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HomeBank LoanMaine First-Time Homebuyer Applications | The Lenders Community

Maine First-Time Homebuyer Applications | The Lenders Community


Get Pre-Approved for a Mortgage and Check Rates

 

First-time homebuyers in Maine may be eligible for financial assistance that can be used for their down payment and closing costs on a new home purchase. All programs and grants for homebuyers in Maine are included on this page.

Requirements

  • Must be a first-time homebuyer (a first-time homebuyer is defined as someone who has not owned a home in the last three years) OR be a veteran, retired military, or on active duty
  • Income cannot exceed the program income limits
  • Minimum 640 credit score

What kind of home can I buy?

  • New and existing single-family homes
  • Owner-occupied, 2- to 4-unit apartment buildings
  • Condominiums
  • Permanently attached mobile homes built within the last 20 years (Mobile home may be located on owned or leased land)

 

Advantage Down Payment Assistance (DPA)

The Advantage DPA Program provides up to $3,500 that can be used for the down payment and/or closing costs. At least 1% of the purchase price must come from the applicant and are required to take a hoMEworks-approved homebuyer education class. Advantage Summary Sheet

Multi-Unit Advantage Program

Provides up to $5,000 in assistance for each unit in 2-4 until multi-family properties. 2 units = $8,000, 3 units = $11,000, 4 units = $14,000. At least 1% of the purchase price must come from the applicant and are required to take a hoMEworks-approved homebuyer education class. Multi-Unit Advantage Summary Sheet

Purchase Plus Improvement Program

Finance the purchase of a home and repairs with a single home loan with the Purchase Plus Improvement Program. Eligible borrowers can receive up to $35,000 in additional funds for needed repairs and property upgrades. Purchase Plus Improvement Summary Sheet

Mobile Home Self-Insured Option

MaineHousing self-insures eligible mobile home loans having a loan-to-value greater than 80% and less than or equal to 95%. Borrowers are required to pay a higher interest rate in lieu of paying mortgage insurance. Eligible property types include single-wide and double-wide mobile homes located on owned land, approved parks, or privately leased lots.

Requirements

  • Must be a first-time homebuyer (a first-time homebuyer is defined as someone who has not owned a home in the last three years) OR Be a veteran, retired military, or on active duty Salute ME Summary
  • Persons who have owned an unattached mobile home on leased land
  • Maximum debt ratios: 33% for housing (PITI) / 43% for total debt-to-income
  • Minimum 640 credit score
  • Property price limit of $200,000 maximum statewide

 

Property Requirements

  • Single-wide and double-wide mobile homes < 20 years of age, must be permanently attached per code at the time of closing
  • Must be owner-occupied within 60 days of closing
  • Units located in an approved park require a written lease with the same term as the mortgage
  • Commercial use limit. Must not use more than 15% of the residence for trade or business. Includes total square footage of all buildings

 

National First-Time Homebuyer Loans

  • FHA LoansFHA home loans are very popular with first-time homebuyers cause they require a 580 credit score with just a 3.5% down payment. Debt-to-income ratios up to 50% are allowed making them perfect for low-income borrowers.
  • Conventional LoansConventional loans require a 620 credit score and a 5% to 20% down payment. If you put 20% or more down, mortgage insurance will not be required.
  • USDA LoansUSDA mortgage loans are for low-to-median income borrowers buying a home located in a USDA-eligible rural area. They provide 100% financing with a 620 or higher credit score. Mortgage insurance is required but the rate is the lowest of any type of mortgage program available.
  • VA Loans – Veterans of the U.S. military may be eligible for a VA home loan. No down payment or mortgage insurance is required and veterans with a 580 to 620 credit score are eligible.
  • HomeReady and Home Possible Loans – Freddie Mac and Fannie Mae created the HomeReady and Home Possible loan programs for low-income first-time homebuyers whose income does not exceed 100% of the area median income requiring just a 3% down payment and a 620 credit score.

 

Helpful Resources

 

Helpful Links for Homebuyers in Maine

Getting Started

  • Housing counseling agencies – free or low-cost counseling services for buying, renting, defaults, foreclosures, credit issues and reverse mortgages
  • Predatory lending – beware if you’re buying or refinancing your home; don’t become a victim of unfair lending practices

Buying a Home

Owning and Maintaining Your Home

 

Other Maine Resources

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