Maine FHA Loan
Now let's take a quick look at some of the census data accumulated from the year 2000. There were 651,901 housing units in Maine in 2000 as compared to 587,045 in 1990, which is an increase of 11%. Out of these there were283, 631 located in the urban area and 413,270 located in the rural area. The homeownership rate in Maine is about 71.6% as of today and the vacancy rate including seasonal lodging stands at about 20.5%. The average household size in Maine is 2.39 people and most of the houses, apartments and condos were built after 1967.
A Maine FHA loan is available to all qualified home buyers, and a Maine FHA mortgage with large sums that can cover any median priced home in the country. FHA loan in Maine requires mortgage insurance with a small fee that can go up to three percent of the loan amount. This fee is paid with closing costs and is used to insure the loan with FHA.
FHA loan limits vary by county and can be found online for every state and county in the U.S. through the Federal Housing and Urban Development Web site, and the lender who originates your new home loan will have the most up to date information on FHA loan limits.
Buying or refinancing your home using the services of a Maine Mortgage lender is one of biggest decisions you will make in your life. Getting a Maine mortgage loan can be a daunting task thanks to the constant market fluctuations. This is especially true if the home buyer is not educated enough regarding the state specifications and some of the basic terms and practices used in the process of applying for a mortgage loan in Maine.
A down payment is always required, which is approximately twenty percent or so depending on credit. This can sometimes become very difficult for home buyers to arrange for such a large amount, even if they have a good credit score. However, keeping in mind the increasing prices of homes in Maine, most lenders have programs now that allow prospective buyers to put no money down on their home loans.
On the other hand Maine FHA home loan can be a welcome relief. They offer low down payment, flexible qualifying guidelines, limited lender's fees, and a maximum loan amount.
This is a loan that enables the home buyer to finance both the purchase and rehabilitation of a home through a Maine mortgage company. A portion of the loan is used to pay off the seller's existing mortgage and the remainder is placed in an escrow account and released as rehabilitation is completed. The basic guideline for a 203(k) loan is as follows:
- The home must be at least one year old.
- The cost of rehabilitation must be at least $5,000, but the total property value - including the cost of repairs - must fall within the FHA maximum mortgage limit.
- The 203(k) loan must follow many of the 203(b) eligibility requirements.
- Talk to your lender about specific improvement, energy efficiency, and structural guidelines.
Another interesting offering from the Maine FHA is the energy efficient mortgage or EEM. The Maine EEM or Energy Efficient Mortgage allows a home buyer to save future money on utility bills. This is done through financing the cost of adding energy-efficiency features to a new home as part of a Maine FHA insured home purchase. EEM can also be used with 203(b) as well as the 203(k) loans.
The cost of improvements has to be determined by a Home Energy Rating System or it can be done by an energy consultant in Maine. The cost of the improvements has to be less than the anticipated savings from these improvements. One and two unit new or existing homes are only eligible but condominiums are not. The value of improvements financed can be up to 5% of the value of the property or $4,000, whichever is greater. The sum total should fall within the FHA Maine loan limit.