Subsidized and goverment insured are two different things. You have goverment loans (VA, etc.) and convetional loans.

Also, 100% financing will always be available as long as Wall St. is willing to purchase the product. Most true portfolio lenders have stricter guidelines. I can post guidelines for Downey, World, US Bank, etc. Their portfolio products are stricter than what is being passed on as a mortgage backed security.

Give it time, Wall St. is slow to react to change, but they will eventually come around. We’ll see some decent changes by 2008. We’ve already seen PMI become tax deductible (a big wiin) and soon we’ll be able to welcome back the 125% market.