WDEF News 12

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Lawmakers call it the most significant housing legislation in a generation.

A new housing law aims to stimulate the economy by throwing a lifeline to struggling homeowners.

It also provides some incentives that should stimulate the local housing market.

In its six months on the market, the Belva's three bedroom 2 and a half bathroom house in Ooltewah drew around a dozen prospects...but no sale.

Bill Belva, Homeowner, "Right now it's a buyers market and a lot of people have been coming through and looking but few people have been making decisions."

But that could soon change thanks to the new housing law.

Pam Duffy, Chattanooga Association of Realtors, "This should open up an entire group of people who've been waiting. This should give him some more opportunities to sell his house. We're in hopes that we'll see a lot more buyers out there than we have been seeing over the last three months."

The president of the Chattanooga Association of Realtors Pam Duffy says tax credits of up to 75 hundred dollars for first time buyers in the law should convince renters in our area with good credit to buy.

She says that will create a domino effect.

Duffy, "It's a wonderful thing for the housing industry and all of the relating industries, from furniture to carpet to paint and lumber."

Local mortgage companies are also excited about the relief.

Express Mortgage Company's Greg Petree urges people hoping to get 100 percent financing to buy in the next 60 days...because of one provision in the new law.

Greg Petree, Express Mortgage Company, "As of October 1st. they are doing away with the down payment assistance program. After October 1st. everyone will have to have a 3 % down payment unless they're a veteran or it's a real housing situation."

It all means instead of another six months on the market, the Belva's now expect to sell in the next couple of months.

The law provides mortgage relief for 400 thousand struggling homeowners.

Your payment must be at least 31 percent of your income.

Homeowners who think they may qualify should talk with a mortgage professional.

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