By Daniel Bortz
From Kiplinger’s Personal Finance
Looking to purchase a home in this market? Take these steps to qualify for the best mortgage rates. Increase your down payment To qualify for the lowest rates on a conventional loan backed by Fannie Mae or Freddie Mac—the nation’s two largest mortgage buyers—you’ll need a 20 percent down payment, says Melissa Cohn, a regional vice president at William Raveis Mortgage, based in Shelton, Conn.
“The bigger your down payment, the better the rate,” Cohn says.
Need a little help piecing together a bigger down payment? Check out national and local down payment assistance programs, says Ralph DiBugnara, with Cardinal Financial, an Arizona-based mortgage lender. You can research eligibility requirements for thousands of down payment assistance programs at DownPaymentResource.com….