Is the interest rate cut good for consumers with marginal credit? Will it make it easier to get a home loan?
In theory, mortgage lenders will have a lower cost of funds and can take additional risks on loans. That means consumers who are not highly qualified may now be able to obtain that elusive loan.
In reality many, though not necessarily all, lenders see the subprime crisis as a time when innovative loan programs were created to get credit to those who were not highly qualified in the first place, so giving credit to marginal borrowers will continue an existing problem. The bottom line is that lenders create their policies on what is and is not an acceptable risk. These qualifications change from time to time based on the market. The best advise for a marginal borrower, is to improve your credit report, pay bills on time, pay off bills, and improve your assets in quality and quantity. This will make you a more attractive borrower.
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In theory, 