No, not all home purchase loans in the United States are commercial. Most home purchase loans are residential mortgages, while commercial loans typically finance non-residential properties.

In the U.S., home purchase loans are primarily residential mortgages, which account for the majority of residential real estate financing. Commercial loans, by contrast, are generally reserved for business-related properties such as office buildings, retail spaces, or industrial facilities. According to the Federal Reserve’s 2022 data, residential mortgages represented approximately 75% of all U.S. home loans, totaling over $10 trillion in outstanding balances. Commercial mortgages, which include loans for multifamily housing, office buildings, and other non-residential properties, constituted a much smaller share, around 15%, with a total value of roughly $1.5 trillion.

The distinction arises from regulatory and risk-based frameworks. Residential mortgages are often subject to standardized underwriting criteria, such as conforming loan limits set by Fannie Mae and Freddie Mac, and are typically backed by government-backed insurance programs like FHA or VA loans. Commercial loans, however, are tailored to individual borrower needs, involve higher risk due to lower occupancy rates or property valuations, and are not subject to the same uniform regulations. For example, the Mortgage Bankers Association reported that in 2023, 88% of all new home purchase loans were residential, compared to 12% for commercial properties. Additionally, commercial loans often require larger down payments, longer amortization periods, and stricter financial documentation from borrowers. This differentiation ensures that while some home loans—particularly those for multifamily dwellings—may blur lines between residential and commercial categories, the overwhelming majority remain strictly residential in nature.