Loan Limit ↑ 'Saengaechoecho Jutaekguip Bogumjari Loan' Launched … Korea Housing Finance Corporation, LTV 80%·Loan Limit Up to 420 Million KRW

[Asia Economy Yeongnam Reporting Headquarters Reporter Kim Yong-woo] A new BoGeumJaRi Loan for first-time homebuyers with significantly increased loan limits has been launched.

Korea Housing Finance Corporation (HF) announced on the 28th that starting from the 29th, it will launch the ‘First-Time Homebuyer BoGeumJaRi Loan,’ which allows citizens purchasing a home for the first time in their life to borrow up to 80% of the home price.

Currently, the LTV is applied at 55-70% depending on the location and type of the collateral property. The newly launched product raises the LTV to 80% for first-time homebuyers and accordingly increases the loan limit from 360 million KRW to 420 million KRW.

Previously, even for those purchasing their first home, a loan of up to 350 million KRW (LTV 70% applied) was possible for an apartment priced at 500 million KRW, but from now on, they will be able to borrow up to 400 million KRW (LTV 80% applied).

In addition, to receive the 80% LTV through the First-Time Homebuyer BoGeumJaRi Loan, borrowers must use HF Corporation’s ‘First-Time Special Purchase Fund Guarantee’ and meet the guarantee requirements.

The determination of first-time home purchase is based on the couple. Other loan conditions such as home price limit of 600 million KRW, annual income limit of 70 million KRW, and loan interest rates follow the same standards as the BoGeumJaRi Loan.

An HF Corporation official said, “We expect the First-Time BoGeumJaRi Loan to help real demanders such as young people who lack income and asset formation to secure their own homes,” and added, “We will continue to strengthen the public function of policy mortgages to alleviate the housing cost burden of real demanders.”