Definition
This is your main mortgage—the lender's senior loan that takes priority if anything goes wrong. It's the loan you're most familiar with and has the lowest interest rate.
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First mortgage has priority in default. Paid before second mortgages or liens. Lowest interest rate due to priority. Most common mortgage type. Lender protects through first lien position. Default triggers foreclosure. First mortgage amount typically 80-95% of value. Conventional mortgage is first mortgage. FHA/VA/USDA are first mortgages. Second mortgages subordinate to first. Clear title required for first mortgage. Strategic importance in financing structure.
Pro Tip
First mortgages provide the lowest rates. Strategic financing structure matters.
Example
First mortgage of $400,000 was senior to down payment assistance second mortgage.