Maine Mortgage Rates
December 3, 2016 06:38 AM Eastern
Look here for mortgages in the Pine Tree state. Maine’s mortgage lenders are regulated by the Bureau of Consumer Credit Protection.
Maine Mortgage Rates
Maine mortgage rates may vary from those in other states. Different economic conditions and lending laws, as well as competition among lenders, can affect the home loan rates offered in every state.
Buying a Home in Maine
Maine home prices declined by just under 12% from an all-time high in the first quarter of 2008, and as of late 2012 they were not showing signs of recovery. Forecasters expect the Maine housing market to underperform the rest of the country through 2013.
The median price of a home in the Portland-South Portland-Biddeford metropolitan area is $217,000. With a median income of $76,400, home buyers in the Portland area can afford 84.5% of the houses for sale.
Closing costs are slightly higher than average. Maine’s closing costs of $2,408 rank it 22nd out of 50 states and the District of Columbia.
There are a number of programs in place to assist homebuyers with down payments, closing costs and other means of financing a home:
- MaineHousing – homebuyer programs, including down payment and closing cost assistance
- Habitat for Humanity – volunteers build and rehabilitate houses for families in need
- U.S. Department of Agriculture Rural Housing – homebuyer programs in rural communities
In addition to the programs listed, there are a number of community programs that provide assistance in individual towns.
One of the biggest benefits of an FHA mortgage is that the down payment is as little as 3.5%. However, FHA mortgages do not enjoy as much popularity in Maine as they do in other parts of the country. The maximum amount of an FHA mortgage in the Portland-South Portland-Biddeford area is limited to $337,500. In Lincoln County that limit is $318,750. Knox County’s cap is $279,450 and in Hancock County it’s $272,500. All other counties are subject to an FHA loan limit of $271,050.
For those who are eligible for a VA loan, it can cover 100% of the home’s cost. The VA does not cap mortgage amounts, although most lenders limit loans to four times the maximum VA guarantee, which varies by area. In Maine, that amount is $417,000.