See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated April 5, 2026
Homebuyer Programs in South Portland, ME (2026)
South Portland is a vibrant city in Cumberland County just south of Portland, offering convenient access to the Maine Mall area, waterfront neighborhoods, and Portland's job market. With a median home price around $460,000, it is one of southern Maine's more competitive housing markets. While South Portland does not currently offer a large city-funded down payment assistance grant, buyers here can take advantage of several strong state programs. MaineHousing's Advantage program provides a $5,000 grant for down payment and closing costs, while the First Generation Program offers $10,000 for buyers whose parents never owned a home. Veterans can access the Salute ME program for a 0.50% rate discount. Habitat for Humanity of Greater Portland actively builds affordable homes in South Portland for families earning 35-80% of area median income. The city also administers CDBG-funded homebuyer assistance through Cumberland County. By combining state and federal programs, South Portland buyers can still access meaningful 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 → |
- Type:
- Deferred Loan
- Amount:
- Affordable mortgage to purchase a Habitat-built home
- First-time only:
- Yes
How to Apply
Step 1: Check your eligibility. MaineHousing income limits for Cumberland County vary by household size but most Maine households qualify. Verify your income eligibility with a MaineHousing-approved lender.
Step 2: Complete homebuyer education. Take a hoMEworks-approved homebuyer education class through the Avesta Housing NeighborWorks HomeOwnership Center at 307 Cumberland Avenue in Portland. Classes cost $45 per person ($30 per person at some providers), and veterans and Avesta residents may attend free. Call (207) 405-6504 for schedule information.
Step 3: Contact a MaineHousing-approved lender. Maine has over 40 approved lenders who can help you apply for the First Home Loan Program with the $5,000 Advantage grant or the $10,000 First Generation grant.
Step 4: Explore local programs. Contact the South Portland Community Development office about CDBG-funded homebuyer assistance. Habitat for Humanity of Greater Portland builds affordable homes in South Portland for qualifying families — call (207) 772-2151 or visit habitatportlandme.org.
Step 5: Get pre-approved for a mortgage. Work with your lender to determine how much home you can afford. Local credit unions like cPort and University Credit Union are MaineHousing-approved lenders in the area.
Step 6: Find a home within program limits. MaineHousing purchase price limits vary by county. Your lender can confirm the current limits for Cumberland County.
Step 7: Submit your application and close. Your lender will process the MaineHousing loan and any grant assistance. The $5,000 Advantage grant or $10,000 First Generation grant is credited at closing.
Frequently Asked Questions
How much down payment assistance can I get in South Portland?+−
Do I have to be a first-time homebuyer to qualify?+−
What is the maximum home price in South Portland?+−
What homebuyer education is required?+−
Does Habitat for Humanity build in South Portland?+−
Are there city-specific programs in South Portland?+−
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