Housing Finance Corporation to Expand Real Estate PF Guarantees

Korea Housing Finance Corporation announced on the 27th that it will launch a 'Special PF Fund Type' product that expands guarantee and loan ratios and diversifies loan repayment methods to normalize project financing (PF) sites.

This is a follow-up measure to the 'Plan to Revitalize Housing Supply for National Housing Stability' (joint announcement by related ministries) announced by the government on September 26. It targets projects acquired by the PF site normalization support fund established by Korea Asset Management Corporation (hereinafter 'KAMCO'), where the developer has been replaced to normalize the project.

This product reduces the burden on banks, developers, and contractors by ▲increasing the guarantee ratio from the existing 90% to 95% and ▲expanding the loan ratio from the existing 70% of the total project cost to 80%. Additionally, ▲to allow project entities to flexibly repay loans, a new repayment method based on a fixed percentage has been introduced alongside the existing fixed amount repayment method.

The fixed amount repayment method requires repayment of a set amount according to the repayment schedule regardless of the sales rate. However, the fixed percentage repayment method allows repayment of only a specified percentage according to the repayment schedule, enabling flexible responses depending on the sales situation.

This content was produced with the assistance of AI translation services.