2024 FHA Loan Limits in Maine
Prospective homeowners in Maine who have trouble qualifying for a conforming mortgage loan can turn to the Federal Housing Administration (FHA) for help. FHA-insured mortgages aim to make homeownership more accessible, offering loans to those with credit scores as low as 500 and allowing down payments as low as 3.5% for those with higher credit scores.
In 2024, FHA loan limits in Maine vary between $498,257 and $546,250 for a single-family home, depending on the county. Read on to learn everything you need to know about FHA loan limits and how to qualify for FHA-insured mortgages in Maine.
Maine FHA loan limits by county
| County name | One unit | Two units | Three units | Four units | Median sales price |
|---|---|---|---|---|---|
| ANDROSCOGGIN | $498,257 | $637,950 | $771,125 | $958,350 | $280,000 |
| AROOSTOOK | $498,257 | $637,950 | $771,125 | $958,350 | $140,000 |
| CUMBERLAND | $546,250 | $699,300 | $845,300 | $1,050,500 | $475,000 |
| FRANKLIN | $498,257 | $637,950 | $771,125 | $958,350 | $210,000 |
| HANCOCK | $498,257 | $637,950 | $771,125 | $958,350 | $290,000 |
| KENNEBEC | $498,257 | $637,950 | $771,125 | $958,350 | $255,000 |
| KNOX | $498,257 | $637,950 | $771,125 | $958,350 | $326,000 |
| LINCOLN | $498,257 | $637,950 | $771,125 | $958,350 | $290,000 |
| OXFORD | $498,257 | $637,950 | $771,125 | $958,350 | $265,000 |
| PENOBSCOT | $498,257 | $637,950 | $771,125 | $958,350 | $228,000 |
| PISCATAQUIS | $498,257 | $637,950 | $771,125 | $958,350 | $190,000 |
| SAGADAHOC | $546,250 | $699,300 | $845,300 | $1,050,500 | $475,000 |
| SOMERSET | $498,257 | $637,950 | $771,125 | $958,350 | $195,000 |
| WALDO | $498,257 | $637,950 | $771,125 | $958,350 | $262,000 |
| WASHINGTON | $498,257 | $637,950 | $771,125 | $958,350 | $170,000 |
| YORK | $546,250 | $699,300 | $845,300 | $1,050,500 | $475,000 |
How are FHA loan limits determined?
FHA loan limits change each year based on the specifics of housing markets, reflecting changing property values and the cost of living. As a result, loan limits can vary from county to county.
FHA loan limits are calculated as a percentage of the conforming loan limits set by the Federal Housing Finance Agency (FHFA). The FHA’s “floor,” or the lowest limit for an FHA-insured mortgage, is 65% of the conforming loan limit, or $498,257. The highest FHA limit, known as the “ceiling,” is 150% of the conforming loan limit, or $1,149,825.
FHA loan limits are also adjusted based on the number of units in a given property.
How to qualify for an FHA loan in Maine
The criteria to qualify for an FHA loan in Maine is the same as that of other states. The FHA sets fairly lenient requirements because these loans are designed to facilitate homeownership for those who may struggle to qualify for other mortgages. Borrowers benefit from low down payment requirements and flexible credit score thresholds. Here are the criteria borrowers must meet:
→ Minimum credit score. Borrowers can have a credit score as low as 500 if they can make a 10% down payment and must have a score of at least 580 for a 3.5% down payment.
→ Debt-to-income ratio. Borrowers must have a debt-to-income ratio of no more than 43%, including mortgage payments and any other monthly debts.
→ Down payment. Borrowers must provide a minimum down payment of at least 3.5% of the home’s purchase price.
→ Occupancy. Borrowers must be planning to use the house they are buying as their primary residence.
→ Mortgage insurance. Borrowers must obtain two types of FHA mortgage insurance to qualify for an FHA loan. The first is an upfront premium of 1.75% of the loan amount and the second is an annual premium that ranges between 0.15% and 0.75% of the loan amount.
→ Employment and income verification. Borrowers must show a history of stable employment and income sufficient for them to afford the monthly mortgage payments.
→ Property appraisal. Borrowers must get an FHA appraisal on the property they are purchasing to certify that it meets value, safety and structural standards set by the FHA.
Buying a multifamily property with an FHA loan
The FHA program allows prospective homeowners to buy multifamily homes of two to four units with just 3.5% down. The requirements for multifamily loans are the same as FHA requirements for a single-family loan, with the following differences:
→ Occupancy. Borrowers must intend to occupy one of the units as a primary residence for 12 months.
→ Utilizing rental income: Borrowers can have an appraiser determine fair market rent for the units and use future rental income (or current leases) to help them qualify for an FHA multifamily loan.
| Number of units | Low-cost FHA loan limit |
|---|---|
| Two | $637,950 |
| Three | $771,125 |
| Four | $958,350 |
FHA lenders in Maine
Lender | LendingTree rating | Min. FHA credit score | |
|---|---|---|---|
 Flagstar Bank | 580 | ||
 Guaranteed Rate | Not disclosed | ||
 PennyMac | 580 | ||
 Rocket Mortgage | 580 | ||
 BMO Harris | 580 |
