Conventional loans follow Fannie Mae/Freddie Mac rules. Government programs lower barriers: FHA allows lower scores and down payments, VA serves eligible veterans with no down payment, and USDA supports rural buyers. Jumbo loans exceed conforming limits, and ARMs start with a lower fixed period before adjusting.

You can often buy with as little as 3-5% down on conventional loans, or 3.5% on FHA. Putting less than 20% down on a conventional loan usually means paying private mortgage insurance (PMI) until you build enough equity.

Lenders may let you pay points up front to buy down your rate. A rate lock holds your quoted rate for a set number of days while you close, protecting you from market swings during processing.

A purchase mortgage finances a home you are buying. A refinance replaces your current loan for a better rate or term, and a cash-out refinance lets you borrow against built-up equity. Mortgage applications almost always use a hard, tri-bureau credit pull.