Financing has become hard to come by. Lenders are tightening their programs almost to the point of prohibiting any buyer without a significant down payment to purchase a home. Zero-down loan programs are nearly inpossible to find according to several Las Vegas lenders. There is very little secondary market for the loans so no one will originate them.
The NAR says that 4 of 10 home buyers in 2005-2006 used some type of no money down loan. According to an article on MSNBC, millions of potential home buyers will be left without the option to purchase until they are able to reserve a significant down payment.
The Las Vegas housing market is feeling this impact. The fewest number of homes closed this month of any month this year. Most Real estate agents are scrabbling to find buyers to work with and many originators are in the same bind. According to one lender who has been originating for 10-12 years the situation will get worse before it gets better unless interest rates change to entice qualified people to buy.