Maine Programs Offer Up to $10,000 in Down-Payment Help Amid Housing Squeeze
First-time buyers face high prices and rates, but a state loan program near 5.5% and other aid can help cover costs.
Rising home prices and high mortgage rates continue to make homeownership difficult for many Mainers, but a range of state and federal programs offer assistance, according to a Bangor Daily News guide. The Maine State Housing Authority's First Home Loan program provides fixed-rate 30-year mortgages that more than 55,000 buyers have used, with interest rates around 5.5% as of May 21.
To qualify, applicants must not have owned a home in the past three years, meet income limits and complete a hoMEworks homebuyer education class. A Bangor household of one or two people cannot earn more than $103,400 a year, and a single-family home purchase there cannot exceed $525,000. A related Advantage option adds $5,000 toward closing costs. MaineHousing's First Gen program is for buyers who never lived in a home their parents or guardians owned, or who spent time in foster care; it provides $10,000 toward a down payment and closing costs plus a lower rate on the First Home Loan.
Federal programs also help Maine buyers. The Federal Housing Administration insures mortgages to lower down payments, the Department of Veterans Affairs offers loans for veterans and service members, and the U.S. Department of Agriculture provides loans for buyers in rural areas, which cover most of Maine outside Portland, Lewiston and Bangor.
This story was first reported by Bangor Daily News.
