First Generation Program

What is First Generation Program?

First Generation Program is a forgivable loan for homebuyers in Statewide, Maine.

• MaineHousing's First Generation Program: up to $10,000 forgivable second-mortgage DPA for first-generation homebuyers (parents/grandparents have not owned in past 7 years, or borrower aged out of foster care). Pairs with First Home Loan first mortgage and standard $5,000 Advantage DPA for combined up-to-$15,000 assistance. 5-year forgiveness. 640 FICO. Statewide.
• MaineHousing's First Generation Program provides up to $10,000 in additional down-payment / closing-cost assistance on top of MaineHousing's standard $5,000 Advantage DPA second mortgage - for combined assistance of up to $15,000. The program is designed to address the inter-generational wealth gap by helping first-generation homebuyers (those whose parents or grandparents have not owned a home in the past 7 years, or borrowers who aged out of foster care) achieve homeownership. The $10,000 First Generation assistance is structured as a 0% interest forgivable second mortgage, forgiven on a pro-rata basis over 5 years of continued owner-occupancy. The program pairs with MaineHousing's First Home Loan first mortgage (30-year fixed FHA, VA, USDA-RD, or HFA conventional) and the standard Advantage DPA option. Borrower must contribute at least $1,000 of own funds. Income and acquisition-cost limits follow MaineHousing's standard First Home Loan limits (statewide income up to $98,900 1-2 person / $113,735 3+ person.
• targeted/higher-cost county income up to $111,100 1-2 / $149,270 3+.
• purchase price $525,000 non-targeted to $775,000 targeted). 640 minimum FICO. Homebuyer education (hoMEworks) required.
• Funding comes from State and Bond.

Do you have to pay it back?

First Generation Program is forgiven after 5 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Forgiven pro-rata over 5 years of continued owner-occupancy (1/5 per year). Unforgiven balance due on sale, refinance with cash-out, transfer of title, or non-owner-occupancy before 5 years. No monthly payment.
• The assistance is recorded in 3rd Lien position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

First Generation Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

First Generation Program limits household income to $149,270.

• 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?

First Generation Program caps the purchase price at $525,000.

• Eligible property types include Single-family detached, 2-4 unit owner-occupied (per first-mortgage overlays), condominium (project-approved), townhouse, PUD, modular, and manufactured home on permanent foundation (titled as real property and per first-mortgage overlays).
• New construction is eligible.
• Manufactured homes are eligible.

Is there eligibility for specific groups?

First Generation Program names first-generation buyers 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?

First Generation Program serves buyers purchasing in Statewide, Maine.

• The program targets specific areas: Federally designated targeted census tracts (per IRS Section 143) where MRB first-time-homebuyer requirement is waived and higher income / acquisition-cost limits apply. Higher-cost counties (Cumberland, York, Sagadahoc) also have higher acquisition-cost limits up to $775,000.

How do you apply?

Applications for First Generation Program go through the administering agency, 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 MaineHousing-approved hoMEworks homebuyer education class (in-person or online) required prior to closing..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Reserved through MaineHousing's online lender portal (Lender Online) at time of rate lock by approved participating 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.