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HF KOREA HOUSING FINANCE CORPORATION

Housing Guarantees (Individuals/builders)

Home > Housing Guarantees (Individuals/builders) > Housing Guarantees for 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
Comparison of Housing Guarantee Products for Home Builders
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)