If you believe to the news media, you would think that the financial crisis banks and investment houses have been experiencing, there is no money left to lend for mortgages. This simply is not true.
In the past several years, guidelines were loosened to the point that if an applicant was breathing, they could get a loan. These loans were bundled into mortgage securities and sold and resold into the secondary market. With real estate values increasing at a rapid pace, investors worldwide purchased these securities and believed that there was very little risk, as the properties were gaining value. Loans were made to unqualified buyers and to speculative purchasers who believed they could flip the property in a short amount of time and make a quick profit.