HF Set to Boost the Supply of Small-Sized Rental Housing

 
- HF offers loan guarantee of up to 70% for small-sized rental housing provider through MOU with Kookmin Bank and Suhyup Bank

Korea Housing Finance Corporation (HF, CEO Lee Jung-Hwan) said on May 2, 2018, that it signed an MOU with Kookmin Bank and Suhyup Bank to provide financial support to small-sized rental housing providers.

Under the MOU, the provided financial support is available in cities, towns, and districts with 200,000 inhabitants or more and goes to businesses planning to construct a residental complex with less than 30 residential units of the size of 85㎡ or less.

HF offers its loan guarantee to cover up to 70% of their project costs and guarantees 100% of the loan for those registered as residental rental business operators. It also raises its construction cost guarantee from the current 100% to 120% of the standard cost. Businesses that obtain an HF letter of guarantee are eligible to take out a loan at Kookmin Bank and Suhyup Bank with no commissions or service charges.

HF CEO Lee Jung-Hwan said, “With the recent increase in the number of one- or two-person households, we came up with these support measures to promote the supply of small-sized residential units. We will work further to ensure that low-income recent graduates and one- or two-person ageing households can secure stable housing.”