MaineHousing’s First Home Loan Program makes it easier and more affordable to buy a home of your own by providing low fixed interest rate mortgages. There are options with little or no down payment required, and if you still need help with the cash for closing costs, we also offer a down payment and closing cost assistance option called Advantage.
You must apply for a MaineHousing loan at one of our approved lenders.
MaineHousing has prepared 6 steps to simplify the home-buying process and give you the info you’ll need to know on your road to homeownership. Click on the graphic below to read more about each step.
Estimate monthly payments, the cost of mortgage insurance, what you might need at closing for a down payment and determine if you can afford a home.
Does homeownership make sense at this point in your life? Learn about the relative costs, benefits, and challenges of owning versus renting a home.
Steps To Homeownership
MaineHousing has prepared 11 steps to simplify the home-buying process and give you the info you’ll need to know on your road to homeownership.
Click on a title below to expand each section and learn more about the advantages of keeping your mortgage in Maine with a mortgage from MaineHousing.
Little or No Downpayment
The Advantage option can provide $5,000 toward the cash you need for closing. Applicants choosing Advantage must take a hoMEworks-approved homebuyer education class prior to closing and must make a minimum borrower contribution of 1% of the loan. The cost of the homebuyer education class counts towards the 1% contribution. Advantage Summary Sheet
When a MaineHousing mortgage is combined with a government guaranty (FHA/RD/ VA) or with a MaineHousing approved private mortgage insurance company, little or no down payment is required.
MaineHousing is currently offering a private mortgage insurance pilot program with Arch MI for one Unit Single Family properties and approved Condominiums located in the cities of Bangor, Lewiston, Auburn, Westbrook, Portland or South Portland only. MaineHousing Quick Guide
Low Fixed Interest Rates
MaineHousing’s low interest rates can save our average homebuyer thousands of dollars over the full term of the loan.
Discount points may be paid at closing to reduce your interest rate. MaineHousing offers both a zero point and a two point mortgage option. Whether payment of points makes financial sense for you may depend on how long you think you’ll stay in your home without refinancing your mortgage. Current Rate Sheet
Payment Protection
First Home Loan mortgages also come with payment protection for unemployment. If you are a MaineHousing borrower in good standing and become unemployed, Maine HOPE – HomeOwnership Protection for unEmployment– may be able to help by advancing up to four of your mortgage payments, including taxes and homeowners insurance. The amount paid becomes a junior mortgage lien, with no interest and no monthly payments, that is repaid when you sell or pay offyour MaineHousing mortgage or stop using the home as your primary residence. It’s a little added protection for you and the investment you’ve made in your home.
Home Improvements Included
The Purchase Plus Improvement option finances the purchase and needed repairs of a home with one loan. If you are eligible, you may include between $500 and $35,000 for home improvements in your mortgage, as long as the cost of the home plus improvements does not exceed program purchase price limits. Purchase Plus Improvement Summary Sheet
Financing Mobile Homes
MaineHousing offers mortgages for single- and double-wide mobile homes located on owned or leased land. With this program option, there is a purchase price limit of $200,000 statewide, interest rates are a little higher, and the term of the loan is based on the age of the mobile home. Mobile Home Self-Insured Summary Sheet
Multi-Unit Advantage
The Multi-Unit Advantage option can provide $5,000 in closing costs and down payment assistance for each residential unit in two to four unit properties. For two units Advantage is $8,000, three units is $11,000, and four units is $14,000. Applicants must complete an approved landlord education course in addition to a hoMEworks-approved homebuyer education class prior to closing and must make a minimum borrower contribution of 1% of the loan as accepted by the mortgage insurer. Multi-Unit Advantage Summary Sheet
First Generation Program
If you have never lived in a home owned by your biological parents, or legal guardians, or have been in foster care at some point in your childhood, then you may qualify for $10,000 in down payment and closing cost assistance through the First Generation Program.
Military Personnel Discount
If you are an active duty, veteran, or retired military personnel, you may qualify for a .50% discount on our already low First Home Loan 30-year fixed interest rate with the SaluteME program, whether or not you are a first-time home owner.
