Maine FHA Loans - Loan Benefits and Limits for ME Homebuyers

FHA Loans in Maine

Updated December 8, 2023

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Who wouldn’t want to purchase a home in place named “Vacationland?" Whether you're looking to lay down roots in the dense forest or build your home right on the coastline, buying a house in Maine is a great choice.

However, with the vast amount of home loan options on the market, it can be frustrating to determine which one is right for you. A Maine FHA loan is a great option to consider, especially for first-time homebuyers, so continue reading to learn more.

Why Choose an FHA Loan in Maine?

In Maine, the median home cost is slightly below average, meaning it is a great place to buy a home. Many people have taken advantage of this as the total value of FHA loans in Maine as of April 2019 was $32 million!

Benefits of FHA Loans in ME

FHA loans are great for first-time homebuyers, especially those who can’t or don’t want to make a large down payment.
FHA mortgage rates are typically lower than conventional mortgage rates.
FHA down payment and credit score requirements are typically lower than conventional loans
Sellers can contribute up to 6% of the purchase price or appraised value (whichever is less) towards the buyers’ closing costs.
FHA loans are assumable.

Get a quote for a low money down FHA Home Loan

FHA Loan Limits in Maine

Maximum FHA loan limits are adjusted yearly and depend on where in Maine you want to live. For example, the baseline limit of $524,225applies, but in Cumberland and York, the limit is higher due to a higher cost of living. This is done to make sure most people can afford a home. Check the table below to see the full loan limit list for Maine in 2025.

Maine FHA Loan Limits by County

County	FHA Loan Limit
Cumberland	$600,300
Sagadahoc	$600,300
York	$600,300
All other areas	$524,225

Are You Eligible for an FHA Loan in ME?

You may be eligible for an FHA loan, if you:

Have 2 years of steady employment, preferably with the same employer.
Have had steady income (or increasing income) in the past two years.
Have had less than two 30-day periods of late payments on your credit report.
Have declared bankruptcy no less than two years ago and have maintained good credit since.
Have not been a party in a foreclosure for at least three years and have maintained good credit since.
Anticipate your mortgage payment will be equal to or less than 30% of your gross income.

Learn More About FHA Loan Eligibility Requirements

Learn More About FHA Loan Requirements

Credit Requirements
Employment Requirements
Mortgage Insurance Premium Requirements

What Do You Need to Apply for an FHA Loan in ME?

Buyers must be able to provide the following information and documents as requested by lenders:

The addresses of all your residences over the past two years.
The names of your employers over the past two years.
W2's for the past two years and current paycheck stubs.
Your current gross monthly salary.
Your Social Security Number.
Names, addresses, and account numbers with balances on all checking and savings accounts.
Addresses and loan information of any other real estate you owned.
Self-employed individuals will need to provide personal tax returns for the past two years and a current income statement and balance sheet for the business.
Students will need to provide evidence of enrollment. If you have student loans, you need to provide verification information.

Note: Facts and figures sourced from the latest statistics available at the time of this writing including data from the United States Department of Labor, United States Census Bureau and the United States Department of Housing and Urban Development.