HF lowers the thresholds for non-recourse loans

- Purpose of the loans is expanded and now available for temporary-two-house-owners

On July 22, Korea Housing Finance Corporation(HF, CEO Choi Joon Woo) announced the alleviation of the eligibility criteria for the ‘Non-recourse Conforming Loans’.

A limited recourse loan (or non-recourse loan) is a type of loan that limits a borrower’s liability to the mortgaged home, for which a lender cannot seek repayment beyond the collateral in the event of a default. HF first released the non-recourse Bogeumjari loans in May 2018 to support housing stability and economic recovery of the low-to-moderate income households and the end-users.

So far, non-recourse loan has been available only to first-time home buyers for home purchase purpose. But now the loan can be used for preservation purpose such as a return of rent deposit or redemption of other loans. 

In addition, the loan can be granted to those who temporarily own two houses, under the condition of disposing the old one of the two, and the collateral deliberation for the loan grant is exempted for row houses, multiplex, and detached houses.

HF CEO Choi commented, “In order to support the end-users who are having difficulties amid inflation and rising interest rates, we have alleviated the eligibility criteria of the non-recourse loans. We will not cease doing our utmost to serve our purpose as a policy institution for stable livelihood of the people and financial inclusion.”