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Maine Mortgage Guide

Maine Mortgage Guide

Maine Mortgage Guide 2026

Everything a Maine buyer needs in one place: 2026 FHA limits for all 16 counties, the $832,750 conforming limit, MaineHousing loans and assistance, how Maine property taxes and the homestead exemption work, and a closing cost breakdown built on the state’s transfer tax and recording fee.

10 min readUpdated 2026Maine
$541,287FHA limit, 13 of 16 counties
$832,750Conforming limit, all 16 counties
1.02%Est. effective property tax rate
$2.20 per $500Real estate transfer tax

Maine Loan Limits by County (2026)

Maine’s conforming loan limit is $832,750 in all 16 counties. FHA sits at the national floor of $541,287 in 13 counties, including the Bangor and Lewiston-Auburn areas, and is set higher at $615,250 in the three counties of the Portland-South Portland metro area.

AreaConforming LimitFHA LimitNotes
Cumberland, Sagadahoc and York counties (Portland-South Portland area)$832,750$615,250Highest FHA limit in Maine
Androscoggin County (Lewiston-Auburn area)$832,750$541,287National FHA floor
Penobscot County (Bangor area)$832,750$541,287National FHA floor
All other 11 counties$832,750$541,287National FHA floor

FHA limits come from HUD and conforming limits come from FHFA — they are set by different agencies. Verify any county at the HUD FHA Mortgage Limits lookup. Figures above are CY2026, retrieved September 2026.

Comparing Maine Loan Programs

Most Maine buyers choose between five routes. The credit scores below are practical lender thresholds rather than published program minimums, except where a program sets its own.

ProgramMin DownMin CreditBest For
FHA3.5%580Buyers with thinner credit or limited savings
VA0%No VA minimum (set by lender)Veterans, active duty, and eligible spouses
USDA0%No USDA minimum (640 is the automated-underwriting cutoff)Eligible rural Maine addresses within income limits
Conventional3%–20%Set by lenderStronger credit, or avoiding FHA’s upfront and annual premiums
MaineHousingDepends on the mortgage insurance chosen; 1% borrower contribution with Advantage640First-time buyers within MaineHousing limits

HUD allows maximum FHA financing at a credit score of 580 or above and limits borrowers between 500 and 579 to 90% loan-to-value (HUD). VA states that it does not require a minimum credit score (VA), and USDA says its guaranteed program has no credit score requirement (USDA Rural Development). MaineHousing’s First Home Loan requires a minimum credit score of 640 (MaineHousing).

MaineHousing Home Loans

The Maine State Housing Authority, known as MaineHousing, is established by state law as a public body corporate and politic and an instrumentality of the State. Its First Home Loan offers low fixed interest rate mortgages through participating lenders.

ProgramWho It Is ForKey Terms
First Home LoanBuyers with no ownership interest in a principal home in the past 3 yearsLow fixed interest rate; income and purchase price limits; 640 minimum credit score
AdvantageFirst Home Loan borrowers$5,000 toward the cash needed for closing; no second mortgage and no rate add-on
First GenerationBuyers who never lived in a home owned by their parents or legal guardians, or who were in foster care$10,000 in down payment and closing cost assistance
Salute MEQualified active duty, veterans and retired military0.50% discount on the First Home Loan 30-year fixed rate, plus the $5,000 Advantage

MaineHousing’s one-unit purchase price limits are $525,000 in the Bangor area and most of the state and $565,000 in the Portland and York/Kittery areas and in Cumberland, Sagadahoc and York counties. Check the MaineHousing income and purchase price limits before assuming you qualify.

Maine Property Taxes

Dividing the state median annual real estate tax bill of $3,036 by the state median owner-occupied home value of $296,600 gives an estimated effective rate of 1.02%. Sources: Census ACS 2020–2024 5-year table B25103 and table B25077.

That 1.02% is an estimated effective rate derived from two separate medians. It is not the median of individual households’ effective rates, and no single Maine household necessarily pays it. Your actual bill depends on your property’s assessed value and the local rate where it sits.

Home ValueEst. Annual TaxMonthly Escrow
$300,000$3,060 (Est.)$255
$350,000$3,570 (Est.)$298
$400,000$4,080 (Est.)$340
$500,000$5,100 (Est.)$425

Maine’s homestead exemption provides a reduction of up to $25,000 in the value of your home for property tax purposes. To qualify you must be a permanent resident of Maine, the home must be your permanent residence, and you must have owned a home in Maine for the twelve months before applying. Details are on the Maine Revenue Services homestead exemption page.

Treat the table above as a planning estimate built from the statewide 1.02% figure, and ask your lender for the actual parcel figure before you commit.

Maine Closing Costs

State law sets the real estate transfer tax and the registry of deeds recording fee. Everything else on the closing statement — lender, appraisal, title and settlement charges — is set by the provider.

FeeAmountSet By
Real estate transfer tax$2.20 per $500 of value, half on the seller and half on the buyer36 MRSA §4641-A
Additional transfer tax over $1,000,000$3.80 per $500 of value above $1,000,00036 MRSA §4641-A
Recording, per document$35Registers of deeds (33 MRSA §751)
Lender, appraisal, title and settlement feesSet by the providerCompare Loan Estimates

Maine Housing Markets

Where you buy in Maine changes your FHA limit, your MaineHousing limits and your USDA income limit. The table below is a qualitative orientation, not a price guide.

AreaMarket Notes
Portland area (Cumberland, Sagadahoc and York counties)FHA limit $615,250. MaineHousing’s Portland area income limit is $139,100 for 1–2 people, and USDA’s Portland area limit is $153,550.
York/Kittery areaMaineHousing income limit $132,900 for 1–2 people; USDA’s York-Kittery-South Berwick limit is $152,800.
Bangor area (Penobscot County)FHA at the national floor. MaineHousing income limit $106,500 for 1–2 people and a $525,000 one-unit purchase price limit.
Lewiston-Auburn area (Androscoggin County)FHA at the national floor and USDA at the $122,800 base limit.
Rest of MaineFHA at $541,287, USDA at $122,800 for 1–4 people, and MaineHousing’s $105,000 income limit for 1–2 people.

Maine Mortgage FAQs

What is the FHA loan limit in Maine for 2026?
It is $541,287 for a one-unit property in 13 of Maine’s 16 counties and $615,250 in Cumberland, Sagadahoc and York counties.
What is the conforming loan limit in Maine?
The 2026 one-unit conforming loan limit is $832,750 in all 16 Maine counties.
How high are property taxes in Maine?
Maine’s estimated effective property tax rate is about 1.02%, derived by dividing the state median annual real estate tax bill of $3,036 by the state median owner-occupied home value of $296,600. Your own bill depends on your property’s assessed value and local rate, and the homestead exemption can reduce your home’s taxable value by up to $25,000.
How much is the Maine transfer tax?
Under 36 MRSA §4641-A the tax is $2.20 for each $500 of value, imposed half on the seller and half on the buyer. When the value exceeds $1,000,000, an additional $3.80 for each $500 applies to the value above $1,000,000.
What does MaineHousing offer homebuyers?
MaineHousing’s First Home Loan offers low fixed interest rate mortgages to first-time buyers, with $5,000 in Advantage assistance toward closing, $10,000 through the First Generation program, and a 0.50% rate discount for qualified military through Salute ME.