HF Restricts the Availability of Conforming Loans to Multiple-Home Owners - From the 5th, Conforming Loans available on
- Date 2018-10-04
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HF Restricts the Availability of Conforming Loans to Multiple-Home Owners
- From the 5th, Conforming Loans available only to those buying their first or second home
Korea Housing Finance Corporation (HF, CEO Lee Jung-Hwan) announced on October 4, 2018, that it will introduce a limit on the number of homes for Conforming Loans* applicants.
* Conforming Loans: 10+-year maturity, fixed-rate amortized mortgage loans which HF has agreed to purchase from commercial banks when the loans meet property value (KRW 900 million or lower) and loan limit (KRW 500 million or lower) requirements
With the newly introduced eligibility requirement, HF aims to prevent the provision of state-sponsored mortgage products, which are funded by limited financial resources, to owners of multiple homes and to focus its support on those with a real need for home ownership.
Starting from October 5, 2018, Conforming Loans will only be available to those who, along with their spouse, own no or one mortgage-free home (under the condition that they must sell their existing home within two years from the drawdown date of the respective Conforming Loan).