The mortgage banking sector in Northeast Nigeria plays a pivotal role in addressing housing deficits and promoting economic development. However, funding constraints significantly hamper the sector's performance. This study examines the nature, causes, and implications of funding challenges faced by mortgage banks in the region, with an emphasis on how these constraints affect their operations and market performance. The study employs both qualitative and quantitative methods, drawing on primary data from industry stakeholders and secondary data from regulatory reports using a sample of one thousand two hundred (1, 200) respondents from the targeted population from four northeast states while data were analyzed through the use of Pearson Chi-Square statistic and Spearman’s rank correlation. Findings reveals that inadequate access to affordable long-term capital, high-interest rates, limited Access to Mortgage Refinancing and poor regulatory support are key impediments. Policy recommendations include enhancing government-backed mortgage refinancing schemes, creating alternative funding sources, and improving financial infrastructure.