FHA Loans: What You Need to Know in 2022
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2022 FHA Loan Limits in Maine

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Loans backed by the Federal Housing Administration (FHA) can offer assistance to homebuyers who can’t afford large down payments or who may not have excellent credit. However, FHA loans have limits that can vary by county and property type. In 2022, the FHA loan limit for a single-family home in Maine is $420,680 for most counties. For counties around Portland, the loan limit for a single-family home is $463,450.

Maine FHA loan limits by county

County nameOne unitTwo unitsThree unitsFour unitsMedian sales price
ANDROSCOGGIN$420,680$538,650$651,050$809,150$234,000
AROOSTOOK$420,680$538,650$651,050$809,150$130,000
CUMBERLAND$463,450$593,300$717,150$891,250$403,000
FRANKLIN$420,680$538,650$651,050$809,150$194,000
HANCOCK$420,680$538,650$651,050$809,150$250,000
KENNEBEC$420,680$538,650$651,050$809,150$225,000
KNOX$420,680$538,650$651,050$809,150$262,000
LINCOLN$420,680$538,650$651,050$809,150$283,000
OXFORD$420,680$538,650$651,050$809,150$222,000
PENOBSCOT$420,680$538,650$651,050$809,150$204,000
PISCATAQUIS$420,680$538,650$651,050$809,150$139,000
SAGADAHOC$463,450$593,300$717,150$891,250$403,000
SOMERSET$420,680$538,650$651,050$809,150$162,000
WALDO$420,680$538,650$651,050$809,150$240,000
WASHINGTON$420,680$538,650$651,050$809,150$157,000
YORK$463,450$593,300$717,150$891,250$403,000

How are FHA loan limits determined?

The FHA loan limits are determined annually based on the average home sales price from the previous year and the limits set for conventional mortgages, called conforming loan limits. In 2022, the limit increased by 18% to account for last year’s rise in the average national price of home sales. The U.S. Department of Housing and Urban Development (HUD) uses the conforming loan limit to set the loan limits for FHA loans.

FHA loan limits range from 65% to 150% of the conforming loan limit. The lowest limit — called the “floor” — applies to most of the U.S., while the highest limit — called the “ceiling” — applies to higher-cost areas, such as major cities or areas with higher demand.

The loan limits can also vary depending on the type of property. For example, a single-family home will likely have lower lending limits than a multifamily home.

How to qualify for an FHA loan in Maine

FHA loans can be a great option for a homebuyer in Maine who may not have a high credit score and who can’t afford a large down payment. First-time buyers in Maine may also have the option to qualify for Maine’s first-time homebuyer programs, which offer little or no down payment and fixed interest rates.

Whether you’re a first-time or repeat buyer, however, you’ll still need to meet the FHA loan requirements, which include:

A minimum 3.5% down payment. If your credit score is 580 or higher, you may qualify for a down payment of 3.5%.

A minimum 500 credit score. If your credit score is between 500 to 579, you still may qualify for an FHA loan, but you’ll need to put down at least a 10% down payment.

A debt-to-income (DTI) ratio of 43% or less. While guidelines can vary between lenders, FHA loans typically require that your DTI ratio be no higher than 43% of your gross income.

An FHA home appraisal. If you’re applying for an FHA home loan, you will need to have an approved FHA appraisal for the property.

Mortgage insurance. You’re required to pay two kinds of FHA mortgage insurance: upfront mortgage insurance — 1.75% of the loan — and annual mortgage insurance, which can range from 0.45% to 1.05%.

Primary residence. The home must be your primary residence for a year or more.

Buying a multifamily property with an FHA loan

FHA loans can also help a homebuyer purchase a multifamily home. As long as you live in one of the units for at least a year, you can use an FHA loan to purchase a multifamily home. Additionally, as long as your credit score is 580 or higher, you can take advantage of the same 3.5% down payment.

FHA lenders in Maine

Here are five highly rated mortgage lenders licensed in Main​​e.

Lender name LT rating Minimum FHA credit score 
Flagstar Bank8Not published
PennyMac Loan Services9620
Guild Mortgage9540
CashCall8.5560
AmeriSave Mortgage Corporation8600

 

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