Finance
Pennsylvania's 'first mortgage' requirement for FHA loans means:
AFHA insures only the first mortgage a borrower has ever taken
BFHA-insured loans must be secured by a first lien position on the property✓ Correct
CThe FHA requires the first mortgage payment before closing
DThe property must be a first home purchase
Explanation
FHA-insured loans must be in first lien position — the FHA lien must be senior to all other liens on the property. Down payment assistance second mortgages (like PHFA's Keystone Advantage) are subordinated to the first FHA mortgage and must meet FHA's requirements for subordinate financing.
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