The activities of the Housing Financing Fund may be divided into two categories:
- Loans for the purchase or construction of homes and improvements for currently owned homes.
- Loans to local authorities, non-profit companies and non-governmental organizations for the acquisition of housing with regards to specific social factors.
Firstly, the Fund provides loans to the public to invest in new or preowned housing and to those who choose to build their homes. This category also includes loans for home improvement. The loan amount can be as high 80% of the purchase price or construction cost (as registered by the Land Registry of Iceland). In the event of home improvement, the loan may amount up to 80% of the total cost.
Secondly, the Fund provides loans to local authorities, companies and non-governmental organizations to purchase or build private homes for the purpose of leasing them to the public.