Current mortgage rates in Maine

As of Monday, December 4, 2023, current mortgage interest rates in Maine are 7.57% for a 30-year fixed mortgage and 6.83% for a 15-year fixed mortgage.

Maine mortgage rate trends

Recent mortgage rate highs have begun to dip, offering some relief for homebuyers. After hitting record lows in 2021, rates rose steadily throughout much of 2022 and 2023. This higher rate environment has made affordability more of a challenge for Maine homebuyers.

National mortgage rates by loan type

Mortgage statistics for Maine

Known for its jagged coastlines and fabulous seafood, Maine is the northeasternmost state in the U.S. The state’s population is poised to grow slightly, up 1.7 percent, by 2030. If you want to make Maine your main home, here are key statistics about the housing market there:

• Median home value (as of Oct. 2023): $386,588 (Zillow)
• Homeownership rate (as of Dec. 2022): 74.9% (Census Bureau)
• Loan funding rate in 2022: 61% (Home Mortgage Disclosure Act)
• Average mortgage loan size in 2022: $300,990 (Home Mortgage Disclosure Act)

Mortgage options in Maine

There’s a variety of mortgage options available to homebuyers in Maine. Here are some of the most common:

• Maine conventional mortgages: To qualify for a conventional mortgage, you’ll need a minimum credit score of 620 and a debt-to-income (DTI) ratio no more than 45 percent. If you make a down payment of less than 20 percent, you’ll need to pay private mortgage insurance (PMI) premiums, as well.
• Maine FHA loans: If your credit history disqualifies you from a conventional mortgage, you might be able to obtain a loan insured by the Federal Housing Administration (FHA). If you have a down payment of at least 3.5 percent, you could qualify for this type of loan with a credit score as low as 580.
• Maine VA loans: If you’re a veteran or active-duty member of the military, you might qualify for a mortgage guaranteed by the Department of Veterans Affairs (VA). A VA loan doesn’t require a down payment or mortgage insurance, but you do need to pay a funding fee, which ranges from 1.25 percent to 2.15 percent.

First-time homebuyer programs in Maine

Maine Housing, the state’s housing finance authority, offers a variety of programs that can help you get an affordable mortgage with a low or no down payment. Here’s a closer look:

• First Home Loan Program: If you’re a first-time homebuyer or haven’t owned a home in the past three years, you might qualify for a low-interest, fixed-rate mortgage through Maine Housing. These mortgages have low- or no-down-payment options. Household income limits apply (although most Maine residents don’t exceed them), and a minimum credit score of 640 is required.
• Advantage Down Payment and Closing Cost Assistance: The Advantage program can be combined with a Maine Housing mortgage to provide $5,000 for your down payment or closing costs. You must contribute at least 1 percent of the loan amount from your own funds to qualify, and a homebuyer education class is required.
• Purchase Plus Improvement Program: If the home you’re buying requires renovation, the Purchase Plus Improvement program through Maine Housing is a single mortgage that finances both the purchase and renovation. The program provides $500 to $35,000 for home improvements, depending on who is completing the work, with the amount rolled into the mortgage. To qualify, the total cost of the home and the project must fall within purchase price limits. Certain upgrades are ineligible, such as building a deck or putting in a pool.
• Mobile Home Self-Insured Program: The Mobile Home Self-Insured program through Maine Housing offers mortgages for mobile homes costing up to $250,000 (if on owned land) to eligible applicants. No private mortgage insurance is required, even if you’re putting down less than 20 percent. Instead, you’ll be charged a slightly higher interest rate. You may also be able to combine the program with the Advantage assistance or Purchase Plus Improvement loan.

How to find the best mortgage rate in Maine for you

• Step 1: Strengthen your credit score - Before you start looking for a lender and applying for a loan, review your credit history and take steps to improve your score, such as paying down existing debt.
• Step 2: Determine your budget - Have a good understanding of how much house you can afford before you go shopping.
• Step 3: Know your mortgage options - There are a few different types of mortgages.
• Step 4: Compare rates and terms from several lenders - Rate-shop with at least three different lenders to get the best deal on rates, fees and terms.
• Step 5: Get preapproved for a mortgage - Getting a mortgage preapproval is the only way to get accurate loan pricing for your specific situation. Plus, it will show seller’s you’re serious when you make an offer.

Learn more about how to get a mortgage.

Additional Maine mortgage resources

• Maine first-time homebuyer resources: Get more help becoming a homeowner.
• Maine loan limits by county: Learn the conforming loan limit for your city or town.