Yes, and it must be paid off before house can be sold. It creates a lien, just like a first mortgage. A mortgage is a specific, fixed amount procured to buy a property or make improvements. The...
Every lender has different requirements, but the standard is 80% of your total home value. A $100k home may have up to $80k in loans against it. Some lenders will go to 90% or in some rare cases...
Lenders require steady income with a history that can be documented and a future that can be reasonably assumed. So a non-working retired person with a pension sufficient to meet the income...