The best housing finance institution that grows alongside the happiness of the people Institution that improves the quality of life by enhancing the housing welfare of people
- Issuance of MBS and MBB
- Supply of Bogeumjari Loan and Confirming Loan
- Guarantees for Housing finance
- Supply of JTYK
Established on March 1,2004,Korea Housing Finance Corporation(HF) is a State-Run Enterprise that Facilitates the Long-Term, Stable Supply of Housing Funds and Other Related Instruments, Thereby Promoting National Welfare and Developing the National Economy.
Committed to serving as a trusted partner for low-and middle-income families HF has wide-ranging housing finance operations including the supply of Bogeumjari Loan and Confirming Loan, the issuance of credit guarantees for housing finance and reverce annuity mortgages (JOO Taek YeonKeum), and the securitization of mortgage-backed claims and other instruments.
Long-term fixed-rate mortgage loans with principal and interest payments made in installments over a period of 10 years or longer, these instruments allow new homeowners to pay back their loans on a stable basis without the risk of interest fluctuations.
To help make good housing more widely accessible, HF issues letters of guarantee to eligible prospective home buyers to obtain chonsei loans or apartment installment payment loans from financial institutions. For home builders, HF issues letters of guarantees for loans to build apartment houses to promote housing construction.
HF helps improve the welfare of senior citizens by offering JTYK, which enables those aged at least 60 who own homes to put up their homes as collateral and receive monthly pensions from financial institutions for the remainder of their lives.
HF issues Mortgage-Backed Securities (MBS) and Mortgage-Backed Bonds(MBB) using mortgage loans transferred from financial institutions as the underlying assets and sells them to investors to raise long-term, low-interest capital from the bond market. This has greatly increased the availability of funds for loans.
(HF does not issue SLBS at the moment, because the student loan guarantee and other related works have been transferred to KOSAF, Korea Student Aid Foundation.)