Down Payment Assistance Programs for First-Time Homebuyers in Maine

Dubbed the “Pine Tree State,” Maine remains the largest state by area in the New England region of the northeastern United States. Overall, it’s the 9^th-most populous state despite its small area, making it the 12^th-smallest state by area in the country. It’s also not a very densely populated state. However, tourists from all over America visit it for its cultural festivals, rocking beaches, hiking trails, and campgrounds.

It’s famous for Maine lobster which attracts foodies from many parts of the US. The Cadillac Mountain serves as the highest point on the nation’s Atlantic Coast. Despite all these tourist attractions, Maine has not come out of its current housing crisis. The reason is simple: Maine doesn’t have enough homes for folks to move into and the ones standing vacant are unaffordable for low-income earners.

Looking for Assistance in a Specific Part of Maine?

This page gives an overview of the assistance programs available to first-time homebuyers in Maine. It’ll cover statewide and local resources. For specific information on down payment assistance in your area, refer to the local resource provided here:

.[GW1] 

Down Payment Assistance in Maine

The median home prices in Maine have risen dramatically since in the last year. They are up by 8.4%. So, an average house in Maine will cost first-time homebuyers around $414,000, as per Redfin.

However, you can leverage numerous down payment assistance programs to own a home in the state of Maine. Stairs Financial offers insights to prospective homeowners into some of these affordable housing programs. Locals can use this info to choose the ideal financial assistance option.

MainHousing Advantage

As per the MaineHousing Advantage Program, local homebuyers can get the financial assistance needed to meet the expenses of down payment and closing costs. MaineHousing is an independent quasi-state agency that aims to make affordable housing an affordable goal for locals. Prospective homeowners can also combine it with Salute ME, a program that offers a 0.5% discount on MaineHousing’s already low 30-year fixed interest rate for active duty, veteran, or retired military personnel.

Fundamentals

• Assistance type: Financial assistance
• Sponsor: MaineHousing
• Assistance amount: $5,000

Eligibility requirements

• The borrower must contribute at least 1% of the down payment amount.
• The borrower is required to complete homebuyer education.
• It’s mandatory to combine this assistance with the MaineHousing loan program.

MaineHousing Multi-Unit Advantage

For first-time homebuyers interested in buying up to 4 properties, this program offers generous financial assistance. As per the MaineHousing Multi-Unit Advantage Program, you can get down payment help for buying a property with up to 4 units.

Fundamentals

• Assistance type: Financial assistance
• Sponsor: MaineHousing
• Assistance amount: $14,000 (at max)

Eligibility requirements

• The borrower must contribute at least 1% of the down payment amount.
• The borrower is required to complete homebuyer education.
• It’s mandatory to combine this assistance with the MaineHousing loan program.

Maine Down Payment Assistance Program FAQs

Here are some common questions from first-time homebuyers in Maine seeking financial assistance with down payments:

1.  How do you apply for these programs?

Prospective first-time homebuyers may contact a local bank, credit union, mortgage company, or other credible lenders of MaineHousing. They will determine whether you stand eligible to receive a loan for a down payment or not. Then, you can apply for a MaineHousing mortgage.

2.  What are the income and purchase limits for these loans or grants?

Income and purchase price limits vary by different factors, such as location and household size. It’s better to look into the income/purchase limits of each program individually.

3.  Do you have to be a first-time homebuyer to qualify?

Fortunately, no! These programs require applicants to have no ownership record going back 3 years. But a person who owned a house more than 3 years ago can still get down payment assistance by getting a loan under these down payment assistance programs.

Disclaimer: This article is for informational purposes only and should not be considered as legal or financial advice. Please consult an attorney, mortgage lender, or CPA for guidance on your specific situation.

 [GW1]