HF Unveils Didimdol Loan with Limited Liability

 
- Open for application at the HF website from May 11, 2017

Starting from May 11, 2017, Didimdol loans with limited liability* are going to be open for application at the HF website and its mobile application‘Smart JooTaekKeumYoong.’
    * The borrower’s liability for the repayment of a mortgage is limited to the amount of the securitized property. Even in the case that the property is put up for auction and the borrower has not payed off the loan, the borrower is not liable for the outstanding balance of the mortgage.

Korea Housing Finance Corporation (HF, CEO Kim Jae-Chun) revealed on the 10th that it will introduce securitized ‘Didimdol Loans with Limited Liability’ on May 11, 2017, to protect low-income households with little or no capacity to repay their debt from extreme economic hardship. Up until now, the loans have been available only at the branch offices of commercial banks. 

The loans are only available for couples whose combined annual income is less than KRW 30 million, and these couples’ loan limit and eligibility for the loans are determined by the size, years of use, and resident growth rate of the residential complex to which the securitized property belongs as well as the purchase price of the property.

An HF official said, “As the new loan product limits the liability of the debtor only to the amount of the securitized property, this product will be of significant help to stabilize the economic lives of debtor households whose repayment capacity has weakened severely after taking out a loan.”