{"ok":true,"canonical_url":"https://dealroom.so/glossary/first-mortgage","api_url":"https://dealroom.so/api/public/glossary/first-mortgage","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"first-mortgage","term":"First Mortgage","group":"Doing the deal","definition":"This is the primary lien on real estate, giving the holder the highest claim on the property if the borrower defaults. For SBA loans, this is usually held by the lender.","what_it_means":"If your business acquisition includes commercial real estate, the SBA lender will require a first mortgage on that property. This ensures their security interest is senior to any other claims. Understand this lien's implications for future property use or refinancing.","url":"https://dealroom.so/glossary/first-mortgage","official_sources":[{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"}],"related":[{"slug":"mortgage","term":"Mortgage","url":"https://dealroom.so/glossary/mortgage"},{"slug":"lien","term":"Lien","url":"https://dealroom.so/glossary/lien"},{"slug":"collateral","term":"Collateral","url":"https://dealroom.so/glossary/collateral"},{"slug":"security-interest","term":"Security Interest","url":"https://dealroom.so/glossary/security-interest"}],"related_questions":[{"question":"When is a leasehold mortgage acceptable as collateral for an SBA 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/when-is-a-leasehold-mortgage-acceptable-as-collateral-for-an-sba-7-a-loan"},{"question":"Can I use an SBA 7(a) loan to refinance my existing business mortgage?","url":"https://dealroom.so/sba-loans/basics/can-i-use-an-sba-7-a-loan-to-refinance-my-existing-business-mortgage"},{"question":"Can an SBA 7(a) loan be used to refinance an existing commercial mortgage?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-be-used-to-refinance-an-existing-commercial-mortgage"},{"question":"Can I use funds from a second mortgage on my personal home for my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-i-use-funds-from-a-second-mortgage-on-my-personal-home-for-my-equity-injection"},{"question":"What if I want to use a second mortgage on my personal residence for equity injection?","url":"https://dealroom.so/sba-7a/questions/what-if-i-want-to-use-a-second-mortgage-on-my-personal-residence-for-equity-injection"},{"question":"How does a leasehold mortgage on the business property serve as collateral for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/how-does-a-leasehold-mortgage-on-the-business-property-serve-as-collateral-for-an-sba-7-a-"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — First Mortgage","url":"https://dealroom.so/glossary/first-mortgage","source_type":"DealRoom Data"}}