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I have not notice any tightening up of credit or home mortgage loans as long as equity is there and, a decent credit score.
The Paradigm is simple to grasp, either you look where everyone else is looking, the existing budget or address the budget. When you address the budget you don't look at the lifestyle, that is a no go, no one is biting on that, if they do they'll be over at Dave Ramsey's site.
First thing we have to understand is the simple fact that much of middle America is similiar, in that a vast majority have problems, first obvious problem is that there is no real savings, well not enough for retirement. That is plain and simple, yet they do hold assets, it is how they are managing those assets that are preventing them from saving a substantial amount. First thing you do is show them just how much they'll need to substain their lifestyle thru out their retirement. Just figure a 4% inflation rate, ask them what they are achieving in interest on savings and how much savings they have. It is a no brainer, rarely do I find anyone that has substantial amount saved or have enough that the growth of the money Vs inflation is going to be enough.
I just love this question, "Now that we know you don't have enough for retirement, if I can show you what you think is true, in fact is not, would you consider reviewing a plan that we will create for you?". Usually a few moments of comparing a paid off house vs a house not paid off but a large side account suffices to generate a great deal of interest. Now obviously, most will not run off and get a new mortgage and dump tons of money in a WL Policy, that is a new paradigm I had to go thru! Take the HELOC, now I can say everyone needs a HELOC! Does that mean everyone should be using the HELOC? Of course NOT but, having one in place does serve a great function, as in it gives the equity that the person has liquidity, which is a powerful thing do itself. Which is a key to the plan, security. The HELOC being in place allows them access to the money at a known cost any time in the future. So what does that do? Simple, they now can manipulate their rainy day fund, which on average runs from 5-30 grand for middle america.
Now that I have free up some money, I go after the "Cost of Aquisition", another words, I simply bring up that nasty little thing, how much they are paying for credit, likely its around 30% of their entire income. Let us forget that idea of 10% should be saved, if I can start repositioning that 30%, I can use conservative interest of 6-8% and beat anything you can do with 10%!
The paradigm is simple, look at the cost of living and not the lifestyle! Its late, I hope I was able to post this in some proper manner but, in a nutshell this is the beginning of the plan. Next, the various mortgages available to them, financing of that new car or boat is a great place to start, not the home.
