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Homebuyer Program Details
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Program Summary

MaineHousing’s Operation New Home provides low fixed rate mortgages to help veterans and active duty military buy homes. You may be eligible – even if you are not a first-time homebuyer. Mortgage options are available with no point, low points, and little or no down payment.

MaineHousing's Gift of Green offers financial incentives of $3,000 to eligible homebuyers who choose a MaineHousing mortgage.


MaineHousing interest rates are usually lower than market rates for similar products. Lower interest rates mean lower monthly payments. This can save thousands of dollars – and often tens of thousands of dollars – over the full term of a loan. To see how much a MaineHousing mortgage can save you, compare the effect of a MaineHousing interest rate and a market rate using an online mortgage calculator.

All Operation New Home mortgages also come with payment protection for unemployment. If you are a MaineHousing borrower in good standing and become unemployed, Maine HOPE – HomeOwnership Protection for unEmployment – may be able to help by making four MaineHousing mortgage payments, including taxes and homeowners insurance. The amount paid becomes a junior mortgage lien, with no interest, that is repaid when you pay off your MaineHousing mortgage or stop using the home as your primary residence. It’s a little added protection for you and your home.

MaineHousing mortgage options include:

 

  • No point and low point options - Discount points may be paid at closing to reduce your interest rate. MaineHousing offers both a zero point and a two point mortgage option. Whether payment of points makes financial sense for you may depend on how long you think you’ll stay in your home without refinancing your mortgage.
  • Down payment and closing cost assistance - A MaineHousing loan with mortgage insurance can help you buy a home with little or no down payment. MaineHousing's Gift of Green includes a grant to help you with down payment and closing costs.
  • Home improvements included in your loan amount - The Purchase Plus Improvement option finances the purchase and repair of a home with one loan. If you are eligible, you may include between $500 and $35,000 for home improvements in your mortgage, as long as the cost of the home plus improvements does not exceed program purchase price limits.
  • Financing for mobile homes - MaineHousing offers mortgages for single- and double-wide mobile homes located on owned or leased land. The Mobile Home Self-Insured option provides financing for mobile home property types that are ineligible for private or federal mortgage insurance. With this program option, there is a purchase price limit of $150,000 statewide, interest rates will be a little higher, and the term of the loan is based on the age of the mobile home.
MaineHousing has been a trusted source for mortgage financing for over 30 years.



Am I Eligible?
You may be eligible if you:
  • Have served on active duty for 180 days or within a war zone. (National Guard members who meet this qualification are eligible.)
  • Remain on active duty or have been honorably discharged from military service.
  • Have never received a mortgage financed in any state with mortgage revenue bonds.
Although household income limits apply, most Maine households are income-eligible for the program. Limits vary depending on how many people live in your household and where you plan to buy your home. To verify your income eligibility for an Operation New Home mortgage, use the prequalification tool at www.mainehousing.org/prequalification.

Most types of homes qualify for an Operation New Home mortgage, including:
  • New and existing single family homes.
  • Owner-occupied, 2- to 4-unit apartment buildings.
  • Condominiums.
  • Permanently attached mobile homes built within the last 20 years. (Mobile home must be located on owned or leased land.)
An Operation New Home mortgage cannot be used to refinance a home you already own.

Home purchase price limits apply, but vary by location and are seldom a limiting factor.

How Do I Apply?
Apply for a MaineHousing Operation New Home loan at one of our more than 30 Participating Lenders.

For more information see related information at the top right of the page, download our Operation New Home brochure, or contact:

Homeownership Department
Email Us
(207) 626-4663


 Program Resources
Gift of Green
Operation New Home Brochure
Current Interest Rates
Income Eligibility Guidelines
Rate Sheet
Homebuyer Purchase Price Limits
Income and Purchase Price Prequalification Tool
hoMEworks Homebuyer Education Classes
Participating Lenders
Recapture Tax
Maine HOPE (Home Ownership Protection for unEmployment) Flyer


Additional Resources
Mortgage Payment Calculator
What to do if you can't made your mortgage payment
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MaineHousing ▪ 353 Water Street ▪ Augusta, Maine 04330 ▪ (800) 452-4668 ▪ (207) 626-4600 ▪ TTY (800) 452-4603 ▪ Fax (207) 626-4678

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