Buying your first home in Brunswick can feel exciting and overwhelming at the same time. You might be wondering how to cover the down payment, what you can afford, and where to start. Good news: MaineHousing’s First Home options and related assistance are designed to help first-time buyers like you get into a home with clear rules and support. In this guide, you’ll learn how these programs work in Cumberland County, what to expect with income and price limits, and the practical steps to take next. Let’s dive in.
MaineHousing First Home at a glance
MaineHousing’s First Home program provides a fixed-rate primary mortgage, often paired with down payment and closing cost assistance. It is built for first-time buyers and moderate-income households purchasing a primary residence in Maine.
Key points to know:
- You finance your home with a fixed-rate first mortgage through a participating lender. Terms and rates change over time, so always check current details on the MaineHousing website.
- Down payment assistance may be available as a second loan or similar assistance to help with upfront costs. Some options are deferred or forgivable, subject to program rules.
- Eligibility depends on household income and the property’s purchase price falling below county caps. These limits are updated annually.
- Many assistance options require a MaineHousing- or HUD-approved homebuyer education course before closing.
Programs change from year to year. Confirm product names, rates, income limits, purchase-price caps, and education requirements with MaineHousing and a participating lender before you shop.
Income limits and price caps
MaineHousing uses county-based limits tied to HUD’s area median income and updates them annually. Limits vary by household size and determine which products you can use. You can review the latest income tables through HUD’s official income limit resources.
Purchase-price caps are set by county and often vary by property type. Your purchase must be at or below the cap to qualify for the program you want. Even if you negotiate a price under the cap, the appraisal and lender guidelines must also align for the loan to work.
Helpful tips for Brunswick buyers:
- Check the most current Cumberland County income limits and price caps before you tour homes. Use the MaineHousing site and HUD income tables to frame your budget.
- Remember the appraisal matters. If a home does not appraise at the contract price, your financing may need to adjust.
- Some Brunswick homes, especially larger single-family properties, may exceed price caps. If so, you can still buy with other financing, but the MaineHousing benefits might not apply.
Down payment help and rate buydowns
Down payment assistance can reduce your upfront costs and may lower your monthly principal and interest. It usually comes as a second mortgage, grant-like assistance, or fixed dollar amount toward down payment and closing costs. Repayment terms vary. Some assistance is deferred until you sell or refinance. Others can be forgivable after a period of owner-occupancy. Always review the specific terms and any resale or recapture rules.
Rate buydowns can also improve affordability:
- Permanent buydown: You or another party pay discount points at closing to reduce your interest rate for the life of the loan. This increases upfront costs but can lower your monthly payment.
- Temporary buydown (such as a 2-1): An upfront fund subsidizes lower payments for the first one to three years, then your payment steps up to the note rate. Sellers sometimes offer these as a concession, depending on the market.
Underwriting rules vary by lender and loan type. Many lenders qualify you at the full note rate even if you have a temporary buydown. Ask your lender which rate they will use to qualify you and how seller credits or buydowns fit within program limits.
Start locally in Brunswick
Your first call should be to a MaineHousing-approved lender. Community banks, credit unions, mortgage brokers, and regional lenders that serve the Midcoast often work with MaineHousing’s First Home loans and can explain current options.
How to choose a lender:
- Confirm they actively originate MaineHousing loans and understand Cumberland County limits.
- Ask about down payment assistance availability, timing for reservations, and any overlays that affect qualifying.
- Compare estimates for rates, fees, points, and any buydown options.
Complete homebuyer education early if you plan to use down payment assistance. Many programs require it before funds are reserved. For local taxes, mapping, or floodplain questions that affect affordability and insurance, start with the Town’s resources on the Brunswick, Maine website.
Property considerations in the Midcoast:
- Older homes, condo associations, private wells, and septic systems are common. Ask about inspections and any loan or insurance requirements.
- Flood and coastal exposure can impact insurance costs and underwriting. Your lender and insurance agent can guide you.
- Taxes and utilities vary by neighborhood and property type, so include them in your monthly budget.
Step-by-step: your next 30–60 days
- Step 1: Get prequalified with a MaineHousing-approved lender. This shows what you can afford under current income and price caps.
- Step 2: Enroll in an approved homebuyer education course if you plan to use assistance. Keep your completion certificate handy.
- Step 3: Gather documents and submit your application. Your lender will verify income, assets, credit, and program eligibility.
- Step 4: Shop with confidence. Once under contract, your appraisal and inspections will confirm your financing path.
- Step 5: Review closing disclosures. Understand any DPA terms, occupancy requirements, and what happens if you sell or refinance in the future.
Document checklist
Bring these items to keep your loan on track. Your lender may ask for more based on your situation.
- Government-issued photo ID and Social Security number(s)
- Recent pay stubs covering the last 30 days
- Last 2 years of W-2s (and 1099s if applicable)
- Last 2 years of federal tax returns if self-employed or with complex income
- 2–3 months of bank statements for all accounts
- Statements for other assets used for funds or reserves (such as retirement accounts)
- Gift documentation if any funds are a gift
- Proof of additional income if applicable (such as child support or disability)
- Copy of your current lease, divorce decree, or bankruptcy/discharge papers if relevant
Program-specific items:
- Homebuyer education certificate if required for assistance
- Documents to establish first-time buyer status if requested
- Any MaineHousing or lender-specific DPA forms
Ready to talk options?
You do not have to figure this out alone. A local agent who understands Brunswick, Midcoast property nuances, and MaineHousing programs can help you focus your search, coordinate with lenders, and stay ahead of deadlines. If you are ready to explore first-time buyer paths in Brunswick, reach out to the team at KW Lifestyle Properties. We will help you take the next step with clarity and confidence.
FAQs
Who counts as a first-time buyer in Maine?
- Most programs define a first-time buyer as someone who has not owned a home in the past three years, though specific exceptions may apply; confirm with MaineHousing and your lender.
Can I pair MaineHousing with FHA or VA loans?
- Many state programs can be paired with FHA, VA, or conventional first mortgages, but product compatibility changes; your lender will confirm current options.
What if a Brunswick home is over the price cap?
- You can still purchase it with other financing, but MaineHousing program benefits and some down payment assistance likely will not apply to that property.
How do income limits work in Cumberland County?
- Income limits are based on HUD area median income and vary by household size; check the latest figures on the HUD income limit page and confirm with MaineHousing.
When are rates locked and DPA funds reserved?
- Lock timing and assistance reservations follow program and lender rules; ask your lender when you can lock and when assistance funds are secured in your file.
Do I need to be a Maine resident before I buy?
- Most programs require you to occupy the home as your primary residence but do not always require prior Maine residency; verify current rules with MaineHousing and your lender.
