Cape Cod homes are among the most recognized and loved homes in America. This historic residential architectural style features compact homes of one to one-and-a-half stories with gables and a central chimney.
Puritan settlers built the first Cape Cod-style homes in New England hundreds of years ago.
But in the 20th century, the revival of Cape Cod-style homes, also known as Cape Cod cottages, became extremely popular among middle-class families. Today, these sturdy homes can be found all over the United States.
Cape Cod-style homes are often compared to colonial homes — but have one big difference. Colonial homes feature bell-shaped roofs, while Cape Cod homes’ roofs are triangular in nature.
JUMP TO SECTION
- Traditional Cape Cod homes vs. Revival Cape Cod homes
- Defining elements of Cape Cod homes
- Types of Cape Cod homes
- Who should buy a Cape Cod-style home?
- Pros of buying a Cape Cod-style home
- Cons of buying a Cape Cod-style home
- Ways to finance a Cape Cod-style home
Traditional Cape Cod homes vs. Revival Cape Cod homes
Similarities between traditional Cape Cod homes and revival Cape Cod homes:
- Rectangular shape
- Steep roof pitch with side gables
- One to one-and-a-half stories of living area
- Large chimney
Differences between traditional Cape Cod homes and revival Cape Cod homes:
- Revival Cape Cod homes are much larger than traditional, featuring multiple bedrooms and living areas
- The second story of a revival Cape Cod home normally has extra bedrooms, while traditional Cape Cod homes use the area for storage
- Wooden shutters on revival Cape Cod homes are used purely for decoration, while traditional Cape Cod homes used them for weather purposes
British colonists who settled in America built the first Cape Cod-style homes during the 17th century. They were modeled after England’s half-timbered houses and adapted to survive the New England climate.
Settlers built traditional Cape Cod homes from wood and placed a door at the house’s center with double windows on both sides. Traditional homes are identifiable by their:
- Rectangular shape
- Steep roof pitch with side gables
- One-and-a-half stories of living
>>READ: 7 Things to Know About Buying a 100 Year Old House
Revival Cape Cod-style homes made a resurgence from the late 1930s through the 1950s thanks to Boston architect Royal Barry Willis.
Why the sudden boom? Cape Cods were inexpensive to mass-produce as thousands of soldiers returned home from war, searching for homes to settle down with their growing families.
Revival Cape Cod homes share many features with their centuries-old counterparts. A revival Cape Cod home has finished rooms in the second story and large dormers to expand the living space. Unlike traditional Cape Cod homes, chimneys are not placed in the center of the house but are instead placed on one of the sides of the home.
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Ways to finance a Cape Cod-style home
| Type of Loan | Pros of Loan | Cons of loan |
| Conventional mortgages | Good for borrowers who cannot make a down payment larger than 3% | Borrowers are required to pay private mortgage insurance |
| Jumbo mortgages | Non-conforming loan limits | Require more documentation than other types of loans |
| Government-insured mortgages | Great for first-time homebuyers with little to no down payment | There are specific requirements for each type of government-insured mortgage |
| Fixed-rate mortgages | Gives homebuyers stability with the same monthly payments | Interest rates may be higher due to fixed monthly payments |
| Adjustable-rate mortgages | Offers a cheaper way for borrowers who don’t plan on being in their home long term | Interest rates fluctuate based on market conditions |
There are several ways to finance your purchase of a Cape Cod-style home. You just have to find the mortgage that's perfect for you and fits all your needs as a home buyer.
Conventional mortgages
Conventional mortgages are loans not secured by the government. There are two types of conventional mortgages — conforming and non-conforming loans.
A conforming loan means the loan falls within maximum limits set by the Federal Housing Finance Agency (FHFA). Mortgages that don’t meet FHFA requirements are considered non-conforming loans.
Mortgage lenders require borrowers to pay private mortgage insurance when they put less than a 20% down payment.
Conventional mortgages are ideal for borrowers with:
- Strong credit
- Stable income
- Employment history
- Down payment of at least 3% interest
Jumbo mortgages
Jumbo mortgages have non-conforming loan limits. This means that the home price exceeds federal loan limits. The maximum conforming loan limit for single-family homes is $548,250 in 2021.
These mortgages are more common in higher-cost areas and require more in-depth documentation to qualify. Lenders will ask for credit scores, debt to income ratios, cash reserve statements, employment history, and an appraisal to confirm the value of the property you wish to purchase.
Jumbo mortgages are best for buyers purchasing high-end homes, have excellent credit, high income, and a substantial down payment.
Government-insured mortgages
Government-insured mortgages are backed by the Federal Housing Administration (FHA), the United States Department of Agriculture (USDA), and the Department of Veterans Affairs (VA).
These loans are ideal for homebuyers with low cash savings and minimal credit.
FHA loans
Federal Housing Administration (FHA) loans make it possible for borrowers who don’t have a large down payment or pristine credit to buy a home.
Borrowers of FHA-backed loans need a minimum credit score of 580 to get the FHA maximum of 96.5% financing with a 3.5% down payment.
USDA loans
The United States Department of Agriculture (USDA) backs loans to help moderate- to low-income borrowers looking for homes in rural areas.
The home must be located in a USDA-eligible area and meet specific income requirements.
VA loans
Mortgage loans backed by the Department of Veterans Affairs (VA) are flexible and feature low interest rates. They are available for current military service members, veterans, and their families.
VA loans do not require down payments or private mortgage insurance. Closing costs are typically capped.
Fixed-rate mortgages
Fixed-rate mortgages keep the same interest rate over the life of the loan — meaning the monthly mortgage payment always stays the same.
Fixed-rate mortgages come in 15-year, 20-year, or 30-year terms. They are best for borrowers who plan on staying in their homes long-term and are looking for stability with monthly payments.
Adjustable-rate mortgages (ARMs)
Adjustable-rate mortgages (ARMs) have fluctuating interest rates based on market conditions. Some ARM loans have a fixed interest rate for a few years before the loan changes to a variable interest rate for the remainder of the term.
ARMs are best for homebuyers who don’t plan on staying in their home long-term and are comfortable with some degree of risk.
>>MORE: ARM vs. Fixed-Rate Mortgages: How to Choose
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