MaineHousing’s First Generation Pilot Program (First Gen) is a mortgage program for borrowers who have never lived in a home owned by their biological parents or legal guardians. The program is also available to borrowers who have been in foster care at some point in their childhood. This program makes it easier and more affordable to buy a home of your own by providing a low fixed interest rate mortgage, down payment and closing costs assistance, and education classes that offer valuable information to help you become a successful long-term homeowner.
You must apply for a MaineHousing loan at one of our approved lenders.
MaineHousing mortgage options include:
Education Classes - First Gen Applicants must take a MaineHousing approved Financial Literacy class and a hoMEworks or MaineHousing approved Homebuyer Education Class prior to closing.
Down payment and closing cost assistance - Once a First Generation borrower has completed a Financial Literacy class and hoMEworks or MaineHousing approved Homebuyer education class, the First Gen option provides $10,000 toward the cash you need for closing. First Gen Applicants must make a minimum borrower contribution of 1% of the loan amount. The cost of the homebuyer education class counts toward the 1% contribution.
Low fixed interest rates - MaineHousing’s low-interest rates can save the average homebuyer thousands of dollars over the full term of the loan. For the First Gen program, MaineHousing offers a zero-point mortgage option with a 1.00% discount on our already low First Home Loan interest rate. Current Rate Sheet
Are you a true first-time homebuyer? If you have not held an ownership interest in your principal home anytime during your lifetime, you qualify as a true first-time homebuyer for First Gen. At least one borrower must have either never lived in a home owned by their biological parents or legal guardians during the borrower's lifetime or at least one borrower is an individual who was in foster care at some point during their childhood.
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 in Maine you plan to buy your home.
You must have an acceptable credit history with a minimum credit score of 640.
Can you afford a home? Generally, you should plan to use no more than 30 - 33 percent (30 -33 %) of your income for a monthly mortgage payment. A MaineHousing-approved First Home Lender can help you determine how much home you can afford and identify any credit issues you may need to work on before buying.
While home purchase price limits apply and vary by location and property type, most Maine homes are price eligible.
MaineHousing offers First Generation Program mortgages through a statewide network of banks, credit unions and mortgage companies. A MaineHousing First Home Lender will help determine what you can afford to pay, what mortgage options are right for you, and help guide you from loan application through closing.
Apply for the MaineHousing First Generation Program at one of our more than 40 First Home Lenders.