Why This Program Matters Right Now
Homebuyers in Maine often face the hardest pressure at the beginning of the purchase: down payment funds, closing costs, and the cash needed to reach the closing table. The MaineHousing First Home Loan – Advantage is worth highlighting because it provides a fixed $5,000 benefit that does not have to be repaid. For buyers using an eligible MaineHousing mortgage, this can reduce one of the most immediate barriers to homeownership.
What This Program Provides
The MaineHousing First Home Loan – Advantage provides up to $5,000 in assistance.
The program is provided by MaineHousing, a state government housing agency located in Augusta, Maine.
Funds may be used for closing costs. The assistance must be used with a MaineHousing First Home, Salute ME, or Mobile Home Self-Insured mortgage.
Program Structure
The program is structured as a second mortgage.
Repayment is not required.
No interest rate is applied to the assistance.
The assistance amount is fixed at $5,000.
The program does not allow cash back at closing. Any excess assistance must be applied toward the loan amount, and any principal reduction must be less than $500.
Key Numbers
- Maximum assistance: $5,000
- Minimum assistance: Not publicly disclosed
- Borrower contribution: 1% of the loan amount
- Gift funds allowed for borrower contribution: Yes
- Repayment required: No
- Interest rate on assistance: N/A
- Minimum credit score: 640
- Income limits: Yes
- Maximum household income: Contact lender
- Minimum household income: Contact lender
- Purchase price limits: State-specific maximum purchase prices apply
- Provider phone number: 207-626-4600
- Program point of contact phone number: +1 207-458-4436
Eligibility Requirements
- The home must be located in Maine.
- The program is available statewide.
- Income limits apply.
- Applicants must have a minimum credit score of 640.
- Applicants must complete a hoMEworks-approved homebuyer education course prior to closing.
- A cash contribution of 1% of the loan amount is required.
- The 1% cash contribution may be provided as a gift.
- The program must be used with a MaineHousing First Home, Salute ME, or Mobile Home Self-Insured mortgage.
- If the buyer has not held an ownership interest in a principal home within the past three years, they qualify as a first-time homebuyer.
- Citizenship status requirements are not publicly disclosed.
- Residency requirements are not publicly disclosed.
- Profession-based eligibility restrictions are not publicly disclosed.
Property Requirements
- Eligible properties must be located in Maine.
- Eligible counties: All counties.
- Eligible property types include new and existing single-family homes.
- Owner-occupied 2- to 4-unit apartment buildings are eligible.
- Condominiums are eligible.
- Permanently attached mobile homes built within the last 20 years are eligible.
- Mobile homes may be located on owned or leased land.
- State-specific maximum purchase prices apply.
- Approved first mortgage options include FHA, VA, RD, Uninsured, and MaineHousing-approved Private Mortgage Insurance when used through an eligible MaineHousing mortgage.
How the Process Works
- Review whether the home and mortgage type fit MaineHousing program requirements.
- Contact a MaineHousing-approved lender.
- Confirm income limits, purchase price limits, and credit score eligibility with the lender.
- Complete a hoMEworks-approved homebuyer education course before closing.
- Apply through the MaineHousing-approved lender using an eligible MaineHousing mortgage.
- Use the Advantage assistance toward eligible closing costs at closing.
Affordability Impact
This program reduces the amount of cash a buyer may need at closing by providing $5,000 in closing cost assistance.
This program does not reduce the monthly payment. It reduces upfront cash required.
Because repayment is not required, the assistance can help eligible buyers preserve savings while still meeting the program’s required 1% borrower contribution.
Where This Fits in the Market
The MaineHousing First Home Loan – Advantage fits into the upfront cost assistance category. It is designed for buyers who can qualify for an eligible MaineHousing mortgage but need help reducing closing costs.
Compared with assistance programs that require repayment, this structure is more direct for buyers because the $5,000 does not have to be paid back. It also differs from percentage-based assistance because the benefit amount is fixed rather than calculated as a share of the purchase price or loan amount.
For example, an eligible buyer using a MaineHousing First Home mortgage could apply the $5,000 benefit toward closing costs, while still meeting the required 1% borrower contribution.
Find the Right Programs for You
If you are a homebuyer visit the Wallet Wizard so you can find the right programs and a team that will get you the best deal possible.
If you are an agent or loan officer visit our Professional Dashboard, which has instant access to 1400+ homebuyer programs.
