HF Releases Renovation Loan Guarantee for Multi-Family Residential Homes
- Date 2018-07-20
- Views 4,487
HF Releases Renovation Loan Guarantee for Multi-Family Residential Homes
- HF helping to facilitate the supply of small-size rental homes
Korea Housing Finance Corporation (HF, CEO Lee Jung-Hwan) announced on the 20th that it unveiled the ‘HF Renovation Loan Guarantee for Multi-Family Residential Homes*’ to boost the supply of small-size rental housing units through the effective use of existing single-family residential properties.
* A multi-family residential home refers to an apartment or townhouse divided by either a connecting door or a lightweight separation wall into individual housing units with separate bathrooms, kitchens, and access.
HF rolled out this guarantee scheme to proactively respond to recent market changes caused by a sharp increase in the number of one- and two-person families due to the aging population and delayed marriage. Unlike the existing HF renovation loan guarantee scheme, this scheme does not impose a lien on the specific property. With the newly-released HF guarantee, homeowners can borrow up to KRW 50 million for the conversion of their single-family property into a multi-family one. HF is also planning to lower the guarantee fee from the current range of 0.2~0.3%.
An HF official said, “A multi-family residential home allows elderly residents with a large apartment unit but no income to secure a stable source of monthly rental income by renting a section of their home and, at the same time, helps tenants find relatively low-cost housing.”