Any kind of loan is risk base, especially a commercial or home mortgages, thats lending 101. The best rates should go to those whom have great credit and put money down, the ones that have marginal credit, with no money naturally should have higher rates. If you have crummy credit you dont deserve a loan. So i agree, it does pick winners and losers. why is that be a bad thing? Not everyone deserves a home, its not a right, its a privilege.

i dont understand what you are saying on the last sentence of first paragraph. to your point to the second paragraph.... how do you figure?