Maine Down Payment Assistance

Known for its lobster and beautiful coasts, Maine can be a wonderful place to live. It's also one of the states listed for lowest average mortgage debt! Those looking for other ways to help purchase real estate may also be able to utilize grants or down payment assistance loans.

If you're thinking about purchasing a home in Maine, you may have options to help with the down payment or closing costs. Read below to learn more about any program and see if it can help with your home purchase!

Advantage Down Payment and Closing Cost Assistance

For those utilizing a MaineHousing First Home, Salute ME or Mobile Home Self-Insured Home Mortgage, Advantage Down Payment and Closing Cost Assistance offers $3,500 to be used for the down payment, closing costs, or other eligible items associated with a home purchase.

The applicant must be able to put forth at least 1% of the first mortgage amount towards the home purchase. However, this amount can be from gift funds.

Homebuyer education must be finished before closing can occur. Income and purchase limits apply.

Pre-1976 Mobile Home Replacement Initiative

For those living in a mobile home built before 1976, the Pre-1976 Mobile Home Replacement Initiative offers an opportunity to help replace the mobile home with an ENERGY STAR ® certified manufactured home.

Eligible applicants can receive a first mortgage loan as well as a $30,000 grant from MaineHousing. This grant does not need to be repaid as long as the applicants live in their new manufactured home for a minimum of 10 years.

These funds can be used to dismantle and remove the pre-1976 mobile home as well as to purchase and install the new ENERGY STAR ® manufactured home. The new manufactured home must be installed on the same site as the old pre-1976 mobile home. The property can be either owned land, privately leased land, or a park.

Only ENERGY STAR ® manufactured homes can be purchased using this initiative, and it must have permanent connections to water, sewer, and other utilities when installed. Furthermore, is must have a permanent foundation. The manufactured home must be purchased through a licensed dealer in Maine.

Annual household income limits apply, which vary depending on location and household size. The purchase price for the manufactured home must be $200,000 or less, as of 2022.

Purchase Plus Improvement Program

This program, offered by MaineHousing, helps to finance eligible repairs associated with a home purchase. This option must be used as part of the MaineHousing First Home Program. Income, purchase price, and LTV limits will apply. As much as $375 will be charged for utilizing this option.

Applicants can receive between $500 and $1,000 in funds to put towards repairs and rehabilitation if the work will be completed by the applicant. If the work will be completed by a contractor, the amount of funds will be between $500 and $35,000. The amount given at closing depends on who will be completing the work. If the borrower will be, then nothing is given at closing and up to $1,000 will be reimbursed after an inspection to confirm that the repairs have been completed. Note that this amount only counts towards materials, and that the labor of the borrower will not be reimbursed. If a contractor will be completing the work, as much as 33.3% of the contractor’s price will be offered at closing.

Thirty days after closing, the repairs and rehabilitation must have been started. The applicants must then be utilizing the property as their primary residence within 60 days of closing. Finally, all repairs and rehab work must be done after 180 days. Once all repairs have been finished, an additional inspection will be required.

This program can be used for additions, accessibility improvements, garage improvements, sewer systems, energy improvements, and Energy Star appliances.

It cannot be used for recreational facilities such as decks, swimming pools, or tennis courts; public improvements; home completions; major rehabilitation or remodeling; or other projects that do not improve either the house’s livability or energy efficiency.

Auburn HOMEbuyer Program

Offered through the Community Development Department, the HOMEbuyer Program gives a $5,000 grant to eligible low-to-moderate income homebuyers in Auburn or Lewiston. This amount can be put towards the down payment or closing.

This is a grant with a five-to-one match, which means that the applicant must have $1,000 to put towards the home purchase.

Applicants cannot already own residential property. Furthermore, the applicant’s cash assets cannot be more than $15,000.

The property to be purchased using this grant must be inspected.

Income limits apply.

Applicants may also be eligible for forgivable loans for up to $10,000.

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