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Get Matched Free →Homebuyer Programs in Scarborough, ME (2026)
Scarborough is a coastal town in Cumberland County, Maine, located just south of Portland along the Atlantic coast. With a median home price around $589,000, Scarborough is one of the more expensive markets in Maine, making down payment assistance especially valuable for buyers here. While Scarborough does not offer its own town-funded homebuyer program, buyers can access several strong state and nonprofit options. The Katahdin Trust Equity Builder Program provides up to $25,000 in grant funds for down payment, closing costs, and interest rate reduction through their local Scarborough branch. The MaineHousing Advantage program offers $5,000 toward closing costs, and the MaineHousing First Generation Program provides a $10,000 grant plus a below-market interest rate for first-generation homebuyers. By combining these programs with federal options like FHA or VA loans, Scarborough buyers can potentially stack over $40,000 in total assistance.
Top Homebuyer Programs in Scarborough
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| FHA Loans | Government-Insured Mortgage | Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026) | No | View → |
| FHLBA Community Partners Product | Forgivable Loan | Up to $20,000 in home purchase assistance for down payment and closing costs | No | View → |
| FHLBA First Time Homebuyer Product | Forgivable Loan | Up to $17,500 in home purchase assistance for down payment and closing costs | Yes | View → |
| FHLBA Workforce Housing Plus+ | Forgivable Loan | Up to $15,000 in home purchase assistance for down payment and closing costs | No | View → |
| Good Neighbor Next Door (HUD) | Government Property Sale Program | 50% discount off the list price of HUD-owned homes | Yes | View → |
| Home Possible Mortgage (Freddie Mac) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HomeReady Mortgage (Fannie Mae) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HUD $100 Down Program | FHA-Financed HUD REO Purchase | Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs. | No | View → |
| USDA Rural Development Loans | Government-Guaranteed Mortgage | 100% financing (no down payment required); loan amount up to appraised value | No | View → |
| VA Loans | Government-Guaranteed Mortgage | No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026) | No | View → |
| Habitat for Humanity of Greater Portland Homeownership Program | Deferred Loan | Affordable mortgage to purchase a Habitat-built home | Yes | View → |
| Katahdin Trust Equity Builder Program | Grant | Up to $25,000 in grant funds for down payment, closing costs, and interest rate reduction | Yes | View → |
| MaineHousing Advantage | Grant | $5,000 | Yes | View → |
| MaineHousing First Generation Program | Grant | $10,000 grant plus 1% below-market interest rate | Yes | View → |
| MaineHousing First Home Loan Program | Deferred Loan | Low fixed-rate 30-year mortgage with little or no down payment | Yes | View → |
| MaineHousing Salute ME | Deferred Loan | 0.50% interest rate discount on MaineHousing First Home Loan rate | No | View → |
- 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
- Type:
- Forgivable Loan
- Amount:
- Up to $20,000 in home purchase assistance for down payment and closing costs
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to $17,500 in home purchase assistance for down payment and closing costs
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Up to $15,000 in home purchase assistance for down payment and closing costs
- First-time only:
- No
- Type:
- Government Property Sale Program
- Amount:
- 50% discount off the list price of HUD-owned homes
- First-time only:
- Yes
- 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
- 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
- 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
- Type:
- Government-Guaranteed Mortgage
- Amount:
- 100% financing (no down payment required); loan amount up to appraised value
- First-time only:
- No
- 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
- Type:
- Deferred Loan
- Amount:
- Affordable mortgage to purchase a Habitat-built home
- First-time only:
- Yes
- Type:
- Grant
- Amount:
- Up to $25,000 in grant funds for down payment, closing costs, and interest rate reduction
- First-time only:
- Yes
- Type:
- Grant
- Amount:
- $5,000
- First-time only:
- Yes
- Type:
- Grant
- Amount:
- $10,000 grant plus 1% below-market interest rate
- First-time only:
- Yes
- Type:
- Deferred Loan
- Amount:
- Low fixed-rate 30-year mortgage with little or no down payment
- First-time only:
- Yes
- Type:
- Deferred Loan
- Amount:
- 0.50% interest rate discount on MaineHousing First Home Loan rate
- First-time only:
- No
How to Apply
- Step 1:
Check your eligibility. Most programs require household income at or below 80% of the Area Median Income for Cumberland County. The Katahdin Trust Equity Builder Program and MaineHousing programs each have their own income limits that vary by household size.
- Step 2:
Complete homebuyer education. MaineHousing requires a hoMEworks-approved homebuyer education course before closing. The Cumberland County Housing Authority offers free first-time homebuyer workshops, and several HUD-approved counseling agencies serve the Greater Portland area.
- Step 3:
Contact Katahdin Trust in Scarborough. Visit the Katahdin Trust Scarborough branch at 136 US Route 1 or call (207) 510-7017 to apply for the Equity Builder Program. Grant funds are available on a first-come, first-served basis.
- Step 4:
Get pre-approved for a mortgage. Connect with a MaineHousing-approved lender to apply for the First Home Loan Program, which offers low fixed-rate 30-year mortgages. The Advantage option adds $5,000 toward closing costs.
- Step 5:
Explore Habitat for Humanity options. Habitat for Humanity of Greater Portland builds affordable homes in Cumberland County, including in Scarborough. Contact them to learn about upcoming homeownership opportunities.
- Step 6:
Find a home within program limits. Check MaineHousing purchase price limits for Cumberland County. The Equity Builder Program requires property insurance and an inspection.
- Step 7:
Submit your applications and close. Work with your lender to coordinate all program applications. Allow extra time for grant processing and inspections.