Home Financing Resources

to Ask Your Construction Loan Lender to Investigate For You

The following programs offer a range of financial benefits for acquiring a construction loan. Ask your preferred lenders whether one of these programs is a good fit for you. Not all lenders work with all loan programs, and it is a good investment of time to find a lender who offers the right loan program for you. Note some loan programs can be combined for further savings.

USDA Rural Development Loan Programs

Single Family Housing Guaranteed Loan Program (Section 502)

The Section 502 Guaranteed Loan Program assists approved lenders in providing low- and moderate-income households with the opportunity to own quality dwellings as their primary residence in eligible rural areas. Applicants cannot earn over 115% of area median income for their Maine county. Nearly all of Maine qualifies as an eligible rural area. Learn more about financial benefits and eligibility requirements here. 

Federal Housing Administration (FHA)

Ask your preferred banks and/or credit unions to tell you more about FHA loan products.

FHA Construction-to-Permanent loans

The FHA One-Time Close Construction-to-Permanent Loan is a secure, government-backed mortgage program available for new modular housing for primary residences. It allows borrowers to finance for the construction, lot purchase (if necessary), and permanent loan into one loan and a single closing all at once. Learn more here.

Veterans Affairs

Veterans Affairs (VA) helps Veterans, Servicemembers, and eligible surviving spouses become homeowners. VA home loan programs can assist eligible veterans through competitive low interest rates, reduced closing costs, eliminating downpayments, and more. 

VA Direct Home Loan: Purchase loan 

With a VA-backed home loan, the VA guarantees (or stands behind) a portion of the loan you get from a private lender. If your VA-backed home loan goes into foreclosure, the guarantee allows the lender to recover some or all of their losses. Since there’s less risk for the lender, they’re more likely to give you the loan under better terms. In fact, nearly 90% of all VA-backed home loans are made without a down payment. Ask an eligible lender what their standards are for working with VA loans.

Native American Direct Loan (NADL) Program

This loan helps eligible Native American Veterans finance the construction of homes on Federal Trust Land. Learn about eligibility requirements, loan benefits, and how to apply here.

Municipal & Tribal Loan Programs

Some cities, counties, and Tribes in Maine offer their own homebuyer assistance programs. Check out your local options. 

Four Directions Development Corporation Community Loan Program
Tribal governments, nonprofits, and tribal enterprises can work with Four Directions for financing, including real estate pre-development and construction costs related to single-family housing development and elder housing. Learn more by visiting the website and contacting Four Directions for more information.

Employer Loan Programs 

Check with your employer to see if they have any housing assistance programs or grants