KHFC to enforce special guarantee measures for housing purchases
- Date 2010-04-30
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- Special measures aimed at
helping homeowners sell their existing homes if they are not able to move into
a new apartment because their existing home has not sold
On May 2, 2010, Housing
Finance (KHFC, CEO Joo-jae Lim) announced that it would enforce from May 7, 2010 special measures to help the smooth move-in of
homebuyers into new apartments as a follow-up to the “Measures to relieve
unsold apartments and vitalize their sale” announced on April 23, 2010.
The key of the special measures
is to guarantee credit to be taken in excess of the DTI (debt-to-income ratio)
limit within the supervisory LTV (loan-to-value ratio) limits for those who buy
a home but cannot move into their newly purchased apartment because they are unable
to sell their existing home. The DTI restriction of the Financial Supervisory
Service applies to apartments located in Seoul, Incheon, and Gyeonggi-do
areas.
To be eligible, those
purchasing a home from an existing homeowner must have an annual income of 10
million won or more (including the income of the spouse) and own one or no home
under his/her or spouse’s name; a homeowner must sign a commitment to dispose
of the currently owned home within two years from the date of the credit. Also,
the purchased home must be an apartment 85㎡ or smaller in
size in the metropolitan area excluding any speculative districts (three
districts in Gangnam area) with a value of 600 million won or less.
“If you need to sell your
existing home to move into a newly purchased apartment and your existing home
meets the requirements, inform your real estate broker that your existing home
is eligible for DTI preferential treatment. This will help you to sell your
existing home,” said an official of KHFC.