Gov. LePage, MaineHousing announce First Home Loan program interest rate cuts for veterans, active military

Quarter-point reduction to already low First Home Loan rates reflects appreciation for service

For Immediate Release

Contact:     Deborah Turcotte
MaineHousing Public Information Manager
(207) 626-4600

Governor Paul R. LePage and MaineHousing Director John Gallagher today announce that the housing authority is offering veterans and active duty military low home loan rates starting at 3.25% (4.217% APR, 0 points).

The quarter-point reduction on MaineHousing’s competitive First Home Loans is in appreciation for the commitment and sacrifices made by Maine’s veterans and active duty military on behalf of Maine’s residents.

“Maine’s military personnel make sacrifices that protect our way of life, and that includes the opportunity for us to buy a house to call a home,” said Governor LePage. “By reducing its interest rates for veterans and active duty military, MaineHousing is making it easier for them to have a home to call their own, too.”

The interest rate reduction applies for veterans and active duty military that are first-time or returning homebuyers and is in addition to the other features of MaineHousing’s First Home Loan Program, including up to $3,500 towards down payment and closing costs. A hoMEworks-approved homebuyer education class is required to receive the $3,500 in assistance.

“Buying a house can be complicated and overwhelming,” said MaineHousing Director John Gallagher. “A homebuyer education class makes the process easier. We believe homebuyers who take a homebuyer education class before they buy a house are more successful as homeowners.”

MaineHousing’s competitive 30-year fixed rate mortgages are available to eligible first-time or returning homebuyers with little or no down payment when combined with a government guaranty such as VA, FHA or RD. Under the First Home Loan Program, returning homebuyers must not have owned a home in the last three years. That requirement is waived for veterans and active duty military. The home must be in Maine and be the homebuyer’s primary residence. Also, the loan stays in Maine.

In 2015, MaineHousing’s First Home Loan Program began offering first-time and returning homebuyers up to $3,500 in down payment and closing cost assistance, and 750 homebuyers purchased homes. MaineHousing’s goal is 1,000 home loans this year.

MaineHousing’s First Home Loans are available through more than 40 partner-lenders (called Green Key Lenders) statewide. They include most major banks statewide as well as a few mortgage corporations.

Veterans, active duty military. and interested homebuyers may learn more about the First Home Loan Program at www.mainehousing.org.