MaineHousing boosts payment assistance for first-time homebuyers
Staring Monday, the Maine State Housing Authority has increased its Advantage down payment assistance grant available to first-time homebuyers from $3,500 to $5,000, the Augusta-based agency said.
The increase will provide additional help for hopeful buyers trying to overcome one of the biggest hurdles to securing financing for a mortgage.
While MaineHousing's base interest rate is also going up slightly, from 2.85% to 3.50%, the agency noted that the rate remains well below the current private market rate average of nearly 5%.
“MaineHousing remains committed to keeping our interest rates as low as possible to help as many Mainers as we can find the route to home ownership,” said MaineHousing Director Daniel Brennan. “We are hopeful our low rates combined with increasing down payment assistance will be the key to that first home for many Mainers.”
So far in 2022, MaineHousing has issued 135 First Home Advantage mortgages, after issuing 725 in 2021, spokesman Scott Thistle told Mainebiz.
MaineHousing’s low interest rates can save the average homebuyer thousands of dollars over the full term of their loan, he added. MaineHousing's First Home Loan mortgage options include a low interest rate and little or no down payment
However, rates are subject to daily changes based on market conditions.
Eligibility for the program include those who have not held an ownership interest in their principal home within the past three years, while requirements are waived for veterans, retired military members or those on qualified activie duties.
Although household income limits apply, most Maine households are income-eligible for the program, MaineHousing notes on its website. Applicants must also have an acceptable credit history with a minimum credit score of 640.
In addition, though home purchase price limits apply and vary by location and property time, most Maine homes are price-eligible, according to MaineHousing.
The assistance boost comes as home prices in Maine continue to rise. In February, the median sales price jumped 21.5% over a year earlier to $297,500 as low inventory led to a 17.3% drop in sales over the same period, according to data released by Maine Listings last month.
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