See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated April 5, 2026
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.
State Programs in Maine
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| 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:
- 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
Federal Programs
| 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 → |
| 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 → |
- 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:
- 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
Nonprofit Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| 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 → |
- 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
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.
Frequently Asked Questions
How much down payment assistance can I get in Scarborough?+−
Do I have to be a first-time homebuyer to qualify?+−
What is the maximum home price I can pay?+−
What homebuyer education is required?+−
Does Scarborough have its own town-funded homebuyer program?+−
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