According to an article in the Star Telegram changes are occurring in the mortgage industry that will make it tougher for homebuyers to make a new purchase.

1. Buyers will no longer have access to down payment assistance from the seller.
2. No more 100% financing. Buyers must now make a significant down payment before lenders will put their necks on the line. How much a buyer will be required to put down on a home will be determined by his/her credit score.
3. Stated income loans no longer exist. You must now prove your income with tax returns.
   
4. The good news is that the Housing and Economic Recovery Act of 2008 allows buyers to claim a $7,500 interest free loan from the government on homes purchased before June.
5. 80/20 loans that allowed buyers 100% financing while bypassing mortgage insurance no longer exist.

The bottom-line is that it will be a lot tougher out there for buyers to get financing with small down payments especially if their credit is not stellar. Lenders are not just tightening their loans to banks; but they are also tightening credit access to individuals which is in turn putting downward pressure on the housing industry.

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