Attention homeowners and future homeowners. Congress has signed a new housing bill which contains important information for all those involved in real estate. Signed on July 30th, 2008, the new housing rescue bill includes some new rules for homeowners or those planning to purchase a home. The following is a list of some of the housing bill’s top highlights, both positive and negative.

1. Tax credit for first-time homeowners. Thanks to the housing bill, new homeowners can look forward to a tax credit of up to $7,500 or for 10 percent of the purchase price. Not to be confused with a tax deduction, this credit will simply reduce the tax bill within the tax year the home was bought. Homeowners must then repay the money over the next 15 years. .

 2. Refinancing into FHA allowed. The housing rescue law aims to help people who have fallen behind on their mortgage payments due to the increase in rates for adjustable-rate mortgages (ARMs). It encourages lenders to forgive some debt so people may refinance at lower amounts. However, those who decide to use this program will have to share their home-priced appreciation with the FHA.

 3. No more down payment assistance. As of October 1st, down payment assistance programs at places like Nehemiah and AmeriDream will no longer be allowed.

 4. Property tax deductions for all homeowners. The new law makes it possible for homeowners who can’t itemize and who pay property taxes to receive an increase in deductions.

 5. Increased reverse mortgage regulations. Due to the fact that more and more dishonest lenders are taking advantage of borrowers for reverse mortgages, the new law requires counseling before they are allowed to lend. The law will also limit origination fees on reverse mortgages.