fbpx Skip to content

USDA Loan Maine: Requirements, Income Limits, and Eligibility

Reviewed by: David Naimey

Approved by: Chad Turner

If you’re dreaming of homeownership but are struggling to find affordable financing options, USDA loans might be the solution for you. USDA home loans are backed by the United States Department of Agriculture and are geared towards helping people buy quality homes in rural areas of Maine. The USDA plays a pivotal role in promoting economic growth and stability in local communities across the nation by offering family housing programs and federal funding opportunities to those choosing rural housing.

As a national government program having community development as one of its key priorities, USDA secure loans provide favorable loan terms and lower interest rates, thus favoring people with low to average incomes. The most important feature of a USDA loan is that it finances 100% of the home and requires no down payment. This makes homeownership easier and more accessible to people in Maine. 

To qualify for a USDA loan, the property must be located in a rural Maine area. This excludes the main urban centers of Bangor and Portland but includes many areas located near towns. The USDA loan program has an eligibility map that shows which Maine parts qualify for a USDA loan.

What Are USDA Loans in Maine?

Designed to help borrowers achieve homeownership in rural areas, USDA loans are guaranteed by the U.S. Department of Agriculture. Lenders like banks can afford to extend favorable mortgage terms to USDA program borrowers because they have the backing of the U.S. Department of Agriculture.

Benefits of USDA Loans

The main advantages of USDA loans in Maine are the competitive interest rates and the absence of a down payment. USDA loans are aimed at people with low to average incomes to help them enter the property ladder and buy their home. USDA loans also come with flexible credit requirements to make it even easier for people to apply for a mortgage. 

No Down Payment Required

One of the most significant benefits of USDA loans is that they typically do not require a down payment. This makes homeownership more accessible for individuals and families who may not have substantial savings for a down payment.

Low Interest Rates

The USDA housing loans program provides competitive fixed interest rates compared to conventional mortgages. This is an opportunity for lower monthly mortgage payments and long-term savings for applicants. 

Flexible Credit Requirements

USDA home loan applications have more lenient credit requirements compared to some other loan programs. While a good credit score is still beneficial, borrowers with less-than-perfect credit history may still qualify for a USDA loan.

Affordable Mortgage Insurance

USDA loans feature mortgage insurance premiums that are generally lower than those of other loan programs, such as FHA loans. This can help reduce the overall cost of becoming a homeowner and lower payments month after month.

USDA Loan Requirements in Maine

To qualify for the USDA housing programs in Maine, you’ll need to meet certain eligibility criteria. 

USDA Income Limits

Your household income must fall within specified limits based on the size of your family and the county where you plan to buy a home. In the case of Maine, the income limit is $91,900 for Bangor County and reaches $114,850 for Portland County. 

Property Location

The home you’re looking to purchase must be located in a designated rural area. Contrary to popular belief, USDA loans are not just for farmland but also apply to residential properties in eligible rural communities across Maine. The general rule is that the property must be located in an area with a total population of less than 35,000 people. 

Property Requirements

With a USDA home loan, you can buy a new house or an old property needing renovation. In any case, the property must be secure and ready for occupation, meeting hygiene and safety standards as well as adhering to the state building code. Additionally, a property appraisal and valuation by a licensed appraiser is required to determine its market worth.

Primary Residence

You can’t rent the property you purchase with a USDA loan in Maine, nor use it for business purposes. It must be your primary residence and you must occupy it within 60 days of closing. 

Credit Score

While there are no strict credit score requirements for a USDA loan, the borrower’s credit score should typically be at least 640. People with lower credit scores can still apply and be approved for a USDA loan with manual underwriting. You will need to talk with your lender to see your options.

Applying for a USDA Loan

Getting a USDA loan in Maine is easy and straightforward.


Determine if you meet the basic eligibility requirements for a USDA loan. Once you know how much money you can borrow, you can start looking for properties in rural areas that qualify for a USDA loan. 


Submit a loan application, along with the necessary documentation, to an approved lender like Society Mortgage. As additional requirements, you will need to show proof of employment, income, ID, and tax returns. Your maximum loan amount will be calculated based on factors such as your income, debt-to-income ratio, creditworthiness, and the appraised value of the property, ensuring accessibility while adhering to program regulations.

Lender Approval

Your lender will then approve your loan after verifying your income and credit report, as well as your debt-to-income ratio. Applications for the Single Family Housing Guaranteed Loan Program will go through USDA’s automated Guaranteed Underwriting System (GUS). 


Once you receive approval, you finalize the loan details and you are ready to close the loan and sign the USDA contracts. Once you sign the necessary paperwork you are an owner of property in Maine and another one of the USDA home loans success stories!

Contact Society Mortgage

Society Mortgage is a top mortgage broker company in Maine, dedicated to helping prospective borrowers find the right mortgage and buy a home that is right for their family. We are a mortgage broker company with years of experience in the state of Maine home loans business. 

Interested in finding out more about USDA loans? Contact us today for information on our services and talk to a mortgage Loan Officer. Our Mortgage Society loan specialists have received USDA lender training. We will answer all borrower inquiries and guide you every step of the way until you are a proud homeowner!

Frequently Asked Questions (FAQs)

USDA loans are guaranteed by the United States government and offer benefits, such as no down payment requirements and competitive interest rates. They are geared towards people with low incomes which makes them a particularly attractive option for eligible homebuyers in rural Maine.

While USDA loans typically have lower fees than conventional mortgages, borrowers may still incur certain closing costs, which can vary depending on the lender and the specifics of the loan.

While USDA loans can be used to purchase a variety of property types, including single-family housing, condos, and manufactured homes, there are certain restrictions on property condition and use that borrowers should be aware of.

Low and very low-income families that can’t obtain a loan from a private lender may be eligible for a USDA direct loan, coming with a payment assistance subsidy for a short time. This gives lower-income individuals and families the means to purchase a quality home. For more information, contact your USDA Rural Development laon officer.

Written by: