One of the top questions Maine buyers ask, especially here in York County, Saco, Arundel, and the surrounding Southern Maine areas is: “How much do I actually need for a down payment to buy a home?” Let’s break it down in a way that’s real, honest, and easy to understand.

The Real Numbers: What You Should Expect in Maine
Here in Maine, you do not need 20% down to buy a home.
Here’s what’s actually required:

✔ Conventional Loans
 3%–5% down for qualified buyers
 Great for buyers with solid credit
 Often lower monthly mortgage insurance than FHA

✔ FHA Loans
 3.5% down with a 580+ credit score
 More flexible for Maine buyers with credit challenges
 Popular with first-time homebuyers across Southern Maine
✔ VA & USDA (Yes, Maine Has USDA-Eligible Areas!)
 0% down
 VA for eligible veterans
 USDA for rural areas — and Maine has lots of them
✔ MaineHousing First Home Loan Program
 Often paired with FHA or conventional
 Offers down payment and closing cost assistance
 Income and price limits apply
 Extremely popular for first-time homebuyers in Maine

So, depending on where you buy and what program you qualify for, your down payment could be anywhere from 0% to 5%.

But Down Payment Isn’t Your Only Cost: Here Are the Others to Plan For When you’re buying a home in Maine, especially in high-demand areas like Saco, Biddeford, Kennebunk, or Arundel, here’s what else you’ll want to prepare for:

✔ Closing Costs
Typically 2%–4% of the purchase price, covering:
 Appraisal
 Title work
 Attorney fees
 Taxes & insurance
 Prepaids (interest, escrow)
Some buyers can roll assistance programs into these costs. One reason MaineHousing is so
popular.

✔ Earnest Money
Usually 1%–3% of the purchase price, showing the seller you’re serious.
This money goes toward what you already owe at closing. This amount can be negotiable.

✔ Inspections
Plan for:
 General home inspection
 Septic/well (very common in Maine)
 Radon
 Water tests
 Pest report
These can run $500–$1,000+ depending on the home and location.

What’s “Typical” for a Maine Buyer Right Now?

Most buyers I’m working with in York County and Cumberland County are putting:
 3% to 5% down on a conventional loan or
 3.5% down with FHA
 $10,000–$16,000 in closing costs (don’t stress there are programs to help), and we can
chat about a savings plan.

And because interest rates in Maine are expected to shift in the coming months, many buyers are choosing to buy now, secure the home they want, and refinance later when rates drop.

So… How Much Do YOU Need?
It depends on:
 Your credit
 Your loan type
 Where in Maine you’re buying
 Whether you’re using MaineHousing
 Whether you’re a first-time homebuyer
But the bottom line is:
Buying a home in Maine is far more doable than most people think. And you don’t need 20% down to make it happen.

Final Thoughts
Buying in Maine can feel overwhelming when you’re staring at down-payment myths online. But once you understand the actual numbers and the programs available to you, it becomes so much more approachable. My job is to simplify it, show you the real options, and guide you through what you need so you never feel lost in the process.

If you are thinking about real estate in Saco, Arundel, Biddeford, Kennebunk, or anywhere in Southern Maine…

Wherever you find me, on social media, in your inbox, or here on the blog, I’m here to guide you home with local insight and genuine care.

Kelly Walker of Maine Real Estate Co
207-286-5683
kellywalker@merealestateco.com