What is a housing guarantee for home builders?
- A guarantee product for home builders who seek to take out loans from financial institutions to build homes to lot out for sale or lease.
Product type
- Project Finance Guarantee
Guarantee for loans in the form of project financing from financial institutions to build homes to lot out for sale after construction. - Construction Loan Guarantee (NHUF Account)
Guarantee for loans from the National Housing Fund to build homes to lot out for sale or lease. - Construction Loan Guarantee (Bank Account)
Guarantee for loans from banks to purchase land and build homes to lot out for sale after construction.
Housing Guarantee Products for Home Builders
| Type | Project Financing Guarantee | Construction Loan Guarantee (NHUF Account) |
Construction Loan Guarantee (Bank Account) |
|---|---|---|---|
| Financing Source | Bank account | National Housing & Urban Fund Account | Bank Account |
| Timing of Lot-out | After completion (2/3of frame completed) Pre-sale(eco-friendly housing) |
Mostly after completion (Refer to product guide) |
After completion (2/3 of frame completed) Pre-sale (eco-friendly housing) |
| Private Use Area | At least 30% of total units should be less than 85㎡ each. |
Less than 85㎡ | No restriction (Speculation area: min. 50% of total units should be less than85㎡ each.) |
| Project Type | Lot-out | Lot-out rental | Lot-out rental |
| Purpose of Loan | Land purchase, construction, other expenses |
Construction | Land purchase, construction |
| Developer | SPC etc. | No restriction (Operator, project owner, unregistered operator) |
Meet at least one of the following. (Pre-sale: simultaneous satisfaction of both ① and ②) ① Credit rating at least BB+ ②Top200nationwide in construction capacity ③Developed or built at least300 units in last three years ④Affiliated company or builder meet one of the above and cosign |
| Builder | Meet both requirements. ①Credit rating at least BBB+ ②Top200nationwide in permissible contract amount |
No restriction | No restriction |
| Scope of responsibility of builder | Completion Guarantee etc. | Cosign | Cosign Completion Guarantee |
| Minimum no. of units |
200 in Seoul 300in Gyeonggi/Metropolitan cities 400 in other cities 100 in public housing site |
No restriction | No restriction |
| Approval requirement |
Business plan approved | Business plan approved | Business plan approved |
| Project site requirement |
Contract signed for all land and payment made | Land ownership obtained | Land ownership obtained |
| Loan limit site | 70% of total project cost (Sale after Building System: 80%) |
Amount calculated by a lending institution based on collateral value, or 70%of total project cost | |
| Guarantee limit | 90% of loan, no limit per unit | 90% of loan land collateral value | 90% of loan land collateral value, or 90% of loan |