Guarantee Provided for Those who Paid as Little as 5% of jeonse and Down Payment

Korea Housing Finance Corporation (CEO Joo-jae Lim) will substantially ease the guarantee requirements from February 17 in order to lessen the financial burden on low-income families that buy apartment units or lease jeonse houses.

So far, KHFC has provided guarantees to those who paid more than 10% of the down payment, but will change the requirement to cover those who paid 5% or more in order to lighten the financial burden on low-income households.

For example, a buyer who signs a contract for the purchase of an apartment unit is eligible for the guarantee of intermediate payments (including the Intermediate Payments Bogeumjari Loan) if he paid more than 5% of the down payment. Those who take out a lease on a jeonse house or apartment unit may also benefit from this program if they paid 5% or more of the down payment.

KHFC said, “We eased the requirements to help low-income families that are having difficulties with getting the down payment ready due to the recent economic recession. By lifting the load off the shoulders of the buyers or jeonse lessees initially, low-income families will see improved housing stability.”