SARASOTA - Home prices are plummeting and banks are overloaded with houses they've foreclosed on that they can't sell.  Good time to buy a house, right?  Maybe so, but good luck getting a mortgage to buy it.

As gas prices go up and the stock market goes down, a lot of people are worried about where it's all heading.  "Right now, I think it's very scary.  We're just living day to day.  Not knowing if you're going to have a job or not is very scary," says Sarasota resident Debbie Martins.

There could be one bright spot; This could be a great time to buy a house.  With so many on the market, owners desperate sell, and banks anxious to avoid foreclosures, some people say you can get a real bargain.

But can you get a loan?  Coldwell Banker's senior loan officer, Joan Marie Bazo, says it's a lot harder than it used to be.  "The lenders got really lax over the last few years.  They didn't verify anything, they were doing loans for people who could not verify income or couldn't provide asset verification.  They won't do them anymore."

Now you're going to have to provide a lot of proof that you are financially sound.  "Absolutely, they're checking it closer.  Self-employed people they want to see 2 years tax returns, just like they used to.  Employed people they want to see pay stubs.  Sometimes they want to see W-2's."

Ray Suplee, chairman of the Landmark Bank, says no more 100% financing.  You'll need a hefty downpayment.  "You basically need to put down 30%, and upon reflection, 30 years ago you had to put down 30%, so it's not anything new.   It's just a cycle."

Although with mortgage insurance you might be able to reduce your downpayment.  "You can get a conventional loan with 5% down, but you have to have at least a 680 credit score or higher because the mortgage insurance companies won't insure them.  If you have below a 680, they are requiring 10% down for a primary residence," says Bazo.

A lot of people are turning to FHA loans.  "FHA will still allow only 3% down.  They're a little more lenient on credit as well.  And they don't have to have their own money.  They can get a gift from a parent, sometimes we work with non-profit organizations, and the seller is allowed to pay all their closing costs," says Bazo.

And she says FHA loan limits in the Sarasota-Bradenton market are now $442,500.  "Anyone can get a loan if they qualify.  If they do not qualify for the loan, then they shouldn't be taking it out in the first place.  That's how we got where we are now."

Suplee says he doesn't believe the real estate market has hit bottom yet, and neither do a lot of buyers.