What is a first mortgage?
A first mortgage is exactly what it says it is - the first loan on a certain piece of property. No other lien has been taken out on this home. When you first buy a house, the loan you typically receive is a first mortgage.
What is the Federal Housing Administration?
The Federal Housing Administration, generally known as "FHA”, provides mortgage insurance on loans made by FHA-approved lenders throughout the United States and its territories. FHA insures mortgages on single family, multifamily, manufactured homes and hospitals. It is the largest insurer of mortgages in the world; insuring over 34 million properties since its inception in 1934.
What is a Reverse Mortgage?A reverse mortgage is a loan that enables senior homeowners, age 62 and older, to convert part of their equity into a tax-free income - without having to sell their home, give up title to it, or make monthly mortgage payments. The loan only becomes due when the last borrower(s) permanently leaves the home.