Advantage Down Payment & Closing Cost Assistance Option

What is Advantage Down Payment & Closing Cost Assistance Option?

Advantage Down Payment & Closing Cost Assistance Option is a grant for homebuyers in Maine, administered by Maine State Housing Authority (MaineHousing).

• Advantage is MaineHousing's $5,000 down payment and closing cost assistance option layered onto a First Home, Salute ME, or Mobile Home Self-Insured first mortgage. It is a true grant - no second mortgage, no lien, no interest rate add-on, and it does not increase the loan amount. Funds cover down payment, closing costs, and prepaid escrow expenses; borrowers must complete a hoMEworks homebuyer education class and contribute a minimum of 1% of the loan amount (which may be a gift).
• $5,000 grant toward down payment and closing costs.
• No second mortgage and no lien.
• No interest rate add-on.
• Does not increase loan amount.
• No liquid asset test.
• 1% borrower contribution may be a gift and includes education class cost.
• Can be combined with FHA/VA/RD/MHSI/Uninsured/PMI.
• Funding comes from MaineHousing.

How much assistance does it provide?

Advantage Down Payment & Closing Cost Assistance Option offers up to $5,000 in assistance.

• Award tiers: Single-unit/standard $5,000. Multi-unit handled under the separate Multi-Unit Advantage option (2-unit $8,000; 3-unit $11,000; 4-unit $14,000).
• Buyer contribution: Minimum borrower cash contribution of 1% of the loan amount is required and may be a gift. The cost of the homebuyer education class counts toward the 1%. For MHSI the 1% can be met within the required 3% own-funds portion of the 5% down payment.
• The program can be combined with First Home Loan, Salute ME, Mobile Home Self-Insured, Purchase Plus Improvement, Uninsured; cannot use the 2-point option with Advantage.
• Amounts are the program's published maximums, not an offer — Maine State Housing Authority (MaineHousing) determines any individual award.

Do you have to pay it back?

Advantage Down Payment & Closing Cost Assistance Option is structured as a grant, so it is not repaid.

• Repayment is triggered by No repayment - Advantage is not a second mortgage and carries no lien; it does not increase the loan amount.
• The assistance is recorded in none position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Advantage Down Payment & Closing Cost Assistance Option is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Advantage Down Payment & Closing Cost Assistance Option limits household income to $120,750.

• The limit applies to total household income, not only the borrower’s.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

Advantage Down Payment & Closing Cost Assistance Option caps the purchase price at $525,000.

• Eligible property types include single_family, condominium, 2-4_unit_owner_occupied, and manufactured_mobile_home.
• New construction is eligible.
• Manufactured homes are eligible.

Is there eligibility for specific groups?

Advantage Down Payment & Closing Cost Assistance Option names veterans and active-duty service members among the groups it serves.

• Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Where does it apply?

Advantage Down Payment & Closing Cost Assistance Option serves buyers purchasing anywhere in Maine.

• The program targets specific areas: Income limits may be higher in Federal Targeted Areas (per underlying First Home program).

How do you apply?

Applications for Advantage Down Payment & Closing Cost Assistance Option go through Maine State Housing Authority (MaineHousing), which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through hoMEworks-approved live or online homebuyer education class (mainehomeworks.org) - same provider list as First Home Loan..

2. 2

   Contact Maine State Housing Authority (MaineHousing) to reserve funds

   Funds are reserved through Reserved with the underlying First Home/Salute ME/MHSI loan through the lender., and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.