Preferential Guarantee for Families with More than 3 Children

Those families with more than 3 children that obtain a loan from financial institutions with a KHFC’s guarantee will benefit from a higher guarantee limit and lower guarantee fee.  

Korea Housing Finance Corporation (CEO Joo-jae Lim) announced that such special assistance will be provided to those families with more than 3 children from April 22 to help them procure housing and living stability. The program is limited to those families with 3 children or more under the age of 20.

Until now, the guarantee limit for jeonse funds was confined to 1 to 2 times the annual income based on the ability of that individual to make repayments. Under this program however, eligible families will benefit from up to a 50% increase, from 1.5 to 2.5 times the annual income. Home buyers will also see a KRW 10 million increase in the guarantee limit in accordance with their credit ratings.

For instance, when families with an annual income of KRW 28 million uses the jeonse guarantee program, they were only able to obtain a loan for up to KRW 56million before the program was introduced. Now, they can borrow up to KRW 70 million.

KHFC anticipates that those families with 3 or more children will benefit from the increased guarantee amount and lower fee provided by this special program.

“We launched this program to help improve housing and living stability of those families with many children who were facing difficulties due to the recent economic recession,” said an official at KHFC. He added, “We expect that this program will encourage young married couples to have more children in the current environment where low birth rate is emerging as a somber social problem.”