Korea Housing Finance Corporation (HF) announced on the 10th that, following the amendment of the "Special Act on Support for Jeonse Fraud Victims and Housing Stability," victims of jeonse fraud can now use the Bogeumjari Loan, a long-term, fixed-rate, installment mortgage loan, by using residential officetels as collateral.
When jeonse fraud victims use residential officetels as collateral for the Bogeumjari Loan, the housing price must be 900 million KRW or less. Additionally, the interest rate is preferentially applied compared to the general Bogeumjari Loan, currently ranging from a minimum of 2.95% per annum (10 years) to 3.25% (50 years).
The maximum loan limit is within 400 million KRW, with loans available up to 80-100% of the housing price. If the victim acquires the jeonse fraud victim's house through auction, loans up to 100% of the auction price are possible, limited by the court's initial appraisal value; otherwise, loans up to 80% of the housing price are available.
President Choi Jun-woo stated, “The Bogeumjari Loan was previously only available for houses, so even if recognized as a jeonse fraud victim, it was not possible to use the loan with officetels, which are quasi-housing. However, we have improved the system to support victims struggling due to jeonse fraud.”
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