What are Affordable Down Payment Assistance Programs in Maine and NH?

If the thought of affording a down payment feels like a daunting barrier between you and owning a home, you’re not alone. It’s a factor many potential first-time homebuyers list as the biggest roadblock they worried about in advance.

But there is good news! Down payment assistance programs in Maine and New Hampshire exist specifically to help first-time and first-generation buyers make their dreams come true by bridging the gap between what you have and what you need. They can help you qualify for a home sooner, lower your mortgage payment, and greatly reduce or eliminate additional costs.

The programs offer a variety of helpful services, including financial assistance for not only down payments, but also closing costs and the offering of special rates and terms. In this article, you will learn about some of the most effective programs today and how you can take advantage of the resources to make your homebuying experience more affordable!

Equity Builder Program (EBP)

The EBP is a grant program for households earning no more than 80% of the area median income in Maine and New Hampshire as determined and published annually by the U.S. Department of Housing and Urban Development (HUD).

Housing Our Workforce (HOW)

The HOW program is a grant program for Maine and New Hampshire households earning more than 80% and less than or equal to 120% of the area median income as published annually by HUD. While the grant amount can vary, historically, it has offered up to $32,099 for a down payment assistance per household. This program can be paired with other grants and/or down payment assistance programs.

Advantage 

Advantage is a MaineHousing program that is typically used for down payment and closing costs as well as prepaid escrow expenses. Each household is allowed up to $5,000 and homebuyers are obligated to complete a first-time homebuyer education course like hoMEworks (more information below). Additionally, there is a borrower contribution requirement of 1% of the loan amount. 

First Generation Program

Another MaineHousing program, First Generation is 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. It offers a low fixed interest rate mortgage, down payment, and closing cost assistance.

Lift Up Homeownership Program

The Lift Up Homeownership Program offers down payment assistance for first-generation homebuyers in Maine and New Hampshire. While the amount can vary, historically the grant has been up to $50,000.

SaluteME & Salute Home Again

The SaluteME & Salute Home Again program is offered through MaineHousing to qualified active duty members, veterans, and retired military personnel. The program includes a .50% discount and is available with little or no down payment. There are income limitations and it can work with other grants, so be sure to work with a trusted mortgage loan officer for all of the details.

Rural Development

Some banks offer Rural Development programs attached to their in-house (portfolio) loans. These programs are designed to help homebuyers (not first-time) with low and very low income that qualify in eligible rural areas of Maine. These programs offer loans with as little as 0% down. 

New Hampshire First-Generation Homebuyer Program

First-generation homebuyers in New Hampshire can receive $10,000 in down payment assistance if they are purchasing a single-family primary residence (1-4 units) and complete homebuyer education through a New Hampshire education program (AHEAD, HOMEteam, or the Housing Partnership).

hoMEworks

hoMEworks is a nonprofit dedicated to consumer homebuyer education that has made the process smoother for thousands of people over the last 25 years. The eight-hour class features segments on understanding credit, managing finances, associated costs with purchase and ownership, finding the right real estate agent and lender, managing finances after the purchase and more. The classes are open to anyone interested in learning, not just first-time buyers, and those who complete the class also receive a certificate that satisfies the education requirement associated with most mortgage programs.

Putting It All Together

The journey to homeownership is full of considerations and choices but with NSB, you’ll never have to go down the path alone. The first-time homebuyer experience, accessing down payment assistance, and eventually realizing the benefits of mortgage refinancing, are all experiences that NSB can help you navigate. Not only will you get competitive rates, you’ll get a supportive, dedicated, experienced, and local mortgage professional who will help you every step of the way. Plus, NSB’s new and enhanced technology makes going through the process easy and efficient! So when you’re ready, let us help you. Contact a local mortgage loan officer in Maine and New Hampshire. NSB’s free Mortgage Resources Hub also features a number of helpful articles that can assist you in your process.

This article was written by NSB mortgage lending experts, not generated from artificial intelligence.