Need Help Financing? Reach Out to our lending partnerS!

Federal Housing Authority (FHA) Loans  

• Down Payment: The minimum down payment is 3.5% if your credit score is 580 or above. For individuals who have a credit score of 500 and 579, you are required to pay a 10% down payment. Individuals with a credit score of below 500 do not qualify for this program.
   
• Mortgage Insurance Premiums (MPI): FHA Loans require an upfront mortgage insurance premium of 1.75% of the loan amount, and an annual MPI of 0.55% of the loan amount divided into 12 monthly payments  
   
• Debt-to-Income Ratio (DTI): The preferred DTI ratio for FHA ratios is 43% but can be higher depending on factors such as a higher credit score or larger down payment. 

Maine State Housing First Time Home Buyer:  

• Eligibility: To be eligible for this program the borrower must not have held ownership in a principal residence within the last three years. Additionally, potential borrowers should have a minimum credit score of 640 and plan to allocate no more than 30-33% of their monthly income towards the mortgage payment. 

• Down Payment and Interest Rates: Through this program Maine Housing offers both 0 point and 2-point rate options. Both the 0- and 2-point options provide borrowers the opportunity for very low or no down payment options (subject to vary based on borrower). The 0-point option fixed rate of 5.950% with an APR of 6.495%; whereas the 2-point system has a fixed rate of 5.450% with an annual percentage rate of 6.196%. These rates are subject to change so for the most up to date information see Maine Housings current rates here.
   

Maine State Housing Salute ME  

• Eligibility: The program is available to active-duty members, those who have been honorably discharged, and National Guard members who meet certain active-duty requirements. The Salute Home Again program is available even if you are not a first-time homebuyer, waiving the usual first-time homebuyer requirement. The Salute ME loan can be combined with various insurers including FHA, RD (Rural Development), VA, and others, offering flexibility depending on your specific needs. 

• Interest Rate Discount: Qualified military personnel receive a 0.50% discount on the already low 30-year fixed interest rate offered by Maine Housing for the First Home Loan program.
   
• Down Payment and Closing Cost Assistance: The programs provide a $5,000 Advantage towards down payment and closing costs. To qualify for this assistance, borrowers are required to complete a homebuyer education class provided by hoMEworks. 

Rural Housing Development (RHD): 

• Eligibility: To qualify for a USDA Rural Housing Development Loan, applicants must meet specific income criteria, where their income does not exceed 115% of the median household income for the area. It is essential that applicants do not currently own housing that meets their needs and must intend to make the new property their primary residence. Eligibility is extended to U.S. citizens, non-citizen nationals, or qualified aliens. 

• Down Payment: The USDA Rural Housing Loans are favorable for many as they typically require no down payment for eligible applicants. Under the guaranteed section of the loan program, eligible individuals can receive 100% financing, making homeownership more accessible without the financial burden of a down payment. 

• Interest Rates: Interest rates for the USDA Rural Housing Development Loans are designed to be affordable to support homeownership in rural areas. Under the direct section of the loan program, interest rates can be as low as 1%, with additional payment assistance to lower monthly payments based on the applicant's adjusted family income. Under the guaranteed section of the loan program the interest rates are variable and determined by the lender but include a 90% loan note guarantee from the USDA, which mitigates the lender's risk and facilitates lower interest rates for the borrower. 

*For more details visit the Maine USDA Rural Devlopment Website here*

Veteran Affairs Loan: 

• Eligibility: Veterans, active service members, and certain members of the National Guard and Reserves are eligible for a VA Home Loan. Eligibility is also extended to surviving spouses of service members who died on active duty or as a result of a service-related condition. Applicants must have a valid Certificate of Eligibility (COE), and the home must be intended for their personal occupancy. The eligibility often extends even if you've already used a VA loan in the past, and it can be restored under certain conditions. 

• Down Payment: One of the most significant benefits of a VA Home Loan is the possibility of zero down payment. This feature is available to most borrowers and eliminates the barrier of needing a substantial amount of upfront cash that is often required in other types of home loans. 

• Interest Rates: VA Home Loans offer competitively low interest rates, which are often negotiable and may vary by lender. While private mortgage insurance (PMI) is not required, there is a VA funding fee, which varies depending on the nature of the loan and the borrower's circumstances. This fee helps fund the VA home loan program and can often be financed into the loan amount. First-time users of the benefit generally pay a lower funding fee compared to those who have used the benefit before. However, certain veterans, such as those receiving VA compensation for service-connected disabilities, are exempt from the funding fee. 

*Information subject to change, for most up to date rates visit Androscoggin Bank's Lending Page here and Bath Savings Lending Page here*