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Maine FHA Loan Requirements

Maine FHA Loan Requirements

Maine FHA Loan Requirements 2026

2026 FHA loan limits for all 16 Maine counties, including the higher Cumberland, Sagadahoc and York limits, HUD’s credit and minimum investment rules, how FHA mortgage insurance works, and how FHA pairs with MaineHousing.

9 min readUpdated 2026Maine
$541,287FHA limit, 13 of 16 counties
$615,250Cumberland, Sagadahoc and York FHA limit
3.5%Minimum required investment
1.75%Upfront mortgage insurance premium

Maine FHA Loan Limits by County (2026)

FHA sets its limits by county and by the number of units in the property. In Maine, 13 of 16 counties sit at the CY2026 national floor, including the Bangor and Lewiston-Auburn areas, and the three counties of the Portland-South Portland metro area are set higher.

CountyOne UnitTwo UnitsThree UnitsFour Units
Cumberland, Sagadahoc and York (Portland-South Portland area)$615,250$787,650$952,050$1,183,200
13 other counties (national floor)$541,287$693,050$837,700$1,041,125

The 13 floor counties are Androscoggin, Aroostook, Franklin, Hancock, Kennebec, Knox, Lincoln, Oxford, Penobscot, Piscataquis, Somerset, Waldo and Washington. Confirm any county before relying on it at the HUD FHA Mortgage Limits lookup, selecting Limit Type “FHA Forward” and Limit Year CY2026.

Maine FHA Loan Requirements

FHA rules are federal, so they do not change between Maine and any other state. What changes is the loan limit and the price of the homes you are applying them to.

RequirementStandardNotes
Minimum required investment3.5% of the adjusted valueRequired for FHA to insure the maximum mortgage amount
Credit score 580 or aboveEligible for maximum financingLenders may apply a higher overlay
Credit score 500–579Maximum 90% loan-to-valueEffectively 10% down
Credit score below 500Not eligibleHUD minimum decision credit score
Mortgage insuranceRequiredBoth upfront and annual — see below
Loan limit$541,287 for one unit in 13 counties$615,250 in Cumberland, Sagadahoc and York

FHA Mortgage Insurance Premiums (MIP)

Every FHA loan carries two mortgage insurance charges: a one-time upfront premium and an annual premium paid monthly. These are national figures set by HUD, not Maine figures.

PremiumRateHow It Is Paid
Upfront (UFMIP)1.75% of the base loan amountOne-time premium
Annual, base loan up to $726,200, LTV above 95%55 basis pointsMonthly, for the life of the loan
Annual, base loan up to $726,200, LTV above 90% up to 95%50 basis pointsMonthly, for the life of the loan
Annual, base loan up to $726,200, LTV 90% or below50 basis pointsMonthly, for 11 years
Annual, base loan above $726,200, LTV above 95%75 basis pointsMonthly, for the life of the loan
Annual, base loan above $726,200, LTV above 90% up to 95%70 basis pointsMonthly, for the life of the loan
Annual, base loan above $726,200, LTV 90% or below70 basis pointsMonthly, for 11 years

These rates apply to loans with a term longer than 15 years. Maine’s one-unit FHA limits are below $726,200 in every county; two-unit limits exceed it in Cumberland, Sagadahoc and York, and three- and four-unit limits exceed it everywhere. Source: HUD Mortgagee Letter 2023-05.

FHA vs. Conventional in Maine

With Maine’s conforming limit at $832,750 in all 16 counties, conventional financing reaches higher than FHA’s one-unit limit everywhere in the state.

FactorFHAConventional
Minimum down payment3.5%3%–20% (practical range)
Practical credit threshold580Set by lender
Mortgage insuranceUpfront plus annual; annual for the life of the loan above 90% LTVPrivate mortgage insurance, which can be removed as equity builds
2026 Maine limit$541,287 or $615,250 by county$832,750 in all counties
Best suited toThinner credit, limited savingsStronger credit, or avoiding permanent mortgage insurance

See our guide on how to remove PMI for how private mortgage insurance ends on a conventional loan.

Combining FHA with MaineHousing

An FHA loan and MaineHousing’s programs are not alternatives. MaineHousing’s First Home Loan can carry FHA mortgage insurance, with a 3.5% down payment, and Advantage funds may be used toward that required down payment.

MaineHousing ProgramWorks With FHAWhat It Adds
First Home LoanYes — FHA is one of the mortgage insurance optionsLow fixed interest rate within income and purchase price limits
AdvantageYes — may be used toward the required down payment$5,000 toward the cash needed for closing, with no second mortgage
First GenerationPaired with the First Home Loan$10,000 in down payment and closing cost assistance

Pairing FHA with MaineHousing means meeting both sets of rules: FHA’s minimum investment and credit thresholds, and MaineHousing’s 640 credit minimum, first-time buyer rule, and income and purchase price limits. Check current terms in the MaineHousing First Home Program FAQs.

Maine FHA Loan 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.
Why are Cumberland, Sagadahoc and York counties higher?
HUD sets FHA limits by area from local home prices, within a national floor and ceiling. The three counties make up the Portland-South Portland metro area, where the 2026 one-unit limit is $615,250.
What credit score do I need for an FHA loan in Maine?
HUD allows maximum financing at a minimum decision credit score of 580 or above, limits scores from 500 to 579 to 90% loan-to-value, and does not insure loans below 500. MaineHousing’s First Home Loan sets its own 640 minimum.
How much is FHA mortgage insurance in Maine?
The upfront premium is 1.75% of the base loan amount. For a base loan up to $726,200 on a term over 15 years, the annual premium is 55 basis points above 95% LTV and 50 basis points at or below 95%; at 90% LTV or less it ends after 11 years. Larger base loans carry 70 to 75 basis points.
Can I use an FHA loan with MaineHousing?
Yes. FHA is one of the mortgage insurance options on MaineHousing’s First Home Loan, with a 3.5% down payment, and the $5,000 Advantage may be used toward that down payment.