You’ve already heard about the potential impact a federal prop up of Fannie Mae and Freddie Mac may have on future homebuyers, but the immediate credit crunch is already hitting condo buyers, according to an article in the Las Vegas Review-Journal.

The article included interviews with buyers who are now unable to close escrow on their units because they can’t secure financing. In some cases, these buyers were approved for mortgages when they put down their deposit on a preconstruction unit. Now, as many projects like condo-hotel Palms Place wrap-up construction, some buyers are finding that financing is no longer available. Buyers trying to get stated income loans (where income is not verified by the lender) are finding that the money isn’t there, while others are walking away from the closing table after realizing the appraisal for the unit is coming in at lower than the amount of the mortgage. To make matters worse, some buyers worry about paying several hundred dollars for an appraisal, only to get denied for the loan.

Executives at Palms Place, says the crunch has minimally impacted the project and that the developer has closed on some 250 units since opening its doors this spring. But certainly the bigger real estate picture in Las Vegas may give any potential buyer pause. The article quoted one local real estate agent who pointed to projects selling condos for $700,000 that were once going for $1.4 million and developments that once had units starting at $600,000 now offering those residences for $350,000. The question remains: Is a $600,000 condo with its price cut to $350,000 a good deal, or only just the beginning or a price free fall?