As a first-time homebuyer, you have a lot to consider.
First and foremost, you should consider taking advantage of mortgage loan programs designed specifically for first-time homebuyers, which can save you money. Additionally, it’s essential to know exactly how much house you can afford. Doing so will drastically improve your chances of finding the home and mortgage loan to best fit your living needs, budget, and financial goals.
Our experienced mortgage team will help guide you through the entire process from start to finish and help you identify the best mortgage option for you.
We offer the following first-time homebuyer programs and are happy to discuss your options. To schedule a free no-obligation consultation, contact us.
MaineHousing Loans
We offer the following mortgage loan programs in conjunction with the Maine State Housing Authority (MaineHousing) an independent authority created by the Maine State Legislature to address unsafe, unsuitable, overcrowded, and unaffordable housing problems.
First Home Loan Program
MaineHousing’s First Home Loan Program is available to Maine residents with low to moderate income who have not held an ownership interest in their principal home within the past three years. Eligibility requirements must be met, including income limits, purchase price limits, and credit qualifications.
The First Home Loan Program offers these benefits:
- Little to no down payment is required.
- Loans have low fixed interest rates.
- Loans may be used for 1-4 unit homes. Loans can also be used for mobile homes, which are 20 years old or newer and permanently attached to land.
- By completing a hoMEworks-approved education class, program participants are eligible to receive $5,000 towards closing costs on a single-family home. If you buy a 2 – 4 unit home, you are eligible to receive $5,000 plus $3,000 for each additional unit in the home.
Salute ME and Salute Home Again
MaineHousing offers the Salute ME and Salute Home Again programs to show appreciation to Maine Veterans. These two mortgage loan programs are similar to the First Home Loan Program and include all the First Home Loan Program benefits plus an additional discount on the already low fixed interest rate.
You are eligible for these programs if you are on active duty, have been honorably discharged, or served on active duty for 180 days or within a war zone. National Guard members who meet the active duty/war zone requirement are eligible.
The difference between the two programs is that the Salute ME program is for first-time homebuyers and the Salute Home Again program is for non-first-time homebuyers.
USDA Rural Development Guaranteed
The USDA Rural Development Guaranteed loan program is a national program offered by the U.S. Department of Agriculture to low and moderate-income households in rural areas. Eligibility requirements must be met, including income limits, purchase price limits, and credit qualifications.
- Most areas in Maine are eligible (exceptions include Lewiston, Auburn, Bangor, Portland, South Portland, Falmouth, Westbrook, Cape Elizabeth, Scarborough, and several Casco Bay islands).
- You can finance up to 100% of the purchase price.
- Single-family homes, including condos, modular, manufactured, or planned unit developments, are eligible.
- Eligibility requirements must be met (income limits, purchase price limits, credit, etc.)
Conventional Fixed Rate Loans
A conventional loan is a mortgage loan that is not insured or guaranteed by a government entity. These loans do not have income limits.
- A small down payment is required.
- For homeowners with less than a 20% down payment, Private Mortgage Insurance (PMI) will be required. PMI protects the lender against loss if the borrower defaults on their mortgage loan. PMI can help buyers get into homes faster without requiring a large upfront down payment. For more information about Private Mortgage Insurance, check out the CFPB website.
Do you still have questions? We are here to help. To schedule a free no-obligation consultation, contact us.