The Maine Women's Journal - Fall 2007

Sub-prime.  Predatory lending.  Default.   Foreclosure.   These are the words that seem to have replaced rising home values, easy-to-get financing, and low interest rates in today’s real estate market.

Home sales have slowed and home prices are not rising at the rates we have been used to seeing for the past several years.

MaineHousing’s First Home program remains a trusted, secure financial partner for income-eligible people who have not owned a home for the past three years – the definition of a "first-time homebuyer" in our program.

And our program recently has been expanded so that veterans and active members of the military also may qualify – even if they are not first-time homebuyers – as long as they are income eligible and buy a home within the program’s price limits.

While today’s market is causing problems for many, it represents an opportunity for others. If you have reasonably good credit and are interested in buying a home, there are many homes on the market at prices that have not increased significantly over the past year.

MaineHousing has assisted more than 40,000 Maine people become homeowners, and we will continue to assist qualified homebuyers regardless of market conditions.

Our program in September provided loans at a 5_% interest rate, or slightly higher in cases where borrowers used the Maine Assist option. Maine Assist provides borrowers up to $4,000 in cash to use toward the cost of the downpayment and loan closing.

Many homeowners today are caught in adjustable rate mortgages that they no longer can afford. All of MaineHousing’s homebuyer loans are at fixed rates, which means the cost of the mortgage principle and interest will not change during the term of the loan, and are for 30 years. The long term reduces the monthly mortgage cost to the borrower.

The program’s income and home price limits are set at or above the median. Income limits vary by family size and the location in the state, but the lowest is an annual income of $55,600 for one-two person families, to as much as $84,400 for families of three or more. The maximum home price is $237,000 or more in all locations, and higher for two, three, or four unit owner occupied homes.

The complete list of income and home price limits can be found at www.mainehousing.org, along with more information about the program and the various program options, such as Purchase Plus Improvement. That option enables the homebuyer to borrow more than the home is selling for in order to make immediate repairs or improvements.

top

For more Home & Garden articles >>