Overview
Maine home prices have climbed sharply, with the typical value now around $420,000 statewide and higher along the coast and in Greater Portland. For first-time buyers, the real squeeze is competing against cash offers and second-home buyers from out of state while wages haven't kept pace. MaineHousing, the state's housing finance authority, is built for exactly this moment: it offers below-market 30-year fixed mortgages and cash assistance that help Mainers compete without draining every dollar of savings, turning a daunting market into a reachable goal.
MaineHousing's core product is the First Home Loan, a 30-year fixed mortgage at below-market rates with low or no down payment required. Layered on top is the Advantage option, which provides $5,000 toward your down payment and closing costs. Advantage functions as assistance you pair with the First Home Loan rather than a repayable second you make monthly payments on, but you must complete a hoMEworks-approved homebuyer education class and contribute at least 1% of the loan from your own funds (the class fee can count toward that 1%). Household income and purchase-price limits apply and vary by county and household size.
State Programs
First Home Loan Program
Below-market 30-year fixed first mortgage (low or no down payment)Advantage Down Payment and Closing Cost Assistance
Down payment/closing-cost assistance paired with a First Home LoanFirst Generation Homebuyer Program
Down payment and closing-cost assistanceSalute ME / Salute Home Again
0.50% interest-rate discount on the First Home LoanFederal Programs Available in Maine
These nationwide programs can be combined with Maine state assistance for maximum benefit.
FHA Loan Program
Low down payment mortgageVA Home Loan
Zero down payment mortgageUSDA Rural Development Loan
Zero down payment mortgageTips for First-Time Buyers in Maine
Two programs make Maine's offering stand out. The First Generation Homebuyer benefit provides $10,000 in down payment and closing-cost assistance if you've never lived in a home owned by your biological parents or legal guardians, or if you spent time in foster care, a meaningful boost for buyers without family wealth to lean on. Veterans and active-duty service members can use Salute ME, which discounts the First Home Loan rate by 0.50%; the companion Salute Home Again waives the first-time-buyer requirement entirely. These can stack with Advantage for a lower rate and cash help at once.
On taxes, Maine uses graduated income brackets running 5.80% to 7.15% for 2026, but note a key change: the 2026 Legislature added a 2-percentage-point surcharge on income above roughly $1 million (single) or $1.5 million (joint), pushing the very top marginal rate to 9.15%. That surcharge affects only the highest earners; most buyers stay in the 5.80%-7.15% range. Property taxes average about 0.98% effective, so a $420,000 home runs roughly $4,100 a year. Maine's homestead exemption removes $25,000 of assessed value (adjusted by each town's certified ratio), and a refundable Property Tax Fairness Credit of up to $2,000 helps moderate-income owners.
Beyond the statewide programs, some Maine municipalities and regional agencies offer their own buyer assistance, so ask a local lender what's available in your town. Military buyers near Portsmouth Naval Shipyard in Kittery or Bangor Air National Guard Base can combine Salute ME with a VA loan, and Maine fully exempts military retirement pay from state income tax. To get started, take a hoMEworks-approved homebuyer education class (required for Advantage), meet with a HUD-approved housing counselor to map your budget, and then apply through a MaineHousing-participating lender who can confirm the income and price limits for your county.
Frequently Asked Questions
For educational purposes only -- not financial or tax advice. Program details, eligibility requirements, and benefit amounts are subject to change. Verify all information directly with the administering agency before applying. Last verified: June 15, 2026.