The Gallup Organization's most recent consumer confidence polls don't look good. They show that only around 5% of consumers believe our economy is in good shape, and that only approximately 12% think that economic conditions will improve in any meaningful way, any time soon. But who can really blame them for feeling that way? Housing prices have crashed, foreclosure rates have been sky-high, and a number of big lenders have recently been pushed to the brink of destruction. Our current economic climate is not the sort that breeds positive thinking.

In addition, tossing around phrases such as "credit freeze" certainly doesn't help things, especially when very little clarification of their meaning is given. What it actually does is lead consumers to believe that it isn't possible to get a loan on a new home or car, which is simply not true. Various measures have been taken by the U.S. Federal Government in order to insulate consumers from the current economic crisis and encourage continued activity in the consumer lending sector. And despite tightening criteria for loans, many borrowers are still being given financing.

Right now may actually be the best time to purchase a new home. According to the National Association of Realtors, the average sale price of existing homes has declined roughly 9.5%, which is the largest fall since they began recording in 1999. The S&P/Case-Shiller 10-city housing price index also saw the steepest drop in its history, plunging about 17.5%. What this means for those considering the purchase of a new home is that they can potentially do quite well, as housing prices haven't been this low in a long time.

Additionally, new FHA lending regulations recently put in place also favor consumers. FHA loan limits have been raised from $362,790 to as high as $729,750, depending on location. FHA loans are now running very reasonable rates and only require a 3.down payment of 5%, and even will allow family members to provide down payment assistance.

One interesting thing to note for first-time home buyers is that if you make less than $75,000 a year, you will receive a tax credit for 10% of the sale price of the new house, capped at $7,500. This credit is available to buyers through July 1, 2009. Now, while it is being called a credit, actually it's technically a loan. But it isn't often that you can find a 0% loan that's payable over 15 years, so it's a good thing as far as I'm concerned.

As I said before, lending criteria has tightened a fair amount, and while minimum accepted credit scores used to be in the low 500's, as of recently they range between the upper 500's to the lower 600's. Also, 100% financing has become a rarity given the current economic crisis, so it's not unreasonable to expect that you will have to put some money down. More is required in the way of documentation and proof of income these days as well.

It's hard to say who will or who won't be approved for a home loan, so you'll probably be best served by meeting with a Certified Mortgage Planner. Not only can they help you figure out which lenders will or will not finance you, they can also come to your aid in figuring out which offer best suits your individual situation.