Starting this October, the  Flat35 S home loan won’t be available to buyers of brand-new homes or land to build brand new homes on in sediment disaster special alert areas (aka Red Zones).

This applies even if just a portion of the house is built over a Red Zone. It is acceptable if the land itself is partially covered by a Red Zone, as long as the house is not constructed over this portion. 

This won’t affect existing home sales (resales). Existing homes in Red Zones that meet the Flat 35 S criteria may still be eligible for this mortgage product.

Red Zones are considered at risk of landslides that can cause damage to property and put residents’ lives at risk. Before buying, you can check landslide hazard maps with the city where the property is located. Some cities have these maps available on their city websites. 

The Flat 35 home loan program was introduced by the government-backed Japan Housing Finance Agency in 2003. The loans provide full-term fixed-rate mortgages to home buyers and are offered through many retail banks. The Flat 35 S loan provides an additional discounted interest rate for the first 5 ~ 10 years and is offered on certified long-term superior housing. 

Source: Japan Housing Finance Agency, June 3, 2021.

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