Lagos has two state routes to owning a home, and both look cheap on paper. LagosHOMS lends at about 6% a year over 10 to 20 years, but you must put down 30% first. Rent-to-Own needs only a 5% commitment fee and lets you move in, then you pay the balance as rent over 10 years. On a ₦55,000,000 (~$39,700) home, that is ₦16,500,000 (~$11,900) upfront for HOMS or ₦2,750,000 (~$2,000) for Rent-to-Own. (Figures at ₦1,385/$, October 2026.)
Update, 7 October 2026: We first published this page in March 2025 as a short piece on the Lagos housing budget. We have rewritten it after BusinessDay reported on 4 October 2026 that interest in LagosHOMS is still low even though its 6% rate is a fraction of the 20% to 27% banks charge. Every rule below is checked against the official LagosHOMS site, and we removed older figures we could no longer confirm.
What is LagosHOMS, and how is it different from Rent-to-Own?
LagosHOMS (the Lagos Home Ownership Mortgage Scheme) is a state mortgage for first-time buyers, run since 2014. Rent-to-Own sits on the same website and is run by the same Lagos State Mortgage Board, but it works differently: you pay less to get in, and you live in the home while you pay it off.
Here is the side-by-side, using only terms we could confirm.
| Feature | LagosHOMS mortgage | Rent-to-Own |
|---|---|---|
| Upfront payment | 30% equity | 5% commitment fee |
| Interest rate | About 6% a year | Not published on the official site |
| Repayment period | 10 to 20 years | 10 years |
| Affordability test | Credit appraisal after the draw | Repayment no more than 33% of monthly income |
| How you are picked | Pre-qualification, then a public draw | Online or in-person application |
| First-time buyers only? | Yes | Yes |
Sources: lagoshoms.gov.ng eligibility and Rent-to-Own pages (opened 7 October 2026); rate and tenor from BusinessDay, 4 October 2026.
Who qualifies for LagosHOMS and Rent-to-Own?
You qualify if you live mainly in Lagos, have never owned a home, are tax compliant and can pass the affordability check. The official pages are specific, and the details catch people out.
- Lagos residence. You must be “primarily resident in Lagos State” and may be asked for your Lagos State Residents Registration (LASRRA) card.
- First-time buyer. If you apply with a spouse or partner as co-applicant, both of you must be first-time buyers, and you take joint title.
- Tax records. HOMS asks for proof of tax payment for the last five years. Rent-to-Own asks for proof of tax compliance.
- Age. Rent-to-Own applicants must be 21 or older.
- Income. Rent-to-Own repayments cannot be more than 33% of your monthly income. HOMS checks whether you can fund the 30% deposit and the monthly repayments after you win the draw.
How does the LagosHOMS process actually work?
It is a queue with a lottery in the middle. You submit the form and documents with a processing fee, wait up to 30 days for pre-qualification, receive a draw reference number, then attend a public draw. Only winners move on to mortgage processing with the state’s partner, LBIC.
- Complete the application form and attach the documents it lists.
- Submit it to the Lagos State Mortgage Board with the processing fee.
- Wait for pre-qualification (the board says up to 30 days).
- Get your draw reference number and draw date.
- If you win, go through credit appraisal for the 30% deposit and repayments.
- If you lose, you can reapply, but the processing fee is charged again each time.
The site does not publish the processing fee amount. Ask the board directly before you pay anything, and pay only into official channels.
Watch out: The official site states that only the Lagos State Mortgage Board handles the scheme and warns against third-party agents. Anyone who offers to “fast-track” your draw or sell you a guaranteed HOMS slot is not part of the process.
What will it really cost you each month?
This is the part most guides leave out, and it is why uptake is low. A cheap rate does not help much when the house price is high. BusinessDay put average two-bedroom bungalow prices in Lagos at ₦55 million to ₦120 million (~$39,700 to ~$86,600) in its 4 October report. Here is our own arithmetic on two of those numbers. These are illustrations, not quotes from the scheme.
| Example | Cost (₦) | ~ USD |
|---|---|---|
| Home price (low end of BusinessDay average) | ₦55,000,000 | ~$39,700 |
| HOMS 30% deposit | ₦16,500,000 | ~$11,900 |
| HOMS monthly repayment, ₦38.5m at 6% over 20 years | about ₦276,000 | ~$199 |
| Income needed if repayment is one third of income | about ₦830,000 a month | ~$600 |
| Rent-to-Own 5% commitment fee | ₦2,750,000 | ~$2,000 |
| Rent-to-Own balance spread over 10 years, before any interest | at least ₦435,000 a month | ~$314 |
| Income needed to pass the 33% test on that floor | at least ₦1,320,000 a month | ~$953 |
Two things jump out. First, Rent-to-Own is easier to get into but heavier to carry, because the balance is squeezed into 10 years. Second, the HOMS deposit is the wall. Saving ₦16.5 million is out of reach for most of the salaried workers the scheme is meant for, which is exactly the problem the people BusinessDay spoke to describe.
Look, if your income is close to these lines, the scheme is not a dead end. It means you should know your numbers before paying a processing fee you may have to pay again.
Buying through a state scheme still needs checks. Our free Land Verification Checklist covers the title, survey and allocation papers to confirm before you hand over a deposit.
Can Nigerians abroad apply?
In most cases, no. Both schemes require you to be primarily resident in Lagos, and HOMS wants five years of tax records. If you live abroad, look at the federal route instead: our guide to the FMBN diaspora mortgage explains who that covers. If family in Lagos plan to apply in their own name, they must meet every rule themselves, and the home will be theirs.
Also this week: LSDPC now takes payments online
Separately, the Lagos State Development and Property Corporation (LSDPC), which sells its own estates, launched an online payment platform called PayPortal, BusinessDay reported on 6 October 2026. Its managing director said payments had long needed customers to deal with the corporation physically. For buyers abroad paying for an LSDPC unit, an official portal with instant confirmation is safer than handing cash to a middleman. Confirm the portal address on LSDPC’s own channels before you pay.
What to do this week
- Work out 30% and 5% of the price of the home you want, and the monthly figures, before you apply.
- Gather proof of Lagos residence and your tax receipts (five years for HOMS).
- Ask the Lagos State Mortgage Board for the current processing fee and the price list for homes on sale.
- Apply only through lagoshoms.gov.ng or the board’s office, never through an agent.
- Compare with other routes in our guide on how to finance a house purchase in Nigeria and the Renewed Hope homes sales.
Frequently asked questions
What is the LagosHOMS interest rate?
About 6% a year, according to BusinessDay’s October 2026 report, against 20% to 27% at commercial banks. The tenor is 10 to 20 years, and you pay 30% of the price upfront, for example ₦16,500,000 (~$11,900) on a ₦55,000,000 (~$39,700) home.
How much is the Rent-to-Own down payment in Lagos?
5% of the home’s price, which the scheme calls a commitment fee. On a ₦55,000,000 (~$39,700) home that is ₦2,750,000 (~$2,000). You then pay the rest as rent over 10 years.
Do I need to be a first-time buyer?
Yes, for both schemes. If you apply with a co-applicant, both of you must be first-time buyers and you will hold joint title.
What happens if I lose the LagosHOMS draw?
You can apply again without resubmitting documents unless your details changed, but you pay the processing fee each time you reapply.
Is LagosHOMS worth it?
If you can raise the 30% deposit, a 6% loan is far cheaper than any bank mortgage in Nigeria. If you cannot, Rent-to-Own gets you in for 5%, but expect monthly payments of at least ₦435,000 (~$314) on a ₦55 million home before interest.
Weighing a state home against buying land and building? Feasibility Studio will run the numbers for small builds. It launches soon.
Sources and methodology
- Lagos State Mortgage Board, HOMS eligibility criteria, Rent-to-Own eligibility criteria and What is Rent-to-Own, opened 7 October 2026.
- BusinessDay, “Why homebuyers’ interest in Lagos mortgage remains sub-optimal despite low interest rate”, 4 October 2026 (rate, tenor, bank rates, house prices).
- BusinessDay, “Homebuyers gain as LSDPC launches digital platform”, 6 October 2026.
- Monthly repayments are our own calculation (standard amortisation, 6% a year, 240 months). Rent-to-Own figures are a zero-interest floor because the scheme does not publish its rate.
- Dollar figures at ₦1,385/$, the parallel-market selling rate reported for 1 October 2026.
Last updated: 7 October 2026. We will recheck the scheme terms in January 2027. Journalists and researchers may cite this with attribution to LandsofNigeria.com.
