Maine Mortgage Overview
With just over 40 people per square mile,
there's something peaceful about living in the coastal region of Maine. Known
as the Pine Tree State because it has so many pine trees, Maine is a gorgeous
state for families to enjoy including breath-taking islands.
If Maine living sounds perfect for you,
here are your loan options:
Maine FHA loans
Maine FHA loans make it easy
for anyone to become a homeowner. You need just a 580 credit score and a 3.5
percent down payment. You can even use gift funds for the entire down payment.
With a steady income and a decent debt ratio, you're well on your way to owning
your own home.
Maine VA loans
Veterans can live in Maine with
no down payment and attractive loan interest rates. The VA loan requires just a
620 credit score and 'decent' debt ratio. Veterans don't pay mortgage insurance
but must live in the home as their primary residence.
Maine USDA loans
Maine has plenty of rural
areas for low to moderate-income families to secure 100 percent financing. With
just a 640 credit score, you can get a loan with low mortgage insurance rates
and low closing costs.
Maine conventional loans
If you have great
credit (at least 660) and low debt ratios, try the Maine conventional loan. You
need only 3 percent down if you're a first-time homebuyer (5 percent if not),
but you'll pay PMI until you build up 20 percent equity in the home.
First-Time Homebuyer Programs in Maine
First Home Loan
The MaineHousing
Conventional Loan is a low-interest fixed rate loan for low income
borrowers. This must be your first home (or you haven't owned a home in 3
years). Borrowers need a minimum credit score of 640.
Advantage Loan Program
This is a down
payment and closing cost assistance program. You can get up to $3,500 in
closing cost or down payment assistance, and you must contribute 1 percent of
the sales price too. All borrowers must undergo homebuyer education.
Purchase Plus Improvement Loan
If you're
buying a fixer-upper home, the Purchase
Plus Improvement Loan provides funds to buy and renovate the home. You can
borrow $5,000 - $35,000 for home improvements, but there is a 6 percent of
construction cost fee for the program.
Mobile Home Self-Insured Program
If you're
buying a mobile home, the Mobile
Home Self-Insured Program provides loans up to $175,000. In place of
mortgage insurance, you'll pay a slightly higher interest rate. Mobile home
buyers must make a 5 percent down payment, but 2 percent may be gift funds or
down payment assistance. You need a credit score of at least 640 and a max debt
ratio of 43 percent.
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