To help first-time homebuyers in Maine afford their first abode, MaineHousing has launched a pilot program to provide $10,000 grants to help with down payments and a below-market mortgage interest rate.
“The First Gen loan provides a pathway to homeownership for first-time homebuyers, who are also the first generation in their families to be purchasing a home,” said MaineHousing Director Daniel Brennan.
Individuals who lived in foster care as children are also eligible for the program.
The First Generation homebuyer program provides a $10,000 grant to applicants who complete courses in both financial literacy and homebuyer education to help prepare them to be successful long-term homeowners. Information on the total funding amount was not immediately available.
“MaineHousing is pleased to offer this opportunity to first-generation homebuyers who will also receive the added benefit of a below-market mortgage interest rate to further enhance their home’s affordability,” Brennan said.
The initial goal is to provide 100 grants a year, and MaineHousing has the resources to keep the program going if the demand is there, according to spokesman Scott Thistle.
The program will also provide a fixed interest rate mortgage that will be 1% below MaineHousing’s regular First Home Loan program base rate.
Borrowers who complete the two courses from MaineHousing-approved providers will earn $10,000 in grant funds credited at closing.
Among other requirements, borrowers must be true first-time homebuyers that have had no previous ownership interest in a principal residence in any location at any time; at least one borrower must either never have lived in a home owned by his or her biological parents or legal guardians during the borrower’s lifetime; or have been in foster care at some point in childhood.
More information
Find out more about the program, including eligibility requirements and mortgage options here.
