Is anyone else realizing this question was from LAST October?
Second, since this idea was just introduced, when someone tells me they got a loan without a credit check (insinuating they have credit issues) and at 3%, when long-term interest rates have never been that low, my instincts are to run away, as fast as I can. Lending is all about risk vs. benefit--what is the risk the lender is going to get repaid vs. the rate of interest someone is willing to pay for the benefit of getting money lent to them. NO ONE is going to lend to people with credit issues at such a low rate (as we all know some of those loans are not going to be paid back, erasing any profit from a whole bunch of other 3% loans) and stay in business very long. It just does not work that way.
Which tells me there are some other costs being assessed which make that particular lender "whole". Are there excessive Points? Are the fees enough to make up for the low interest rate? Something is out there, and I hope whomever contacts ANY lender, goes into the deal understanding these facts.
Good luck, out there. It is a jungle! :)