Original loan taken out on a property
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What is the first mortgage definition?
First Mortgage Definition. If the property is sold or if the borrower defaults, the first mortgage is paid before any other mortgage lien on the property. Usually, the loan used to purchase the property is secured by the first mortgage. When you obtain a mortgage loan you will sign a promissory note, or a promise to repay the amount borrowed,…
What is a first mortgage lien?
A first mortgage is the primary lien on a property. A first mortgage is the primary loan that pays for the property, and the loan has priority over all other liens or claims on a property in the event of default. A first mortgage is not the mortgage on a borrower鈥檚 first home; it is the original mortgage taken on any one…
What is a mortgage loan?
Home Mortgage Learn About Mortgages Mortgage Glossary What is a Mortgage Loan? A mortgage loan is a loan secured by real estate owned by the borrower, in which the borrower grants the lender a lien, or mortgage, against the property.
What are the requirements for a first mortgage?
Requirements for a first mortgage can vary, based on the type of loan that you鈥檙e taking out. First mortgage requirements can vary based on whether you鈥檙e choosing a conventional loan or a government-backed loan, such as a Federal Housing Administration (FHA), U.S. Department of Agriculture (USDA), or U.S. Department of Veterans Affairs (VA) loan.