HF Eases Qualifications for Jeonse Loan Guarantees

- The guarantees are now available to couples with a combined annual income of KRW 100 million or more and owners of homes with a market value of KRW 900 million or more

Starting from March 2, 2023, households with a single home will qualify for HF Jeonse Loan Guarantees even if their combined annual income exceeds KRW 100 million or their home value exceeds KRW 900 million. 

Korea Housing Finance Corporation (HF, CEO Choi Joon Woo) announced on February 28, 2023, that starting from March 2, 2023, HF Jeonse Loan Guarantees will be available to single-home owning couples whose combined annual income amounts to KRW 100 million or more and homeowners* whose home’s market value is KRW 900 million or more. This change came after the release of the Financial Services Commission’s business plan this January. Korea Housing & Urban Guarantee Corporation (HUG) and Seoul Guarantee Insurance (SGI) are adopting the same change to their guarantee products.

 * Single-home owners only 

With the change, HF has removed the existing upper limit of combined annual income, relieving the housing and financing difficulties of double-income couples. 

HF CEO Choi said, “We expect that this institutional improvement has lowered the barriers to using state guarantees, contributing to more timely support for jeonse loan borrowers with real home demand and, in turn, greater housing stability.”

HF commissions commercial banks to offer its Jeonse Loan Guarantees so that borrowers can apply for the right type of guarantee when taking out a jeonse loan at the lenders. Borrowers can get further information, including the loan interest rate, during loan consultation at these financial institutions.