Housing Guarantees (Individuals/builders)
Housing Guarantees for Builders
1 What is a housing guarantee for home builders? Open
- This is a guarantee service for home builders who seek to obtain loans from financial institutions to build homes to lot out or lease.
2 Product type Open
-
Project finance guarantee
Guarantee service for loans in the form of project financing from financial institutions to build homes to lot out after completion. -
Construction loan guarantee (NHUF account)
Guarantee service for loans from the National Housing Fund to build homes to lot out or lease. -
Construction loan guarantee (bank account)
Guarantee service for loans from banks to purchase land and build homes to lot out after completion
3 Comparison of Housing Guarantee Products for Home Builders Open
| Type | Project financing guarantee | Construction loan guarantee (NHUF account) |
Construction loan guarantee (bank account) |
|---|---|---|---|
| Source of loan | Bank account | National Housing & Urban Fund account | Bank account |
| Timing of lot out | After completion (2/3 of frame completed) Pre-sale (eco-friendly housing) |
Mostly after completion (Refer to product guide.) |
After completion (2/3 of frame completed) Pre-sale (eco-friendly housing) |
| Private use area | At least 30% of total units should be less than 85㎡ each. |
Less than 85㎡ | No restriction (Speculation area: At least 50% of total units should be less than 85㎡ each.) |
| Project type | Lotting-out | Lotting-out, rental | Lotting-out, rental |
| Purpose of loan | Land purchase, construction, other expenses |
Construction | Land purchase, construction |
| Developer | SPC and etc. | No restriction (Operator, project owner, unregistered operator) |
Meet at least one of the following. (Pre-sale: simultaneous satisfaction of both ① and ②) ① Credit rating at least BB+ ② Top 200 nationwide in construction capacity ③ Developed or built at least 300 units in last three years ④ Affiliated company or builder meets one of the above and cosigns |
| Builder | Meet both requirements. ① Credit rating: at least BBB+ ② Top 200 nationwide in permissible contract amount |
No restriction | No restriction |
| Scope of responsibility of builder |
Completion Guarantee and etc. | Cosign | Cosign Completion Guarantee |
| Minimum no. of units |
200 in Seoul 300 in Gyeonggi/Metropolitan cities 400 in other cities 100 in public housing site |
No restriction | No restriction |
| Approval requirement |
Business plan approved | Business plan approved | Business plan approved |
| Project site requirement |
Contract signed for all land and payment made |
Land ownership obtained | Land ownership obtained |
| Loan limit site | 70% of total project cost (Sale after Building System : 80%) |
Amount calculated by a lending institution based on collateral value |
Amount calculated by a lending institution based on collateral value, or 70% of total project cost |
| Guarantee limit | 90% of loan, no limit per unit KRW 3,556 billion per company('19) |
90% of (loan - land collateral value) KRW 3,556 billion per company('19) |
90% of (loan - land collateral value), or 90% of loan KRW 3,556 billion per company('19) |