Every Mortgage Loan Program Available in Bakersfield

FHA loans are the most common first-time buyer program in Kern County because they accept lower credit scores and smaller down payments than conventional loans. The Federal Housing Administration insures the loan, which allows lenders to take on borrowers who don't meet the stricter guidelines required for conventional financing.

FHA is also a strong fit for borrowers with recent credit events. Dan has closed FHA loans for borrowers 2 years out of bankruptcy, 3 years out of foreclosure, and for buyers with credit scores as low as 580 using legitimate compensating factors. The FHA loan limit in Kern County for 2026 is $541,287, which covers most Bakersfield purchases. A 3.5% down payment on a $340,000 home is $11,900.

The tradeoff: FHA requires both an upfront mortgage insurance premium (1.75% of loan amount) and an annual MIP of approximately 0.55%, which stays for the life of the loan in most cases. Borrowers who can qualify for conventional at 5% or 10% down often save money long-term by avoiding permanent MIP. Dan runs this comparison for every FHA-eligible borrower.

Conventional loans are backed by Fannie Mae and Freddie Mac and represent the largest share of Bakersfield purchase transactions. They offer the most flexibility in property types, loan amounts, and mortgage insurance options, and for borrowers with 620+ credit and stable income, often provide the lowest total cost of financing.

One of the most misunderstood aspects of conventional loans is PMI. Unlike FHA MIP which stays for the life of the loan, conventional PMI can be cancelled once you reach 20% equity. A borrower who puts 5% down, makes regular payments, and benefits from any appreciation can request PMI removal in 3-5 years, sometimes sooner. Dan structures conventional loans to minimize the PMI period wherever possible.

Conventional loans also allow 97% financing (3% down) through Fannie Mae's HomeReady and Freddie Mac's Home Possible programs, which are targeted at low-to-moderate income buyers. These have income limits and require homebuyer education, but they can be layered with CalHFA down payment assistance.

Jumbo loans cover purchase prices above the Kern County conforming limit of $832,750. In Bakersfield, this primarily applies to Seven Oaks, Stockdale Estates, and other high-end developments, as well as to buyers trading up from larger homes or relocating from higher-cost markets. Dan works with jumbo-specialist lenders who compete aggressively for high-credit-score borrowers.

DSCR (Debt Service Coverage Ratio) loans qualify based on the rental income the investment property generates, not the borrower's personal income. No tax returns, no W-2s, no employment verification. If the property's gross monthly rent covers the mortgage payment, you qualify. Bakersfield is one of the few California markets where DSCR math works at current prices and rates.

A reverse mortgage lets homeowners 62 and older convert home equity into tax-free cash, a monthly income payment, or a flexible line of credit, with no monthly mortgage payment required. Bakersfield's senior homeowners have often accumulated significant equity and can benefit from the FHA-insured HECM program or proprietary reverse mortgages for higher-value homes.

The loan is repaid when the borrower sells, moves out permanently, or passes away. Heirs keep any remaining equity after the balance is repaid. FHA non-recourse protection ensures neither you nor your heirs can owe more than the home is worth. Non-borrowing spouses under 62 are protected under current HUD rules.

Dan's commercial division handles 5+ unit apartment buildings, mixed-use properties, retail, office, industrial, and agricultural land financing throughout Kern County and nationwide. Commercial loans are structured differently from residential, with underwriting based on the property's net operating income (NOI), debt service coverage, and appraisal.

Bakersfield's commercial market includes a growing multifamily sector driven by rental demand, as well as industrial development tied to logistics and energy. Dan structures SBA loans for business owner-users, conventional commercial for investors, and portfolio loans for clients with multiple commercial properties.