOMS was established by the Lagos State government to give certified residents of the state opportunity to buy houses and pay over a period of not less than 10 years under a mortgage scheme at 9.5 percent interest rate. Applicants must be first time buyers, 21 years old and above and tax compliant with proof of tax payment for 5 years. They must be able to make the 30 percent down payment (equity contribution) and meet their monthly repayments. At the launching of the scheme, Governor Babatunde Fashola, said “a home is not something you buy in one day but over time, in a way that your ability to acquire it is tied to your income and continued prosperity.”

However, to qualify to own houses under the scheme, an applicant is required to complete an application form in accordance with the instructions, pay the prescribed processing fee and collect a receipt after submitting copies of all necessary supporting documents to the Lagos Mortgage Board (LMB). The form can be submitted in person or online. Originals of supporting documents will be required for sighting for applicants who are successful at the monthly draw.

The board then processes the application form for pre-qualification and if the requirements are met, will assign a draw reference number to the applicant. After this, LMB will enter the applicant for the draws which are conducted periodically on announced dates, through a transparent, fair and well publicised process. Names of successful draw applicants would thereafter be forwarded by LMB to the Lagos Building Investment Company (LBIC) for mortgage processing. Successful applicants will receive an offer letter from LBIC, confirm acceptance and comply with the conditions set out, including the payment of a 30 percent initial deposit to LBIC within the period stipulated in the offer letter.

At the end of all these, the contract of sale and deed of mortgage are executed by signing by the applicant and the LMB/LBIC and the keys to the home are then delivered to the applicant.

Documents required with the application (for full or part-time employees) include: Two (2) passport-sized photos (with name and signature behind); Evidence of yearly payment of income tax for the last five years; Certified personal bank statement for the last six months; Pay slips for the last six months and; Last pay slip of previous employer (if applicant has changed jobs within the last year). Others are: Letter of reference from current employer confirming job title, status, annual salary & allowances and existing loans and/or obligations if any; Any evidence of additional income to service the mortgage; Proof of identity (Drivers license, Birth certificate, Passport, National ID card or Lagos State Residents Card, etc); Proof of residence in Lagos (Utility bill, Lagos State Residents Card, Tax card etc); Signed Memorandum of Acceptance (to be downloaded); Notorised Buyers Affidavit (to be downloaded) and; Any other supporting documents.