Maine First-Time Homebuyer Help Packages

Folks have been clamoring for a chunk of Maine. In 2023, it made Atlas Van Traces’ Annual Migration Patterns Examine because the primary hottest state to maneuver to.

Whereas which means there’s a whole lot of competitors on the market for first-time homebuyers, there are additionally a number of help applications accessible to assist degree the enjoying area. The Maine State Housing Authority, referred to as MaineHousing, connects first-time consumers with mortgage choices and help applications to assist make homeownership extra inexpensive. In Maine, you’re thought-about a first-time purchaser for those who haven’t owned a house previously three years.

Maine first-time homebuyer applications

MaineHousing gives 30-year mortgages with low fastened charges and little to no down fee. For first-time homebuyers, choices embrace:

MaineHousing First Dwelling Mortgage Program

MaineHousing’s First Dwelling Mortgage Program offers first-time homebuyers with 30-year, fixed-rate mortgages, both as a standard, FHA, VA or USDA mortgage. There’s little to no down fee required with many of those choices. You may couple this mortgage with MaineHousing’s down fee and shutting price help program, dubbed “Benefit,” to maximise financial savings.

The First Dwelling Mortgage Program gives zero- and two-discount level rate of interest choices, with every level equaling 1 % of the quantity borrowed. You may pay for factors upfront to decrease your rate of interest.

First Dwelling Mortgage mortgages additionally embrace fee safety in case you lose your job. By means of Maine HOPE (“Dwelling Possession Safety for unEmployment”), debtors in good standing who grow to be unemployed can obtain an advance of as much as 4 mortgage funds, together with taxes and householders insurance coverage. The funds are packaged as a no-interest junior lien that you just solely must repay once you promote the house or repay the primary mortgage.

Borrower necessities:

Property necessities:

  • Have to be a single-family residence, two- to four-unit owner-occupied condo constructing, condominium or cellular residence
  • Should meet MaineHousing buy value limits

Since MaineHousing mortgages are financed with mortgage income bonds, you may be topic to a federal recapture tax. Which means for those who promote your private home inside 9 years of shopping for it and make a revenue on the sale, and your revenue has risen considerably, the feds may tax a portion of the cash you saved by having a MaineHousing mortgage. As of 2013, those that do pay this tax would possibly qualify for a reimbursement from MaineHousing.

MaineHousing Salute ME

By means of MaineHousing’s Salute ME program, active-duty, veteran and retired navy members can qualify for a 0.5 % {discount} on a First Dwelling 30-year fixed-rate mortgage. As with the First Dwelling mortgage program, debtors should meet revenue and buy value limits to qualify. Limits are based mostly on the variety of folks in a family and the house’s location.

The company waives the first-time homebuyer requirement for individuals in this system, however debtors should have both remained on lively responsibility for 180 days or been inside a conflict zone, or have been honorably discharged from navy service. Nationwide Guard members who meet the necessities are eligible, as properly.

Property necessities:

  • New and present properties
  • Proprietor-occupied two- to four-unit condo buildings
  • Condominiums
  • Cell properties constructed inside the final 20 years and positioned on leased or owned land

MaineHousing Self-Insurance coverage for Cell Properties

MaineHousing’s Self-Insurance coverage for Cell Properties possibility gives mortgages for first-time homebuyers of a single- or double-wide residence on owned or leased land. By means of this program, the company self-insures cellular residence loans with a loan-to-value (LTV) ratio between 80 % and 95 %. In change, debtors pay the next rate of interest, fairly than pay for mortgage insurance coverage.

Borrower necessities:

Property necessities:

  • Have to be a completely connected cellular residence constructed inside the final 20 years (an unattached cellular residence on leased land may qualify)
  • Should not use greater than 15 % of the property for enterprise functions
  • Most $200,000 buy value for leased land and $250,000 for owned land

MaineHousing Buy Plus Enchancment Program

MaineHousing’s Buy Plus Enchancment (PPI) Program means that you can finance a house buy and repairs with a single mortgage, supplied the price of the house and the repairs doesn’t exceed First Dwelling Mortgage buy value limits.

The PPI mortgage permits for $500 to $35,000 in financing for sure sorts of residence enhancements, together with including a storage or making energy-efficiency upgrades. You can not use the mortgage for enhancements like including a deck or swimming pool. The work should start inside 30 days of closing the mortgage and be full inside six months (180 days) of closing.

Maine down fee help

Down fee help is obtainable to MaineHousing debtors who need assistance overlaying these prices.

MaineHousing Benefit

By means of the MaineHousing Benefit down fee and shutting price help program, qualifying homebuyers can obtain as much as $5,000 in money towards a down fee or closing prices. To be eligible, the borrower:

  • Should mix the help with a MaineHousing mortgage program
  • Should full a homebuyer training course
  • Should contribute at the very least 1 % of the mortgage quantity to the acquisition; the funds will be from a present

Different Maine homebuyer help applications

First Technology Program

MaineHousing additionally gives a First Technology mortgage for people who’ve by no means lived in a house that was owned by their organic dad and mom or authorized guardians. These mortgages are additionally accessible to candidates who might have frolicked in foster care as a baby.

This system offers fixed-rate mortgages, in addition to down fee and shutting price funds. Candidates who full training necessities can obtain $10,000 in closing price funds.

Borrower necessities:

  • Should take a monetary literacy and a housing training course
  • Make a minimal borrower contribution of 1 % of the mortgage quantity. Bills of homebuyer training class rely towards the 1 % contribution
  • 640 minimal credit score rating

Property necessities:

  • Single household properties, owner-occupied two- to four-unit condo buildings, condominiums and single- and double-wide cellular properties constructed inside the final 20 years and positioned on leased or owned land.

Different Maine first-time homebuyer loans

Along with MaineHousing applications, authorities mortgages reminiscent of FHA, VA and USDA loans supply phrases and charges that may make it simpler for first-time homebuyers to buy a house.

  • FHA mortgage: An FHA mortgage is insured by the Federal Housing Administration (FHA) and provided by authorized third-party lenders. These loans usually embrace low credit score rating and down fee necessities.
  • VA mortgage: Designed for active-duty service members, veterans and surviving spouses, VA loans, that are assured by the U.S. Division of Veterans Affairs, haven’t any down fee and no personal mortgage insurance coverage (PMI) necessities. The charges on VA loans are additionally very aggressive.
  • USDA mortgage: The USDA residence mortgage program offers low- and moderate-income homebuyers a path to homeownership. This system is designed for homebuyers in designated rural areas who don’t meet typical mortgage necessities.

Get began

For those who’re a first-time homebuyer involved in residing in Maine, begin your homebuying journey by researching the help applications accessible and their eligibility necessities. Understanding your choices could make the acquisition course of simpler and cheaper.

Upon getting a deal with on the mortgage and down fee help applications on the market, an authorized MaineHousing mortgage lender can information you thru the applying course of and assist you discover the choice that most closely fits your state of affairs. Phrases and rates of interest range by lender, so it’s necessary to check mortgage choices rigorously.

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