A purchase loan is essentially a mortgage loan made with the intention of financing the purchase of real estate. This can include anything from a house or a condominium to a motel or office building. This type of loan is exclusive to property and similar to a home purchase loan, except it applies to all forms of real estate.

With a purchase loan, borrowers can finance nearly all types of real estate, but keep in mind that the actual rates and terms will vary from lender to lender. The type of real estate you're buying can also play a factor, and while most real estate is buyable with a purchase loan, government property is not. Here is a break down of the major land categories and their corresponding options for purchase loans:

Commercial property purchase loan
Any property used for business or designed for any commercial purpose is considered 'commercial property.' This includes stores, offices, parking lots, motels, and any other commercial real estate; these are routinely financed with purchase loans.

Residential property purchase loan
Any property used for residential purposes qualifies for a residential purchase loan. This type of loan is essentially a home purchase loan and is designed for purchasing a home, condominium, apartment, or other residential real estate.

Recreational property purchase loan
Recreational real estate covers a wide range of land, from golf courses to luxury resorts. This type of land is often financed with purchase loans.

Agricultural property purchase loan
Agricultural land is any real estate used for all types of farming and some types of ranching; it can be financed with a purchase loan as long as it qualifies in the categories above.

Industrial property purchase loan
Industrial property can sometimes be financed with a purchase loan; it depends on the lender and the circumstances. This type of property is any real estate used for industrial purposes, such as manufacturing.

Government property purchase loan
Unfortunately, these loans don't exist. Because government land is owned and sold by the federal or state government, it can't be bought with a purchase loan.

There are numerous benefits to financing real estate with a purchase loan. Benefits of these loans include:

• Opportunity to finance almost any type of real estate;
• Usually offers a lower interest rate, allowing you to pay off more of the loan balance;
• Varied options depending on lenders, so you're more likely to find what you're looking for;
• Low down payment programs (as low as 3% in some cases);
• Programs that allow you to eliminate or keep Private Mortgage Insurance (PMI);
• Many other financing options.

A purchase loan is available for many types of real estate across the board, and it is also subject to individual lenders; thus it should be thoroughly researched and you should shop around for the best deal, often found online. Keep in mind that whether you are a business owner or individual, normal loan requirements apply, such as credit score, financial situation, and age.