What type of loan is considered junior to the initial loan it wraps around?

A wrap-around loan is designed to cover an existing loan while also providing additional financing to the borrower. In this type of loan, the wrap-around essentially 'wraps' around the primary or initial loan and allows the borrower to secure a new loan without completely refinancing the original debt. The borrower makes payments on the wrap-around loan, which in turn covers the payments on the original loan.

This structure is beneficial because it can provide a way for the borrower to access additional funds without having to disturb the existing loan terms, which may have favorable conditions. Since the wrap-around loan is secondary to the original loan, it is classified as junior to the first mortgage or loan. The other options represent different loan structures that do not inherently wrap around an existing loan, and thus, do not fulfill the criteria set by the question.