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Homebuyer Programs in Augusta, ME (2026)

Last updated April 5, 2026 | Population: 19,284 | Median home price: $280,000 | Est. closing costs: $5,500 - $8,500

Skyline of Augusta, ME

Augusta is the capital city of Maine, located in Kennebec County along the Kennebec River in the central part of the state. With a median home price around $280,000, Augusta is one of Maine's most affordable markets and a strong option for first-time buyers. The MaineHousing Advantage program provides a $5,000 grant toward down payment and closing costs, and first-generation homebuyers may qualify for a $10,000 grant through the MaineHousing First Generation Program. The MaineHousing First Home Loan offers a low fixed-rate 30-year mortgage with little or no down payment. Locally, the Augusta Housing Authority operates a homeownership program for Housing Choice Voucher holders, and Southern Kennebec County Habitat for Humanity builds affordable homes in the area. The Kennebec Valley Community Action Program provides homebuyer education and housing services. By combining state and federal programs, eligible Augusta buyers could stack $15,000 or more in assistance toward a home purchase.

Top Homebuyer Programs in Augusta

Augusta Housing Authority Homeownership Program
Type:
Grant
Amount:
Housing Choice Voucher covers a portion of monthly mortgage payments
First-time only:
Yes
FHA Loans
Type:
Government-Insured Mortgage
Amount:
Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026)
First-time only:
No
FHLBA Community Partners Product
Type:
Forgivable Loan
Amount:
Up to $20,000 in home purchase assistance for down payment and closing costs
First-time only:
No
FHLBA First Time Homebuyer Product
Type:
Forgivable Loan
Amount:
Up to $17,500 in home purchase assistance for down payment and closing costs
First-time only:
Yes
FHLBA Workforce Housing Plus+
Type:
Forgivable Loan
Amount:
Up to $15,000 in home purchase assistance for down payment and closing costs
First-time only:
No
Good Neighbor Next Door (HUD)
Type:
Government Property Sale Program
Amount:
50% discount off the list price of HUD-owned homes
First-time only:
Yes
Home Possible Mortgage (Freddie Mac)
Type:
Government-Guaranteed Mortgage
Amount:
Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
First-time only:
No
HomeReady Mortgage (Fannie Mae)
Type:
Government-Guaranteed Mortgage
Amount:
Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
First-time only:
No
HUD $100 Down Program
Type:
FHA-Financed HUD REO Purchase
Amount:
Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs.
First-time only:
No
USDA Rural Development Loans
Type:
Government-Guaranteed Mortgage
Amount:
100% financing (no down payment required); loan amount up to appraised value
First-time only:
No
VA Loans
Type:
Government-Guaranteed Mortgage
Amount:
No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026)
First-time only:
No
Southern Kennebec County Habitat for Humanity Homeownership Program
Type:
Zero-Interest Loan
Amount:
Affordable home purchase with sweat equity; families partner to build their own home
First-time only:
No
MaineHousing Advantage
Type:
Grant
Amount:
$5,000
First-time only:
Yes
MaineHousing First Generation Program
Type:
Grant
Amount:
$10,000 grant plus 1% below-market interest rate
First-time only:
Yes
MaineHousing First Home Loan Program
Type:
Deferred Loan
Amount:
Low fixed-rate 30-year mortgage with little or no down payment
First-time only:
Yes
MaineHousing Salute ME
Type:
Deferred Loan
Amount:
0.50% interest rate discount on MaineHousing First Home Loan rate
First-time only:
No

How to Apply

  1. Step 1:

    Check your eligibility. Most MaineHousing programs require that you have not owned a home in the past three years, have a minimum credit score of 640, and meet income limits that vary by household size and county. Most Maine households are income-eligible for MaineHousing programs.

  2. Step 2:

    Complete homebuyer education. MaineHousing requires an approved hoMEworks homebuyer education course before closing. The Kennebec Valley Community Action Program (KVCAP) at 225 Western Avenue, Augusta, offers hoMEworks-certified homebuyer education. Contact them at 207-622-4761 or 1-800-542-8227. Online courses are also available through eHome America.

  3. Step 3:

    Contact a MaineHousing-approved lender. MaineHousing works with more than 40 First Home Lenders statewide. Local options in Augusta include Connected Credit Union at 207-623-3857, Trademark Federal Credit Union, and Maine State Credit Union.

  4. Step 4:

    Determine which programs you qualify for. Your lender will help you apply for the MaineHousing First Home Loan and determine if you qualify for the $5,000 Advantage grant or the $10,000 First Generation grant. Veterans should ask about the Salute ME interest rate discount.

  5. Step 5:

    Explore local homeownership options. If you are a Housing Choice Voucher holder, contact the Augusta Housing Authority at (207) 626-2357 about their homeownership program. Southern Kennebec County Habitat for Humanity at 69 Winthrop Street, Augusta, builds affordable homes for qualifying families.

  6. Step 6:

    Find a home within program guidelines. Work with a real estate agent familiar with the Augusta market. With a median price of $280,000, Augusta offers strong affordability compared to coastal Maine.

  7. Step 7:

    Submit your application and close. Your lender will process your MaineHousing loan application and coordinate grant funds. The Advantage grant is credited at closing. Plan for a typical closing timeline of 30 to 45 days.

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