Definition
An SBA loan program restricted to owner-occupied commercial real estate and heavy equipment, structured as a bank first mortgage (50%), an SBA debenture (40%) with a long-term fixed rate, and 10% borrower equity. It cannot finance working capital or a business acquisition on its own.
See SBA 504 and 7(a) options for Bakersfield business owners →Related Loan Types Terms
A mortgage with an interest rate that changes periodically based on a market index after an initial fixed-rate period. Common structures include 5/1, 7/1, and 10/1 ARMs, where the first number is the fixed period in years and the second is how often it adjusts after that.
A mortgage not insured or guaranteed by the federal government. Conventional loans typically require a minimum 3% down payment and a 620+ credit score, and follow guidelines set by Fannie Mae and Freddie Mac.
A mortgage insured by the Federal Housing Administration. FHA loans allow down payments as low as 3.5% with a 580+ credit score, making them popular with first-time homebuyers and those with limited savings.
A mortgage where the interest rate stays the same for the entire loan term. Your principal and interest payment never changes, making long-term budgeting predictable regardless of what happens in the market.
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