Congress Wants to Help Homebuyers

Massachusetts Democrat Barney Frank sees the new sway in Congress as a way to address rising housing problems. Set to become the chairman of the House of Financial Services Committee in the new year, Frank wants to use the Democratic Congress to help out homebuyers in high cost states. The current conforming housing cap in the US is $417,000; loans under this amount qualify for better interest rates than “jumbo” loans, or those exceeding that amount.

Frank, coming from a state that has one of the highest housing averages in the nation, knows that $417,000 may be able to buy a mansion in Nebraska, but is not enough for most of the starter homes in his area. The future chairman wants to have the conforming loan limit adjusted by state, perhaps even by counties, in order to give high cost areas a break in mortgage rates. Though the measure is still on the table, it benefit homebuyers in the near future and homeowners looking to refinance later on.