If you are a first time home buyer in Maine looking for a first time home buyer loan program then the Maine State Housing Authority might just have the right homeownership program for you. Homebuyers must apply and qualify with a participating lender. Loan programs are low fixed rate mortgages with no points and extended payment terms available. There are options for little or no money down as well as closing cost assistance available for those qualifying homebuyers who need the extra help. Qualified applicants can get down payment assistance too.
Maine’s First Home Program – Helping First Time Home Buyers Become Homeowners
With little or no downpayment, qualified residents of Maine can purchase a home in Maine using Maine Housing’s First Home Program. This program provides a low fixed rate mortgage with options to pay no points and get an extended payment term of up to 40 years. Mortgage rates for the First Home Program are typically below market for comparable loan programs not using the First Home Program.
Homebuyers using this program to purchase a home are automatically enrolled into an unemployment protection insurance plan. This program is called Maine HOPE which stands for Maine HomeOwnership Protection for unemployment. If you have a First Home Program and you become involuntarily unemployed and are in good standing with your mortgage you may be protected for up to 4 months of having your mortgage payment paid by the unemployment insurance plan. Check with your mortgage loan officer for more information about this program.
Veterans and Active Duty Military personnel are eligible to use this program. VA loans are great loans as they do not have monthly mortgage insurance premiums and provide up to 100% financing. With this being the case the MSHA’s First Home Mortgage Program is a great way for a Vet or Active Duty member to purchase a home. Not only can they get 100% financing with no mortgage insurance, they can also get below market interest rates. The VA loan program with MaineHousing is called Operation New Home.
Can I Rehab A Property I Want To Purchase With First Home?
Yes, as a matter of fact you can use the Purchase Plus Improvement options to finance not only the purchase of a new home, but also to finance the cost to repair the home. This is all done with one loan program. Qualified homebuyers can get anywhere between $500 to $15,000 to pay for home improvements.
Can I Purchase a Mobile or Manufactured Home With Maine Housing?
Yes, MaineHousing offers mortgage financing for single and double wide mobile homes no matter whether they located on rented or owned land. Some mobile homes are not eligible for Private Mortgage Insurance coverage. These properties are covered by the Mobile Home Self-Insured option of the First Home Program. Homebuyers using this program will be capped at borrowing a maximum of $150,000.
What Kind Of Down Payment And Closing Cost Assistance Is There With Maine Housing?
Downpayment and closing cost assistance are provided by a program called The Maine American Dream Initiative. This program helps low-income homebuyers with their down payment, closing costs, repairs, or other financing needs to fill the gap between what they can afford and the purchase prices of the the home they want to buy. Homebuyers eligible for this program can get up to $10,000 in a five year deferred payment, forgivable mortgage. Maine American Dream Initiative Loans are interest free have no monthly payments required unless the first mortgage payments are not being made as agreed by the homeowner.
To be eligible for this down payment assistance program homebuyers must complete a 10 hour home buyers education class, be approved for a mortgage, meet income eligibility requirements, and purchase a home in Maine (mobile homes in parks are not eligible for this program). You may participate in this program even if you are not getting a First Home Mortgage as your primary mortgage. To apply for this program homebuyers will need to contact their local Community Action Program Agency (CAP).
The Indian Housing Mortgage Insurance Program From MaineHousing
This last program provides a mortgage insurance program for property located on tribal lands where restrictions on ownership prevent lenders from holding a mortgage on a property. The program provides lender loan guarantees for up to 30 years and enables Native Americans who are building or buying a home on tribal lands to qualify for a mortgage loan. Participating lenders are your starting point for getting this program.
To get additional information about down payment assistance programs, or to find out more about mortgage programs please complete the information below:
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