KHFC provides credit guarantees to installment payment rental houses for the first time in the industry
- Date 2013-12-18
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KHFC provides credit guarantees to installment payment rental houses for the first time in the industry
- Eligible houses include those built in Misa District in Hanam City, Homaeshil District in Suwon, and Gajeong District in Incheon
The Korea Housing Finance Corporation (KHFC, President & CEO Seo, Jong-dae) announced on Dec. 18 that it provided credit guarantees to installment payment rental houses built on the A4 Block (222 households) of Seoul's Seocho District for the first time in the relevant industry. Next year, KHFC also plans to provide credit guarantees to other installment payment rental houses built in Misa District in Hanam City, Homaeshil District in Suwon, and Gajeong District in Incheon, etc.
| ※ Installment payment rental houses refer to those whose tenants pay a part of the house price by the move-in date and pay the remainder in phases over a rental period of 10 years before obtaining ownership of the house. It aims to provide opportunities for purchasing houses to those who find it difficult to do so because they don’t have enough money to buy the houses for sale. |
This credit guarantee product applies to installment payment rental houses supplied by public organizations such as the Korea Land and Housing Corporation, and the tenants should pay at least 5 percent of the house price based on the value in the initial tenants recruitment announcement.
The credit guarantee provided for installment payment rental houses is up to KRW 300 million and covers the deposits that can be turned into rent as well as the initial, halfway, and final payments.
A KHFC official said, “It has been hard to provide credit guarantees for installment payment rental houses because the relevant complexes have houses for sale and rent, and it takes a long time for the tenants to take ownership of the houses,” adding that “This is the first credit guarantee service of its kind provided by KHFC, and we plan to continue to provide guarantees to other installment payment rental houses.”
KHFC plans to provide credit guarantees for the halfway payments for the installment payment rental houses in Segyo District, Osan, which were occupied by tenants in June 2010.