Exacerbating the problem is that as home prices have decreased, many lenders have increased the down-payment amount required to obtain a mortgage loan.
One of his clients who lent her grandchild money for a home downpayment created a written agreement that included the loan amount, interest rate and monthly payment.
They include raising stamp duties by five to seven percentage points, increasing down-payment requirements, and lowering the amount some home buyers are allowed to borrow relative to the value of the property they are purchasing.
Some may still be able to obtain an FHA loan with a low down-payment requirement, but those with poor credit will likely have to put a larger amountdown.