First-time home buyer programs in Maine: assistance, loans and real costs
Start with the local reality: maine is one of the few states that splits the transfer tax down the middle by law, and its Advantage grant is a true gift rather than a lien — a simpler structure than most states’ forgivable seconds.
| State housing agency | MaineHousing |
|---|---|
| Median home price (approx.) | $400,000 — statewide order of magnitude; metros differ |
| 3.5% / 5% / 20% down | $14,000 / $20,000 / $80,000 on the median |
| Property tax (effective) | about 1.2% — roughly $4,800 a year on the median |
| Mortgage credit certificate | Not consistently offered — ask a lender |
| Transfer tax | Maine’s real estate transfer tax is $2.20 per $500 (0.44%), split equally between buyer and seller by statute ($1.10 per $500 each). |
State programs for first-time buyers in Maine
MaineHousing’s First Home Loan program offers below-market 30-year fixed loans (FHA, VA, USDA, conventional) to first-time buyers (and repeat buyers in targeted areas) with the Advantage down payment and closing cost assistance; a First Generation option adds larger assistance for buyers whose parents never owned.
Down payment assistance: how it is structured
Advantage provides a grant — historically $5,000, with a larger First Generation amount — toward down payment and closing costs for buyers who complete an approved hoMEworks homebuyer education class; the grant requires no repayment but comes with a slightly higher first-mortgage rate.
A second-lien assistance loan has consequences at refinance — it usually must be repaid or subordinated — and a forgivable one repaid early loses its forgiveness. Plan the holding period accordingly. See how down payment assistance programs work.
Is there a first-time buyer tax credit?
MaineHousing does not currently offer a Mortgage Credit Certificate; ask a participating lender whether any tax credit option exists for your purchase.
Income and purchase price limits
First Home Loan income limits vary by county and household size, and purchase price limits apply; a 640 minimum credit score is typical, and the education class is required for the Advantage grant.
What closing costs look like in Maine
Maine’s real estate transfer tax is $2.20 per $500 (0.44%), split equally between buyer and seller by statute ($1.10 per $500 each).
Maine buyer closing costs — the buyer’s half of the transfer tax, title, attorney and lender fees — typically total 2% to 3% of the price. Sellers can pay a share of these costs within program limits — see seller concessions — and our closing costs guide covers the rest.
Example: $400,000 home, three ways to finance it
Worked on Maine’s rough $400,000 median (your county may be far above or below) at an illustrative 6.5%: down payment, loan amount, principal and interest, and the monthly share of property tax at the state’s approximate 1.2% effective rate, or about $4,800 a year. Exclude nothing else from your own budget — insurance, PMI, HOA dues all apply.
| Structure | Down payment | Loan amount | P&I at 6.5% (30 yr) | Property tax / mo (est.) |
|---|---|---|---|---|
| FHA, 3.5% down | $14,000 | $386,000 | $2,440 | $400 |
| Conventional, 5% down | $20,000 | $380,000 | $2,402 | $400 |
| Conventional, 20% down (no PMI) | $80,000 | $320,000 | $2,023 | $400 |
Illustrative rate and approximate state figures — not an offer or a quote. Full payment tables cover $150,000 to $800,000 at 5% to 8%; the affordability guide explains how lenders size the loan.
Frequently asked questions
Does Maine have down payment assistance for first-time buyers?
Advantage provides a grant — historically $5,000, with a larger First Generation amount — toward down payment and closing costs for buyers who complete an approved hoMEworks homebuyer education class; the grant requires no repayment but comes with a slightly higher first-mortgage rate. Program terms and amounts change with funding — confirm the current version with MaineHousing or an approved lender before you count on a figure.
Is there a first-time home buyer tax credit in Maine?
MaineHousing does not currently offer a Mortgage Credit Certificate; ask a participating lender whether any tax credit option exists for your purchase. MCCs reduce federal income tax owed each year for as long as you keep the loan and live in the home; they are applied for through the lender at purchase.
What are typical closing costs when buying a house in Maine?
Maine buyer closing costs — the buyer’s half of the transfer tax, title, attorney and lender fees — typically total 2% to 3% of the price. Maine’s real estate transfer tax is $2.20 per $500 (0.44%), split equally between buyer and seller by statute ($1.10 per $500 each).
Guides for first-time buyers
- PMI for first-time buyers: what it costs and how to get rid of it
- Gift funds for a down payment: the rules, the letter, the paper trail
- Debt-to-income ratio limits by loan type — and how to lower yours
- Credit score needed to buy a house: minimums by loan type, and what it costs to be average
Other Maine pages: hard money rules in Maine · foreclosure in Maine.