Down Payment Path

Down Payment Assistance Programs in Maine

Maine provides a range of down payment assistance programs designed to help homebuyers manage upfront costs. These programs are accessible to both first-time and repeat buyers, ensuring more residents can achieve their dream of homeownership in the Pine Tree State.

MaineHousing Advantage Program

The MaineHousing Advantage Program offers financial support to cover down payments and closing costs.

  • Provides up to $5,000 in assistance as a deferred, interest-free second mortgage.
  • Repayment is deferred until the home is sold, refinanced, or the first mortgage is paid off.
  • Available for FHA, VA, USDA, and conventional loans.
  • Income and purchase price limits apply but cover a broad range of buyers.

First Home Loan Program

The First Home Loan Program, offered by MaineHousing, provides affordable mortgage options that can be paired with down payment assistance.

  • Available to both first-time and repeat buyers purchasing in targeted areas.
  • Offers low fixed interest rates and reduced mortgage insurance premiums.
  • Pairs with the Advantage Program for additional down payment assistance.

USDA Rural Development Loans

For buyers in rural areas of Maine, the USDA Rural Development Loan offers affordable financing with no down payment requirement.

  • Open to low- and moderate-income buyers in USDA-designated rural areas.
  • Flexible credit requirements and competitive interest rates.
  • Can be combined with state programs to cover closing costs.

Mortgage Credit Certificate (MCC)

The Mortgage Credit Certificate program helps reduce the cost of homeownership by offering tax benefits.

  • Allows buyers to claim a federal tax credit for a portion of their annual mortgage interest.
  • Can be combined with MaineHousing loans and down payment assistance.
  • Income and purchase price limits apply.

Local Assistance Programs

Many towns and cities in Maine offer additional assistance programs tailored to local homebuyers.

  • Programs in areas like Portland, Bangor, and Lewiston provide grants or low-interest loans to help with down payments and closing costs.
  • Some initiatives offer benefits for specific professions, such as educators or healthcare workers, or focus on revitalization neighborhoods.
  • Eligibility requirements and assistance amounts vary by location.

Maine’s down payment assistance programs aim to reduce financial barriers to homeownership, making it more affordable for a wide range of buyers. Whether you’re purchasing your first home or upgrading, these programs provide valuable support to help you achieve your dream of owning a home in the Pine Tree State.