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.

First Generation Program is forgiven after 5 years, so a homebuyer 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.

First Generation Program is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: First-time homebuyer requirement waived in federally designated targeted census tracts and for qualifying veterans (via SaluteME / Salute Home Again). First-generation requirement (no ownership by parents/grandparents in past 7 years) is the program-defining criterion. On credit, the program states: 640 minimum FICO across all eligible first-mortgage products. A homebuyer education course is required, through MaineHousing-approved hoMEworks homebuyer education class (in-person or online) required prior to closing. Residency requirement: Property must be located in Maine and be the borrower's primary residence. Statewide eligibility. Citizenship or immigration status: U.S. citizen, permanent resident, or qualifying non-permanent resident alien per first-mortgage product overlays. FIRST-GENERATION HOMEBUYER REQUIREMENT: Borrower (and any co-borrower) must qualify as a first-generation homebuyer, defined as: (a) borrower's parents and grandparents have not owned a home within the past 7 years, OR (b) borrower aged out of foster care. At least one borrower must meet the first-generation definition. First-time homebuyer required (no ownership of a primary residence in the past 3 years; waived in federally targeted areas). Owner-occupied primary residence. 640 minimum FICO. Maximum 45% DTI. Borrower must contribute a minimum of $1,000 of own funds. Income at or below MaineHousing First Home Loan limits ($98,900 1-2 person / $113,735 3+ person non-targeted; $111,100 1-2 / $149,270 3+ targeted). Maximum purchase price $525,000 non-targeted / $775,000 targeted/higher-cost county. hoMEworks homebuyer education required. Pairs with First Home Loan first mortgage + Advantage DPA second.

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.

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.

First Generation Program names first-generation homebuyers 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.

First Generation Program serves homebuyers 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.

Applications for First Generation Program go through the administering agency, which publishes the current terms and the application steps on its own site. Funds are reserved through Reserved through MaineHousing's online lender portal (Lender Online) at time of rate lock by approved participating 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.