HF Group – Housing financing company, commercial bank Kenya offering integrated solutions for real estate development, mortgage loan, property insurance. Touted as one of the best ways to acquire a house, mortgage financing in Kenya excludes the larger majority of the ‘middle class’ with some banks asking for a monthly net income of Sh100,000 to qualify for one. … You can also pay Sh59,979 for 15 years or Sh55,019 for 20 years — the maximum repayment period for the bank.

Here is a list of different types of Housing Finance Loans in Kenya. Housing Finance Group Limited (HF Group) is one of the largest mortgage finance providers in Kenya.

It was founded in November 1965 and is the only mortgage company in Kenya regulated by the Central Bank of Kenya (CBK), the central bank and National Banking regulator.

Housing Finance’s interest rates varies depending on the type of loan one wishes to apply.

Different Types of Housing Finance Loans in Kenya

1. Construction Loan

This type of loan is given to plot owners who want to build residential houses on their plots.

Requirements

  • Building plans that have been approved.
  • Proof of applicant’s contribution.
  • Bill of quantities.
  • Agreement with the contractor.
  • Profiles of Structural Engineer, Contractor, Quantity Surveyor, Architect or Project Manager.
  • Professional insurance of the engineer and the Architect.

Features

  • Maximum amount of loan to be issued is up to 90% for owner occupier and 70% for rental units or investment units.
  • During the building period, clients will only pay interest for a duration of 12 months.
  • For employed clients, their maximum loan term will be up to 20 years and for SMEs up to 10 years.

Benefits

  • Housing Finance will offer construction monitoring services.
  • Clients will only pay interest when the construction is still taking place.
  • Ingress to in-house construction management team at Housing Finance.
  • Altering of loan to long-term mortgage upon completion of the units.

Fees & Rates

  • 1.5% commitment fee.
  • 0.5% valuation fee.
  • 1-2% legal fees.

2. Makao Home Loan

This type of loan is issued to clients who own a plot and would like to develop it in a conveniently and cost-effectively manner.

Requirements For Persons Who are Employed

  • Copies of National ID/Passport.
  • Copy op KRA PIN certificate.
  • Pay slips for the last 3 months.
  • Bank account statements for the last 6 months.
  • Well drafted letter from employer.

Requirements for Persons who are Self-Employed

  • Copies of National ID/Passport.
  • Copy of KRA PIN certificate.
  • Probed books of account for the last 3 years.
  • Bank statements for the last 1 year (12 months).
  • Copies of rental schedules for house owners and partnership deeds for partnerships that have been certified.

Features

  • Up to 100% financing, opening of Makao account.
  • Accessibility to over 50 designs.
  • Clients given the option of choosing either Cash Makao or Makao Home Loan.

Fees and Rates

Makao Home Loan

  • 1.5% commitment fees.
  • 1% site inspection fee.
  • 3.5% commitment fee on loan approved/construction costs.
  • 0.1% stamp duty fee.
  • Ksh. 5,000 for statutory costs for approval of documents and drawings.
  • This makes the total fees to amount up to 2.5%.

Makao-Cash

No loan is given but HFC uses the client’s money to facilitate the construction.

  • 2.5% site inspection fee.
  • 10% fees of construction cost.

Benefits

  • Process is hassle free.
  • Process is Convenient.
  • Providing end to end solution for building.
  • Easy access to professionals who are always available.
  • Provision of designs for more than 50 houses.

3. Single Unit Development Loan

This type of loan is issued to clients who want to construct single uniyes for themselves or for rental purposes.

Features

  • Repayment period of 4 to 6 months for short term loans.
  • Customers have an existing plot with legit ownership documents.
  • Project costs will be financed up to 70%.
  • Construction loan can be turned into a mortgage payable under negotiated duration not surpassing 10 years.

Benefits

  • Processing of loans is very fast.
  • Interest is only paid on the issued loan amount during the building period.
  • Easy access to in-house construction professional team.
  • Staff of HFC are well experienced, flexible and reliable.
  • Availability of pool of professionals through Housing Finance group partners.

Requirements

  • Building plans that have been approved with supporting bills of quota.
  • Copy of title deed.
  • Copy of certificate of registration.
  • Copy of articles of association and memorandum.
  • PIN and IDs or directors.
  • Proof of project contribution.
  • Profile of project experts.
  • Environmental impact evaluated report that has been approved.

Fees and Rates

  • 1.5% commitment fees of the loan amount.
  • 10% excise duty of the commitment fees.
  • Ksh. 15,000 inspection fee depending on the location of project.

4. Multi Development Loan

This type of loan is given to customers who want to construct multiple residential houses or commercial properties either for rental or sale.

Features

  • Project cost financed up to 70% minus land.
  • Construction loan can be turned into a mortgage payable under negotiated duration not surpassing 10 years.

Benefits

  • Processing of loans is fast.
  • Interest is only paid on the issued loan amount during the building period.
  • Easy access to in-house construction professional team.
  • Staff of HFC are well experienced, flexible and reliable.
  • Availability of pool of professionals through Housing Finance group partners.

Requirements

  • Building plans that have been approved with supporting bills of quota.
  • Copy of title deed.
  • Copy of certificate of registration.
  • Copy of articles of association and memorandum.
  • PIN and IDs or directors.
  • Proof of project contribution.
  • Profile of project experts.
  • Environmental impact evaluated report that has been approved.

Fees and Rates

  • 1.5% commitment fees of the loan amount.
  • 10% excise duty of the commitment fees.
  • Ksh. 15,000 inspection fee depending on the location of project.

Housing Finance Group Contacts

Head Office : Rehani House, Kenyatta Avenue / Koinange Street
Mobile Number : 0709 438 000 and 0709 438 888
Toll Free Number : 0800 721 400