The financial meltdown has most banks running scared in regards to making new mortgage loans, much to the President's lament. These days in order to qualify for a mortgage, most prospective home buyers will need a sizable downpayment, a relatively high income in relation to the mortgage amount, and a long and virtually spotless credit record.
The administration is considering measures to both entice and force lenders to start making mortgages available to the general public once again in an attempt to revive the long stagnant housing market, but with memories of the sub-prime mortgage fisaco still fresh in their minds most lenders are wary about dipping their toes back into an uncertain market.
Those who are planning to buy a house within the next couple of years would be well advised to begin making preperations now. Right now the guidelines for qualifying for a mortgage are quite strict, so the sooner one gets started the better.