Despite a lot of media coverage about the difficulty in getting a mortgage after the many new regulations and credit tightening activities of major lenders, there's a mortgage out there for many of those who really want one and need to buy a home. While banks are reporting a return to profitability, they make their money in lending money, so somebody is borrowing. Yes, some of the new profitability comes from escalating credit card interest rates, but consumers are also paying off debt because of that very fact. So, as that trend continues, banks should find mortgages to be the way to go in creating stable profit reports in the future.
The media coverage of all of those complex financial "derivatives," where banks re-packaged loans and resold them, or sold other financial products based on them, has made us all aware of the other ways in which large lenders will work to profit from their loan portfolios. The fact that many of those financial issues were not based on solid business basics resulted in the failure of some banks, increased government regulation, and greater care in lending. The rules are tougher, and these tougher credit score and down payment requirements have shrunk the pool of available customers for mortgage loans.
The good news is that there is still FHA backing for loans to consumers with lower credit scores and much lower down payments. Couple that with the banks need for a new and stable base for their mortgage portfolios, and the consumer has a little bit of clout. It's not as easy as it used to be, but that just makes a customer with the required credit history, income, and down payment that much more valuable. Use your good credit history, stable income and down payment ability to shop for a mortgage that meets your needs, at a time when interest rates are still at levels not seen for sustained periods at anytime during the last 30 years.