{"id":204,"date":"2026-10-07T12:39:46","date_gmt":"2026-10-07T03:39:46","guid":{"rendered":"https:\/\/iwaw.kr\/en\/2026\/10\/07\/beotimmok-jeonse-loan-refinancing-requirements-362a28ddbd\/"},"modified":"2026-10-07T12:40:00","modified_gmt":"2026-10-07T03:40:00","slug":"beotimmok-jeonse-loan-refinancing-requirements-362a28ddbd","status":"publish","type":"post","link":"https:\/\/iwaw.kr\/en\/2026\/10\/07\/beotimmok-jeonse-loan-refinancing-requirements-362a28ddbd\/","title":{"rendered":"Refinancing to a Beotimmok Jeonse Loan: Key Requirements When Converting from a General Credit Loan"},"content":{"rendered":"


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Can You Switch a Credit Loan to a Beotimmok Loan? \u2018Prerequisites for Refinancing\u2019<\/h2>\n

In principle, directly switching a credit loan to the Korea Housing & Urban Guarantee Corporation’s Beotimmok Jeonse Loan is not permitted. However, if certain requirements are met, you can pay off the credit loan through an indirect jeonse refinancing method (a loan for repurposing funds).<\/p>\n

Because the Beotimmok Jeonse Loan is a purpose-specific loan (intended for paying rental deposits), you must meet all 4 key prerequisites below to refinance a credit loan while already residing under an active lease agreement.<\/p>\n

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  1. Lease Agreement and Application Timeline Requirements<\/li>\n<\/ol>\n

    To proceed with refinancing for the home you currently reside in, you must align with the timeline for lease renewal rather than the signing of a new lease contract.<\/p>\n

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    • Initial Move-in Timing: Apply within 3 months from the move-in date or the move-in date recorded on the resident registration certificate (application is not possible if you have already resided there for more than 3 months).<\/li>\n
    • Contract Renewal Timing: Apply within 3 months from the date of contract renewal (deposit increase or simple extension).<\/li>\n
    • Deposit-Increase Renewal Contract: When the deposit increases, applying for a loan for the increased amount and using the available limit to repay the existing credit loan is practically the most common approach.<\/li>\n<\/ul>\n
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      1. Basic Borrower Eligibility (Income, Assets, Non-Homeowner Status)<\/li>\n<\/ol>\n

        You must strictly meet all eligibility criteria for the Beotimmok product.<\/p>\n

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        • Non-Homeowner Requirement: As of the loan application date, all household members, including the head of household, must be non-homeowners.<\/li>\n
        • Combined Annual Income for Married Couples:<\/li>\n<\/ul>\n
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          • General Beotimmok: 50 million won or less (60 million won or less for newlywed households, households with multiple children, or households with 2 or more children).<\/li>\n
          • Youth Beotimmok: 50 million won or less.<\/li>\n
          • Net Asset Standard: The combined net asset value of the household must be equal to or less than the average value of all households in the 3rd income quintile (the baseline is around the mid-300 million won range, applied according to the public announcement standard at the time of application).<\/li>\n<\/ul>\n
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            1. Target Housing and Deposit Criteria<\/li>\n<\/ol>\n

              The target property for the loan must meet the Fund’s requirements.<\/p>\n

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              • Exclusive Area: Exclusive use area of 85\u33a1 or less (100\u33a1 or less for eup\/myeon areas outside the Seoul metropolitan area).<\/li>\n
              • Deposit Limit:<\/li>\n<\/ul>\n
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                • General Beotimmok: 300 million won or less in the Seoul metropolitan area, 200 million won or less in non-metropolitan areas.<\/li>\n
                • Youth Beotimmok: 300 million won or less.<\/li>\n
                • Property Rights Analysis: There must be no grounds for disqualification for issuing a jeonse guarantee certificate from HUG (Korea Housing & Urban Guarantee Corporation) or HF (Korea Housing Finance Corporation) for the rental deposit.<\/li>\n<\/ul>\n
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                  1. DSR and Existing Loan Repayment Structure<\/li>\n<\/ol>\n

                    You must manage the impact of your existing credit loan on the disbursement of the Beotimmok loan.<\/p>\n

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                    • Verification of Fund Usage: In principle, Beotimmok loan funds are disbursed directly into the lessor’s bank account. The process is settled either by having the lessor receive the increased deposit, or by having the lessor return the borrower’s self-funded portion of the previously paid deposit with the lessor’s consent, which is then immediately used to pay off the credit loan.<\/li>\n
                    • Impact on Existing Loan Limits: If the existing credit loan balance is excessively high, the jeonse loan limit may be reduced when calculating the HF guarantee certificate limit (debt-to-income ratio).<\/li>\n<\/ul>\n

                      Inspection Checklist<\/p>\n

                      \n\n\n\n\n\n\n\n\n
                      Inspection Item<\/th>\nRequired Check<\/th>\nMet Status<\/th>\n<\/tr>\n<\/thead>\n
                      Contract Timing<\/td>\nIs it within 3 months of the move-in date or within 3 months of the renewal contract date?<\/td>\n[ ]<\/td>\n<\/tr>\n
                      Income\/Assets<\/td>\nIs it within the combined couple income (50\u201360 million won or less) and net asset criteria?<\/td>\n[ ]<\/td>\n<\/tr>\n
                      Target Housing<\/td>\nIs the exclusive area 85\u33a1 or less and the deposit 300 million won or less (metropolitan area standard)?<\/td>\n[ ]<\/td>\n<\/tr>\n
                      Guarantee Issuance<\/td>\nCan the guarantee limit be approved while maintaining the existing credit loan?<\/td>\n[ ]<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

                      Depending on your current contract status (new lease contract vs. expiration renewal), deposit amount, and existing credit loan balance, the procedures you can actually pursue (such as utilizing a deposit-increase renewal) may vary.<\/p>\n

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                      4 Core Eligibility Requirements for the Beotimmok Jeonse Loan<\/h2>\n

                      As the Korea Housing & Urban Fund’s flagship housing stabilization product for working-class households, the Beotimmok Jeonse Loan offers significant low-interest benefits, which comes with strict screening standards. Here are the 4 core eligibility requirements you must verify before applying for the loan.<\/p>\n

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                      1. Non-Homeowner Head of Household Requirement<\/li>\n<\/ol>\n
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                        • All Household Members Non-Homeowners: As of the loan application date, not only the head of household but also spouses and all direct ascendants and descendants listed on the resident registration certificate must not own a home.<\/li>\n
                        • Prospective Head of Household Recognized: Even if you are not currently a sole head of household, a “prospective head of household” scheduled to separate households and register as head of household within 1 month from the loan disbursement date can also apply.<\/li>\n<\/ul>\n
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                          1. Income and Asset Requirements<\/li>\n<\/ol>\n
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                            • Combined Annual Income for Married Couples:<\/li>\n<\/ul>\n
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                              • General Households: 50 million won or less combined for married couples<\/li>\n
                              • Multi-child \/ 2-Child Households: 60 million won or less<\/li>\n
                              • Newlywed Households: 75 million won or less (including the Youth Beotimmok newlywed category)<\/li>\n
                              • Net Asset Standard: The combined net asset value of the loan applicant and spouse must be equal to or less than the average value of all households in the 3rd income quintile (345 million won or less). (Calculated by deducting liabilities from real estate, general assets, financial assets, and vehicle values)<\/li>\n<\/ul>\n
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                                1. Target Housing and Deposit Criteria<\/li>\n<\/ol>\n
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                                  • Exclusive Area: Housing and residential officetels with an exclusive use area of 85\u33a1 (approx. 25.7 pyeong) or less (100\u33a1 or less in non-urban eup\/myeon areas outside the Seoul metropolitan area).<\/li>\n
                                  • Deposit Ceiling:<\/li>\n<\/ul>\n
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                                    • General Beotimmok: 300 million won or less in the Seoul metropolitan area, 200 million won or less in non-metropolitan areas (400 million won or less in the metropolitan area and 300 million won or less in non-metropolitan areas for newlywed and multi-child households).<\/li>\n
                                    • Youth Beotimmok: 300 million won or less across all regions.<\/li>\n<\/ul>\n
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                                      1. Contract and Guarantee Issuance Requirements<\/li>\n<\/ol>\n
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                                        • Deposit Payment and Fixed Date: You must execute a housing lease contract, pay at least 5% of the lease deposit, and obtain a fixed date (hwakjeong-ilja).<\/li>\n
                                        • Application Deadline: You must apply within 3 months from the earlier of the balance payment date or the move-in date on the resident registration certificate. (Within 3 months from the renewal date in the case of a contract renewal)<\/li>\n
                                        • No Grounds for Guarantee Disqualification: You must pass the jeonse guarantee certificate issuance standards of the loan screening institutions, the Korea Housing & Urban Guarantee Corporation (HUG) or the Korea Housing Finance Corporation (HF), and there must be no personal credit issues or duplicate fund loans\/other jeonse loans.<\/li>\n<\/ul>\n

                                          Eligibility Requirements Summary Table<\/p>\n

                                          \n\n\n\n\n\n\n\n\n
                                          Category<\/th>\nKey Standards<\/th>\nRemarks<\/th>\n<\/tr>\n<\/thead>\n
                                          Homeownership Status<\/td>\nAll household members must be non-homeowners<\/td>\nIncludes prospective heads of household<\/td>\n<\/tr>\n
                                          Income Requirement<\/td>\n50 million won or less combined for married couples<\/td>\nNewlyweds: 75 million won \/ Multi-child: 60 million won<\/td>\n<\/tr>\n
                                          Asset Requirement<\/td>\nNet assets of 345 million won or less<\/td>\nCombined applicant and spouse<\/td>\n<\/tr>\n
                                          Target Housing<\/td>\nExclusive area of 85\u33a1 or less, deposit of 300 million won or less (General metropolitan standard)<\/td>\nIncludes residential officetels<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n
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                                          Refinancing Limits and Interest Rate Calculations: How Much of My Credit Loan Can Be Repaid?<\/h2>\n

                                          When looking to pay off a credit loan using a Beotimmok Jeonse Loan, the most critical calculation benchmarks are “the maximum Beotimmok limit I can receive,” “the impact of the existing credit loan balance on the guarantee limit,” and “the actual interest cost reduction after refinancing.”<\/p>\n

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                                          1. Criteria for Determining Available Beotimmok Loan Limits<\/li>\n<\/ol>\n

                                            The Beotimmok Jeonse Loan limit is determined by taking the lowest amount (min) among the following 3 criteria:<\/p>\n

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                                            1. Statutory Maximum Limit by Product<\/li>\n<\/ol>\n
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                                              • General Beotimmok: Up to 120 million won in the Seoul metropolitan area \/ Up to 80 million won in non-metropolitan areas (2 or more children \/ Newlyweds: Up to 300 million won in the Seoul metropolitan area \/ Up to 200 million won in non-metropolitan areas)<\/li>\n
                                              • Youth Beotimmok: Up to 200 million won<\/li>\n<\/ul>\n
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                                                1. Rental Deposit Ratio Limit<\/li>\n<\/ol>\n
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                                                  • General households: Up to 70% of the deposit<\/li>\n
                                                  • Youth \/ Newlywed households: Up to 80% of the deposit<\/li>\n<\/ul>\n
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                                                    1. Borrower Limit by Guarantee Institution (HUG vs. HF)<\/li>\n<\/ol>\n
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                                                      • HUG (Korea Housing & Urban Guarantee Corporation): Screening focuses primarily on housing price and official announced value (debt ratio), so the direct deduction impact from borrower income and credit loans tends to be relatively small.<\/li>\n
                                                      • HF (Korea Housing Finance Corporation): Strictly factors in the borrower’s annual income and existing debt (such as credit loans) to calculate the guarantee limit.<\/li>\n<\/ul>\n
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                                                        1. How Credit Loans Are Deducted from the Beotimmok Limit<\/li>\n<\/ol>\n

                                                          When proceeding via an HF guarantee certificate, the existing credit loan balance is deducted directly from the Beotimmok application limit.<\/p>\n

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                                                          • Example: Annual income of 40 million won, holding existing credit loan debt of 30 million won<\/li>\n<\/ul>\n
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                                                            • Income-converted limit:<\/li>\n
                                                            • Final estimated limit:<\/li>\n
                                                            • Repayable range: Depending on the capital headroom that can be secured\u2014excluding the amount paid to the lessor\u2014from within 80% of the new rental deposit, or based on the renewal increase amount, it becomes possible to repay the entire credit loan or a portion of it (in units of 10 million to 30 million won).<\/li>\n<\/ul>\n
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                                                              1. Monthly Interest Savings Calculation Based on Interest Rate Differences<\/li>\n<\/ol>\n

                                                                Financial cost savings resulting from converting a general Tier-1 bank credit loan (5.5% to 7.0% per annum) into a Korea Housing & Urban Fund Beotimmok jeonse loan (2.1% to 3.3% per annum, depending on the income bracket).<\/p>\n

                                                                \n\n\n\n\n\n\n\n\n
                                                                Category<\/th>\nGeneral Credit Loan (Existing)<\/th>\nBeotimmok Jeonse Loan (After Conversion)<\/th>\nMonthly Savings (Annual Savings)<\/th>\n<\/tr>\n<\/thead>\n
                                                                Applied Interest Rate<\/td>\nAssumed 6.0% per annum<\/td>\nAssumed 2.5% per annum (varies by income bracket)<\/td>\nInterest rate reduced by 3.5%p<\/td>\n<\/tr>\n
                                                                Refinancing 30 Million Won<\/td>\n150,000 won \/ month<\/td>\n62,500 won \/ month<\/td>\n87,500 won \/ month (1.05 million won \/ year)<\/td>\n<\/tr>\n
                                                                Refinancing 50 Million Won<\/td>\n250,000 won \/ month<\/td>\n104,166 won \/ month<\/td>\n145,834 won \/ month (1.75 million won \/ year)<\/td>\n<\/tr>\n
                                                                Refinancing 100 Million Won<\/td>\n500,000 won \/ month<\/td>\n208,333 won \/ month<\/td>\n291,667 won \/ month (3.5 million won \/ year)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

                                                                Practical Checkpoint: Even if it is difficult to repay the full credit loan all at once, you should design a structure where you meet the guarantee issuance criteria (such as utilizing the HUG jeonse loan guarantee) to secure the maximum limit approval, and then make phased prepayments on the remaining credit loan in order of highest interest rate.<\/p>\n

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                                                                Essential Checks Before Visiting the Bank: Application Process and Required Documents<\/h2>\n

                                                                When designing a structure to repay a credit loan utilizing a Beotimmok Jeonse Loan, screening logistics and document validity management must be far more precise than a standard jeonse loan application. Here are the step-by-step procedures and core required documents to prevent rejection during the guarantee screening by the Housing & Urban Guarantee Corporation (HUG) or the Korea Housing Finance Corporation (HF).<\/p>\n

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                                                                1. Step-by-Step Application Procedure (Timeline)<\/li>\n<\/ol>\n
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                                                                  1. Gigeum e-Deundeun Preliminary Qualification Screening (Online)<\/li>\n<\/ol>\n
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                                                                    • Before visiting the bank, submit a loan application through the Housing & Urban Fund’s ‘Gigeum e-Deundeun’ website or mobile app.<\/li>\n
                                                                    • The Korea Real Estate Board conducts a preliminary screening of homeownership status, married couple combined income, and asset qualification.<\/li>\n<\/ul>\n
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                                                                      1. Verification of Preliminary Qualification Approval<\/li>\n<\/ol>\n