First Mortgage
The first mortgage is on property of the main liens. As payment for property the principal of the loan, if the event of default, it takes precedence over the property of all other liens or claims. The first mortgage is not the borrower first home mortgage; it is of any item of property for the original mortgage. It is also known as first lien
The first mortgage is on property of the original loan. Buyers name may have more than one property; however, to guarantee each item of property taken of the original mortgage constitutes a first mortgage. For example, if the owners of their three homes are each applying for a mortgage, then the three mortgage loans in each of the first mortgage.
First mortgage requirements may vary, depending on how you choose a conventional loan or a government-backed loans, such as Federal Housing Administration (FHA), the U.S. Department of Agriculture (USDA) or the United States Department of Veterans Affairs (VA) loans.
These requirements will impact:
- Eligibility the minimum required credit score
- The amount of down payment
- Settlement costs, and the seller can pay how much percentage of the settlement costs
- Loan repayment terms
- Rate