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First Home Loan Program

Maine State Housing Authority (MaineHousing) · Maine

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Income limit

$120,750

The household income limit the program publishes

Price cap

$525,000

Highest purchase price the program allows

What is First Home Loan Program?

First Home Loan Program is a first mortgage for homebuyers in Maine, administered by Maine State Housing Authority (MaineHousing).

  • MaineHousing's First Home Loan Program offers 30-year fixed-rate first mortgages at below-market interest rates to first-time homebuyers (and certain exempt groups), with little or no down payment when paired with FHA, VA, RD, MHSI, or private mortgage insurance. The loan can be combined with the Advantage option for $5,000 in down payment and closing-cost assistance, Purchase Plus Improvement for repairs, and Maine HOPE unemployment payment protection. Loans are funded by mortgage revenue bonds and purchased and serviced by MaineHousing after closing.
  • Below-market fixed interest rate.
  • Zero-point and two-point options.
  • Little or no down payment with mortgage insurance.
  • Stackable with $5,000 Advantage DPA.
  • Purchase Plus Improvement up to $35,000 for repairs.
  • Maine HOPE unemployment payment protection (4 payments as no-interest junior lien).
  • Federal recapture tax reimbursed by MaineHousing.
  • Loan stays with MaineHousing (not sold).
  • Funding comes from Mortgage revenue bonds (MaineHousing-issued).

Do you have to pay it back?

First Home Loan Program is a first mortgage and is repaid under the terms set by Maine State Housing Authority (MaineHousing).

  • The assistance is recorded in first 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 Home Loan Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

The program requires

  • First-time homebuyer — with exceptions: Considered first-time if no ownership interest in principal residence in past 3 years (even prior homeowners qualify). Also eligible: current/former owner of an unattached mobile home on leased land; veterans, retired or active-duty military (via Salute ME) if any currently owned home is sold by closing.
  • The home is occupied as a primary residence
  • On credit: Minimum credit score of 640; acceptable credit history required.
  • Residency: Property must be in Maine; owner-occupied as primary residence.
  • Apply only through approved First Home Lenders; MaineHousing does not review the loan before closing. Lender must use the strictest of MaineHousing vs. mortgage-insurer guidelines. Required docs include Applicant Certification, Closing Affidavit, 3 years of federal tax returns per borrower/title holder, and a lender-completed income eligibility worksheet. Base loan does not require homebuyer education (only required when Advantage is used). max_dti, max_liquid_assets, and exact targeted-area list unconfirmed.

The program excludes

  • Purchases above the $525,000 price cap
  • Households above $120,750

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

First Home Loan Program 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?

First Home Loan Program 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?

First Home Loan Program 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?

First Home Loan Program serves buyers purchasing anywhere in Maine.

  • The program targets specific areas: Federal Targeted Areas exist where income limits may be higher; specific area list not published on the limits page.

How do you apply?

Applications for First Home Loan Program go through Maine State Housing Authority (MaineHousing), which publishes the current terms and the application steps on its own site.

  1. Contact Maine State Housing Authority (MaineHousing) to reserve funds

    Funds are reserved through Lender reserves/locks the loan with MaineHousing after an executed Purchase & Sale agreement; rate is the rate in effect at reservation., and are subject to availability.

  2. 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.

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