Some say that the increase in Heloc , Home equity loans, is what caused the market  to drop. Prior to 2008 many home owners were using the increased equity in their homes for extra income. In opinion I think this was a factor but not the total cause.

The market has rebounded and the banks are continuing to loosen lending. I am now reading that they are once again issuing HELOC loans.

My only advise  to the prospective borrowers is to make sure they have enough funds to pay the loans back with the extra interest.

http://www.mpamag.com/news/morning-briefing-home-equity-surges-as-prices-continue-upwards-39895.aspx