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Check the new housing law for benefits
STORY TOOLS 
More from BusinessThe new housing law contains a wide range of benefits for homeowners. Here's a summary of four key provisions.
Homebuyer's credit. The new law provides a tax credit for first-time homebuyers who have not owned a principal residence three years prior to purchasing a home.
The credit is equal to 10 percent of the purchase price up to a maximum of $7,500. It's available for homes purchased after April 8, 2008, and before July 1, 2009. However, the credit is phased out for taxpayers with adjusted gross income between $75,000 and $95,000 ($150,000 and $170,000 for joint filers). Also, you're required to repay the credit on your tax returns over a 15-year period.
Property tax deduction for non-itemizers. For 2008 — and 2008 only — non-itemizers may deduct property taxes, in addition to claiming the standard deduction. The new deduction is equal to the lesser of the property taxes actually paid or $500 ($1,000 for joint filers).
Renegotiated mortgages. Under the new law, you may be able to cancel a mortgage originating before 2008 and replace it with a fixed-rate loan lasting at least 30 years. But the new mortgage amount can't exceed 90 percent of the current value of the home. To qualify, your monthly housing payment (as of March 1, 2008) must be at least 31 percent of your monthly household income. This program will end Sept. 30, 2011.
Loan limits. The new law increases the limit for loans purchased by Fannie Mae or Freddie Mac. Previously, the conforming mortgage loan limit was $417,000. Now Fannie Mae and Freddie Mac can buy loans of up to $729,750. Caveat: The loan can't be more than 15 percent higher than the median price for homes in the area.
On the downside, the new law includes a provision that will reduce the home sale gain exclusion for some individuals.
— Sandra J. Sunken , a certified public accountant, is a principal of Sunken Accountancy Corp., with an office at 1891 Goodyear Ave., Suite 618, Ventura. Call 658-1272 with questions.
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