First-Time Home Buyer Programs in Maine

MaineHousing Programs:

First Home Loan Program:

Eligibility: Targets first-time homebuyers (no homeownership in the past three years), veterans using the program for the first time, or single parents who previously owned with a former spouse.
Offerings: Provides a 30-year fixed-rate mortgage (FHA, VA, USDA, or conventional) with competitive rates and down payment assistance options up to $5,000 as a grant (no repayment required).
Requirements:

• Income must not exceed regional limits (e.g., $126,500 for a 1-2 person household in Portland, $101,200 elsewhere as of 2025).
• Minimum credit score of 640 (varies by loan type).
• Debt-to-income ratio capped at 45% (50% with compensating factors).
• Homebuyer education course required.
• Purchase price limit of $400,000 (non-targeted areas) or $489,000 (targeted areas).

Advantage Program:

Benefits: Offers $5,000 as a non-repayable grant for down payment and closing costs; must be paired with a MaineHousing First Home Loan.
Eligibility: Same as First Home Loan; designed for buyers needing extra assistance with upfront costs.

Salute ME Program:

Description: Provides a 0.25% discount on the First Home Loan interest rate for veterans or active-duty military; combinable with Advantage or other MaineHousing assistance.
Requirements: Must meet First Home Loan criteria; proof of military service required (e.g., DD-214 or active-duty ID).

Local Programs:

Portland

Portland Housing Authority Down Payment Assistance: Offers up to $10,000 as a deferred loan (0% interest, due upon sale or refinance) for first-time buyers; income must be at or below 80% AMI (e.g., $77,350 for a family of four).

Bangor

Bangor Down Payment and Closing Cost Assistance: Provides up to $7,500 as a forgivable loan (forgiven after 5 years) for low- to moderate-income first-time buyers; income capped at 80% AMI.

Lewiston-Auburn

Community Concepts Homebuyer Program: Offers up to $15,000 as a deferred loan (0% interest, repayable upon sale) for first-time buyers; income must be below 80% AMI; homebuyer education required.

Additional Information:

• Mortgage Credit Certificate (MCC): Provides a federal tax credit of up to 25% of annual mortgage interest (max $2,000 yearly) for first-time buyers; fee applies; combinable with MaineHousing loans.
• FHA Loans: Minimum 3.5% down payment, suitable for credit scores as low as 580 (10% if below 580).
• USDA Loans: Zero-down payment for rural Maine areas; income limits apply.
• VA Loans: Zero-down payment for eligible veterans or active military.