Housing Finance Corporation Launches 'Saengae Choecho Jutaek Guip Bogeumjari Loan' for First-Time Homebuyers

[Asia Economy Reporter Eunju Lee] Korea Housing Finance Corporation announced on the 28th that starting from the 29th, it will launch the ‘First-Time Homebuyer Bogeumjari Loan,’ which allows first-time homebuyers to borrow up to 80% of the housing price.

Currently, the LTV is applied between 55% and 70% depending on the location and type of the collateral property, but for first-time homebuyers, the LTV will be increased to 80%, and accordingly, the loan limit will be expanded 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 when buying an apartment priced at 500 million KRW, but going forward, they will be able to borrow up to 400 million KRW (LTV 80% applied).

In addition, to receive the LTV 80% 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 first-time home purchase status is determined based on the couple, and other loan conditions such as housing price limit of 600 million KRW, annual income of 70 million KRW or less, and loan interest rates follow the same standards as the Bogeumjari Loan.

An official from HF Corporation stated, “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 for real demanders.”