What type of loan is typically used for purchasing a home?

A residential mortgage is specifically designed for individuals looking to purchase a home. This type of loan is tailored to the needs of homeowners, often offering lower interest rates and longer repayment terms compared to other forms of financing. Residential mortgages are generally secured by the property being purchased, allowing borrowers to finance a significant portion of the home's purchase price while keeping monthly payments manageable over the course of the loan.

In contrast, a commercial mortgage is used for financing commercial properties, not personal residences. Bridge loans serve a temporary purpose, typically offering short-term financing until a permanent loan is secured, and are often used in situations like purchasing a new home before selling an old one. Hard money loans are usually short-term and secured by real estate but come with high interest rates, typically used by investors rather than homeowners looking for traditional financing. Thus, the residential mortgage is the most suitable choice for purchasing a home.