HF to simplify procedures for jeonse housing guarantees and extend eligibility for preferential treatment

- Process to verify leasing agreements to be improved and preferential caps to be extended to multicultural families and those supporting a disabled person -

The procedures for jeonse housing guarantees will be simplified and the cap on housing guarantees will be raised for multicultural families and those that include a disabled person.  

On December 22, 2010, Housing & Finance (HF, CEO Joo-jae Lim) announced that as of December 24, 2010, it will ease the requirements for jeonse housing guarantees by allowing tenants to show proof of their lease agreement through written verification by a real estate agent (if the lease was signed through an agent). Before this decision, those applying for a jeonse housing guarantee were required to verify their lease agreement by submitting a confirmation signed by the landlord. The new policy is expected to improve tenants' access to jeonse loans as it will reduce possible landlord-tenant conflicts arising from landlords' reluctance to sign such a document.    

In an effort to increase guarantees for socially disadvantaged groups, HF will also extend preferential caps on housing guarantees for multicultural families and those that include a disabled person. As a result, these groups will enjoy a guarantee amount that is between 25% and 33% higher, depending on income and debt level. A multicultural household is defined as one where the married couple includes a foreigner or a naturalized person. A household with a disabled person is defined as one with at least one person with a registered disability (the applicant, his/her spouse or a lineal descendant who is a member of the household).

＂The new measure will facilitate the process of taking out a jeonse loan while improving the housing situation of disadvantaged groups such as multicultural households and those with a disabled person,＂ said an HF official. ＂HF will remain committed to extending financing support to low-income tenants.＂