The mortgage industry is not in chaos and there is plenty of money available to loan. The industry has changed though. To  summarize some of the changes, and there are a few, here is a bullet list of some items for consideration when searching for a new loan and for understanding what is different since last year.

*161 lenders have closed their doors since 2006

*Underwriting standards are stricter than ever

*Credit scores less than 620 with little money  down are not eligible for subprime loans

*Buyers are turning to FHA and VA loans to get 97%  and 100% loans at reasonable rates

*Non-profit down-payment assistance programs are gone

*It's very tough to do a 1st and 2nd mortgage to finance a 90-95% loan of the sales price

*Jumbo loans (over $417,000) are now quoted at  7.5% or more depending on the borrower and their down-payment

*Jumbo loans often require two appraisals-one by  the lender and one by the investor

*Lenders are very cautious about fraud these days

Lenders are searching for risk reduction. and scrutinizing loans heavily which have low FICO scores (credit scores), stated income borrowers, low down-payments, and high dept to income ratios.

I would highly recommend  you search for an experienced mortgage broker if you're looking for a first mortgage or refinance!