2015 Maine Home Buyer Guide

Maine First Time Home Buyers Guide
2015 Edition by Brendan Fontaine (207) 619-4179
Welcome Maine Home Buyers!

The purpose of this guide is to walk you through the key steps of the home buying process,
and to explain them in a way that you will understand so that you are ready to make an offer
on the home of your dreams with confidence.
It is completely normal at this stage to feel lost, confused and nervous about the mortgage
process, but by the end of this guide you will understand the steps of the process and ready
to begin!
I created this guide because after helping literally hundreds of Maine residents secure their
mortgage financing, I have realized that there is really no good source of reliable and
understandable information that is freely available on the web for homebuyers to have that
doesnt confuse them further.
It would be impossible for me to detail every loan program available, but I will explain the
loan programs that make up 90% or more of the loan requests we see in Maine, and if I do
not cover a certain loan program you would like to know more about, call me on (207) 6194179 or email me at bfontaine@primeres.com any time me any time to discuss!
Sincerely,
Brendan Fontaine
Maine Mortgage Lender
Brendan C. Fontaine | Primary Residential Mortgage

Office: 207.618.9153 | Cell: 207.619.4179 | eFax: 207.370.6864
Web: www.bestmainehomeloans.com Email: bfontaine@primeres.com
ME LIC # 102571 | NH LIC # NH102571 | NM Bar # 24042

Get Pre-Approved with a Maine Lender

Getting Pre-Approved with a Maine Lender is where your home buying journey begins for
several reasons, most importantly because your Realtor will need your Pre-Approval letter
before they will submit an offer on your behalf, and many Realtors will want to see your PreApproval Letter before they will show you properties.
The pre-approval process is designed to answer: Are ready to buy a home today; Which loan
programs are you eligible for financing; Will you need a down payment; Will you need
closing costs; What is your maximum home purchase price you are approved for?
In order to answer those questions, your lender will review the following for everyone who
will be on the mortgage: Credit report; Employment and Income Information for the past 2
years; the most recent bank statements; your rental history.
Once your lender has reviewed all of these items, they will be able to determine if you are
eligible for mortgage financing at this time, and explain which loan programs you are eligible
for and why.
Getting pre-approved for a mortgage no longer requires scheduling an appointment weeks
out with a lender requiring you to have to take time off from work. Today you can Securely
Apply Online For A Mortgage and get an answer fast! I encourage you to Apply Online after
you have read through this guide.
Now, lets discuss the most common mortgage programs available for Maine First Time
Homebuyers!

Office: 207.618.9153 | Cell: 207.619.4179 | eFax: 207.370.6864

Maine USDA Rural Development Loan

The USDA Rural Development Loan is hands down the FIRST choice and most requested
mortgage program I offer and here are some of the programs highlights.
Down Payment Requirement? 0 Down Payment aka 100% Financing!
Interest Rates: Better than the market average and same for all credit scores.
Mandatory Mortgage Insurance Premiums? Yes
Upfront mortgage insurance premium (MIP): 2%
Monthly MIP: .4%
Income Eligibility Requirements? Yes, if your income exceeds the USDA guidelines, you are
ineligible for this loan. Contact me for more information.
Property Eligibility Requirements: Yes, USDA has determined areas of the State of Maine
which are eligible and ineligible for USDA financing.
Maximum Loan Amount? No.
Financed closing costs: In some cases you may finance up to 2% of your closing costs into
your total loan amount, enabling you to pay NO down-payment and NO closing costs out of
your pocket!

Office: 207.618.9153 | Cell: 207.619.4179 | eFax: 207.370.6864

Maine FHA Home Loans

FHA loans are mortgages insured by the Federal Housing Administration (FHA) and are an
excellent mortgage product for First Time Home Buyers because of their flexibility. Here are
some of the programs highlights.
Down Payment Requirement? 3.5% Down Payment
Interest Rates? Better than the market average and same for all credit scores.
Upfront mortgage insurance premium (MIP): 1.75%
Monthly MIP: .85%
Income Eligibility Requirements? There is no maximum income limit.
Property Eligibility Requirements? The entire State of Maine is eligible, but certain
restrictions do apply for Condos, etc.
Maximum Loan Amounts? Yes, FHA has a maximum loan amount for every county in
Maine. Call me for more information.
Gift funds can be used for 100% of the borrowers closing costs and down payment, making
them a truly affordable option for an individual with little cash on hand.

Office: 207.618.9153 | Cell: 207.619.4179 | eFax: 207.370.6864

Maine (VA) Veterans Guaranteed Home Loan

VA loans are home loans for the purchase of a primary residence available to consumers who
have served or are presently serving in the U.S. military.
Who Is Eligible for a VA Loan?
Veterans
Active-duty personnel
Reservists/National Guard members
Some surviving spouses
Down Payment Requirement? No Down Payment
Interest Rates? Better than the market average and same for all credit scores.
Upfront mortgage insurance premium (MIP): 2.15%
Monthly MIP: No
Income Eligibility Requirements? No
Property Eligibility Requirements? The entire State of Maine is eligible, but certain
restrictions do apply for Condos, etc.
Maximum Loan Amounts: The VA does have county loan limits throughout the country
limiting the maximum loan that the VA will guarantee, but there are NO limits in Maine at
this time.
Office: 207.618.9153 | Cell: 207.619.4179 | eFax: 207.370.6864

Fannie Mae 3% Down Payment

Back for 2015 - Fannie Mae is again offering a 97% LTV financing option to help lenders serve
qualified home buyers. Here are some of the highlights:
Down Payment Requirement? 3% Down Payment
Interest Rates? Mortgage rates can be determined by credit score.
Mandatory Mortgage Insurance Premiums? Yes, the homebuyer will be required to have a
private mortgage insurance premium from a Mortgage Insurance Company. The lender will
provide you with your MI quotes.
Income Eligibility Requirements? No.
Property Eligibility Requirements? The property must be a one-unit principal residence,
including condos, co-ops, and PUDs. Manufactured housing is not permitted.
Maximum Loan Amount: $417,000 is the maximum loan amount in Maine for Conventional
mortgage financing.

Office: 207.618.9153 | Cell: 207.619.4179 | eFax: 207.370.6864

Maine Home Buyer Programs Compared

The BEST WAY to illustrate how each of these loan programs compare to one another is to do
a side by side comparison using identical loan variables, such as the purchase price and rate.
See below how different your mortgage payment can be depending on the loan program you
use.
Please NOTE that the figures below DO NOT include taxes and insurance in the payment
column.
Program
Price
Rate
Down Payment
Financed MI
Monthly MI
Payment
USDA
$150,000
4.25%
2%
.4%
$802.67
FHA
$150,000
4.25%
3.5% = $5,250
1.75%
.85%
$827.07
VA
$150,000
4.25%
2.15%
$753.77
Fannie Mae
$150,000
4.25%
3% = $4500
1.10%
$849.15

Office: 207.618.9153 | Cell: 207.619.4179 | eFax: 207.370.6864

Checklist of Required Documents
Last Two Pay-Stubs

Last Two Years Tax returns, all pages, all schedules
Last Two Years W-2s
Last Two months bank statements, all pages and original format;
A copy of drivers licenses
A copy of social security cards
A recent utility bill
A recent mortgage statement, for all properties owned
A recent tax bill, for all properties owned
A recent homeowners bill, for all properties owned
Judicial decree or court order for each obligation due to legal action reporting on
credit
Bankruptcy / Discharge papers for any bankruptcies in credit history
A copy of the fully executed purchase and sale
A copy of the listing sheet
A copy of the deed
Source of down payment funds, recent statement, all pages
A copy of the cleared earnest money check and corresponding bank statement to
verify that the check has cleared your account.

Office: 207.618.9153 | Cell: 207.619.4179 | eFax: 207.370.6864

Time to APPLY this Knowledge!

I know you still have questions, and this guide could not cover every topic related to
mortgage financing in Maine, but by reading my overview of the home buying process, you
now have a distinct advantage and superior knowledge of the process and loan programs to
that of an ordinary first-time homebuyer and light years more prepared to buy a home!
If you are ready to take the first step towards buying your first home in Maine, I would love
to help you buy your first home!
I offer all of my homebuyers a FREE No Obligation Online Mortgage Pre-Approval option
which is very popular, as well as traditional face to face appointments.
Brendan C. Fontaine
Retail Branch Manager
Primary Residential Mortgage, Inc.
Phone: (207) 619-4179
Fax: (207) 370-6864
bfontaine@primeres.com
NMLS #: 102571

Office: 207.618.9153 | Cell: 207.619.4179 | eFax: 207.370.6864

Maine Mortgage Resource List
FREE iPhone & Android Phone Mortgage Calculator
USDA Rural Development Maine:

o USDA Income Eligibility
o USDA Property Eligibility
FHA HUD Maine:

o FHA Loan Limits in Maine
VA Guaranteed Home Loans:
Fannie Mae 3% Down First Time Home Buyer Loan:
Maine Housing (MaineHousing) Home Loans:
MGIC's Homebuyer Education:
Maine Homes for Sale:
Maine Real Estate Agents:

Office: 207.618.9153 | Cell: 207.619.4179 | eFax: 207.370.6864

2015 Maine Home Buyer Guide

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2015 Maine Home Buyer Guide

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Maine First Time Home Buyers Guide

2015 Edition by Brendan Fontaine (207) 619-4179

Welcome Maine Home Buyers!

Brendan C. Fontaine | Primary Residential Mortgage

Maine First Time Home Buyers Guide

Get Pre-Approved with a Maine Lender

Brendan C. Fontaine | Primary Residential Mortgage

Maine First Time Home Buyers Guide

Maine USDA Rural Development Loan

Brendan C. Fontaine | Primary Residential Mortgage

Maine First Time Home Buyers Guide

Maine FHA Home Loans

Brendan C. Fontaine | Primary Residential Mortgage

Maine First Time Home Buyers Guide

Maine (VA) Veterans Guaranteed Home Loan

Maine First Time Home Buyers Guide

Fannie Mae 3% Down Payment

Brendan C. Fontaine | Primary Residential Mortgage

Maine First Time Home Buyers Guide

Maine Home Buyer Programs Compared

Brendan C. Fontaine | Primary Residential Mortgage

Maine First Time Home Buyers Guide

Checklist of Required Documents

Last Two Pay-Stubs

Brendan C. Fontaine | Primary Residential Mortgage

Maine First Time Home Buyers Guide

Time to APPLY this Knowledge!

Brendan C. Fontaine | Primary Residential Mortgage

Maine First Time Home Buyers Guide

Maine Mortgage Resource List

FREE iPhone & Android Phone Mortgage Calculator

USDA Rural Development Maine:

FHA HUD Maine:

VA Guaranteed Home Loans:

Fannie Mae 3% Down First Time Home Buyer Loan:

Maine Housing (MaineHousing) Home Loans:

MGIC's Homebuyer Education:

Maine Homes for Sale:

Maine Real Estate Agents:

Brendan C. Fontaine | Primary Residential Mortgage

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