Sometimes you might not have the capital to start a building project. The good thing is that you can always get a loan to build, but you must understand that collateral is always needed.
However, not everybody is comfortable with this arrangement. What becomes of you if you are unable to pay back? Let’s talk about other means to raise finance then you can choose the one most suitable for you.
1. PERSONAL SAVINGS
This is by far the most popular method to start a building project, there is no fear of creditors knocking on your door and it gives you rest of mind. Honestly, no matter how small your salary is, you can build a house if you set your mind towards it. There is always a case of you saving from whatever your income is. Study has showed that 30% of the moderate level of what we get monthly goes to buying very unimportant goods and junks. So you can cut unnecessary costly foods in costly restaurants. Sit down, make an inventory of wasteful spending and start saving 20% only of your income, no matter how small in 2 years you will start a home of your own, whatever you are able to save will be enough to start your house. Personal savings amongst others is the first option if you want to acquire a land and build a house.

2. WORKPLACE MORTGAGE AND LOANS
This is most attractive to workers that are planning to invest in Real Estate. Though it is mostly used for personal buildings, it is better for a young man or woman to build then rent it out and let then let the building pay for the loan back while you are collecting rent. Then you can use the dividends to finance another project.
The National Housing Fund remains the most attractive way for those who desire to build with loan especially the civil servants. It is designed by the government to aid the federal Mortgage Bank of Nigeria.
3. THRIFTS AND COOPERATIVES’ HOUSING SCHEMES
This method is becoming more popular among the young workforce and a lot of cooperative housing schemes are springing out daily. It employs the same old mode of operation, only that in this case you are expected to own a home. All members pull resources together to build houses for each member in areas of choice. This is an alternative to mortgage for the low income earners, who makes monthly minimal contribution overtime.

4. LAND SPECULATION & CAPITAL MARKETS
Have you moved into a developing area before, which is still full of vegetation? Within 3 months what you will notice is a surge in inflow of people to that location. As you have more traffic, the value of properties in that area will naturally increase, so when you are buying a land, why not make it two or more so that as you build one, the other plots will appreciate in value in order for you to sell them.
5. SOURCING OF LOAN FROM YOUR BANK
With consolidation of Nigerian Banks, there is money now available for business transactions, so banks these days are ready to loan you money to be able to complete your building, though this process is the most difficult because there are a lot of criteria for you to meet.