Starting from March 2, 1-homeowners will be able to use the Korea Housing Finance Corporation (HF)'s jeonse loan guarantee even if their combined annual income as a couple exceeds 100 million KRW or the housing price exceeds 900 million KRW.
HF Corporation announced on the 28th that from March 2, 1-homeowners with a combined annual income exceeding 100 million KRW or owners of houses valued over 900 million KRW, who were previously excluded from jeonse loan guarantees, will also be able to use the jeonse loan guarantee.
The jeonse loan guarantee is a guarantee product that allows customers to obtain loans by using the corporation's guarantee certificate as collateral when borrowing jeonse funds from financial institutions. The loan limit is determined in proportion to the corporation's jeonse guarantee limit, and customers bear the guarantee fee for using the guarantee.
This expansion of eligibility is a follow-up measure to the Financial Services Commission's work plan announced in January and will be applied equally to products from the Housing and Urban Guarantee Corporation (HUG) and SGI Seoul Guarantee. However, those owning two or more homes cannot use this service.
Choi Jun-woo, president of HF Corporation, said, “With this system improvement, we expect to lower the entry barrier for customers who could not use public guarantees, providing timely support to those with real demand for jeonse loans and contributing to housing stability.”
HF Corporation's jeonse loan guarantee is supplied in the form of entrusted guarantees through commercial banks and others, allowing customers to choose a guarantee product that meets their requirements when using jeonse loans. Therefore, detailed information such as loan interest rates should be confirmed through bank consultations.
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