Maine 
PROPERTIES:You must contact a lender to apply and will be provided information on lending policies.Click here to contact an area office. Basic information can be provided over the telephone.
LOAN PURPOSES:
- Single family dwellings located in rural areas of Maine. Rural Development is restricted to guaranteeing loans in rural areas and therefore there are some ineligible areas.
MAXIMUM TERM:
- New construction. Plans must be certified by an autorized official. Construction Phase Inspection Reports are required (foundation, shell, and final inspection). Note: If builder provides an acceptable insured 10 year warranty plan, only a final inspection is required and the builder may self-certify plans..
- Purchase existing dwellings which have been completed for more than one year..
- Purchase and improve/repair existing dwellings.
- Finance certain new manufactured homes.
DOWN PAYMENT:
- Currently 6.75% with subsidy available to qualified applicants. Minimum interest rate is 1%.
INCOME LIMITS:None Required.
The Agency Will Need The Following:
- HUD very low, low and 38 year term Limits – available in any RD office. Based on Adjusted Family Income as defined in our regulations.
ELIGIBILITY:
FEES:
- Pre-qualification within 5 working days from receipt of a complete application, based upon information submitted by applicant.
Other Information:
- Credit Report $28.00 for individual and $38.00 for joint reports.
- Appraisal fee $280.00.
- Tax service fee $95.00.
- Appraisal fee and tax service fee can usually be included in the loan.
PROPERTY:
RATIOS:
- Contact local real estate agents, newspaper ads, and private listings.
- Contact the local office for information on Government owned properties.
- Principal, Interest, Taxes and Insurance (PITI) – very low-income applicants not to exceed 29% of gross monthly income; low-income applicants not to exceed 33% of gross monthly income.
LOT SIZE:
- Total Debt (TD) from all income categories not to exceed 41% of gross monthly income.
MAXIMUM FINANCING:
- Modest lot not to exceed 30% of the appraised value; and, which cannot be subdivided to make another house lot.
REFINANCING:
- 100% of appraised value not to exceed loan limit for the county (also see Maximum Loan Amounts below).
OTHER CREDIT:
- Must show inability to make current loan payments.
- Loan must have been for eligible loan purposes.
- Cause for inability to make payments is for reasons beyond your control - i.e. reduction in income.
SUBSIDY RECAPTURE:
- Must not be able to obtain other credit through conventional sources, including a Rural Development guaranteed loan.
PROHIBITIONS:
- If payments are subsidized through a reduction in the interest rate, some of the subsidy granted may have to be paid back when the property is sold, or title is otherwise transferred.
AVAILABILITY OF FUNDING:
- Inground swimming pools.
- Income producing property.
- Properties located in ineligible areas.
- Properties located in Flood Zones.
MAXIMUM LOAN AMOUNTS:
- Funding is allocated to each in October of each year and is typically limited. Priority is given to:
- Rural Development assumable mortgages.
- Hardship situations.
- Properties owned by Rural Development (in government inventory).
- Loans with a significant portion of leveraged funds from other sources (usually 20 percent or more).
WHO CAN ASSIST IN COMPLETING APPLICATIONS:
- HUD 203b limit http://www.hud.gov/fha/sfh/sfhhicos.html.
- RD employees.
- Many real estate agents and brokers.
- Most local CAP agencies.
Click here to obtain
more information
on our 502 loan program, or
to request an application.
If you would like to review USDA;
Regulations, Procedures, Notices, RD Forms, or RD Handbooks,
Click
Here.
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