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.

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). Homebuyer 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.

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.

Advantage Down Payment & Closing Cost Assistance Option is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: Same as underlying First Home loan (first-time defined as no ownership interest in past 3 years; waived for veterans/active-duty via Salute ME and for unattached mobile-home-on-leased-land owners). On credit, the program states: Minimum credit score of 640 (per underlying First Home/MHSI requirements). A homebuyer education course is required, through hoMEworks-approved live or online homebuyer education class (mainehomeworks.org) - same provider list as First Home Loan. Residency requirement: Maine property, owner-occupied as primary residence. No cash back at closing; excess assistance must reduce the loan and any principal reduction must be under $500. The 2-point rate option is ineligible.

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.

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.

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.

Advantage Down Payment & Closing Cost Assistance Option serves homebuyers purchasing anywhere in Maine. The program targets specific areas: Income limits may be higher in Federal Targeted Areas (per underlying First Home program).

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. Funds are reserved through Reserved with the underlying First Home/Salute ME/MHSI loan through the lender. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.