What are Conventional Loans and Conforming Loans?

By definition, a Conventional Loan is any mortgage that’s not guaranteed or insured by the federal government. Maine conventional loans may be either “conforming” and “non-conforming”, although ‘conventional loans’ generally refer to ‘conforming loans’. Therefore Maine conventional loan limits are the same thing as Maine conforming loan limits.

Maine Conventional Loan Limits

What is the maximum amount that I can borrow?

Conventional loan limits in Maine are determined by:

  • Maine Conventional Loan LimitsMaximum LTV Ratio:  The maximum financing loan-to-value ratio for conventional mortgages is 80% – 97% of the appraised value of the home or its selling price, whichever is lower. Learn how to calculate loan-to-value.
  • Maximum Loan Amount: Conventional loan limits in Maine are set at the floor amount of $424,100 across the entire state. Metro areas in ME with a conforming limit of $424,100 include Bangor, Portland and Augusta.

Search all Conventional Loan Limits in Maine:

County Name
Area
1-Unit
2-Unit
3-Unit
4-Unit
ANDROSCOGGINLEWISTON-AUBURN, ME$424,100$543,000$656,350$815,650
AROOSTOOKNON-METRO$424,100$543,000$656,350$815,650
CUMBERLANDPORTLAND-SOUTH PORTLAND, ME$424,100$543,000$656,350$815,650
FRANKLINNON-METRO$424,100$543,000$656,350$815,650
HANCOCKNON-METRO$424,100$543,000$656,350$815,650
KENNEBECAUGUSTA-WATERVILLE, ME$424,100$543,000$656,350$815,650
KNOXNON-METRO$424,100$543,000$656,350$815,650
LINCOLNNON-METRO$424,100$543,000$656,350$815,650
OXFORDNON-METRO$424,100$543,000$656,350$815,650
PENOBSCOTBANGOR, ME$424,100$543,000$656,350$815,650
PISCATAQUISNON-METRO$424,100$543,000$656,350$815,650
SAGADAHOCPORTLAND-SOUTH PORTLAND, ME$424,100$543,000$656,350$815,650
SOMERSETNON-METRO$424,100$543,000$656,350$815,650
WALDONON-METRO$424,100$543,000$656,350$815,650
WASHINGTONNON-METRO$424,100$543,000$656,350$815,650
YORKPORTLAND-SOUTH PORTLAND, ME$424,100$543,000$656,350$815,650

Maine conforming limits can change anytime. Check back often to ensure accuracy.

What factors determine if i’m eligible for a Conventional Loan in Maine?

Conventional conforming loans follow the terms and conditions set forth by government sponsored enterprises (GSE’s) like Fannie Mae or Freddie Mac. To be eligible for a Conforming Loan in Maine, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income. Your credit background will be considered. A FICO credit score of 620 or above is generally required to obtain a conventional loan approval. You must also have enough income to pay your housing costs plus all additional monthly debt.

How much money will I need for the down payment and closing costs?

ME Conventional Loan Down PaymentConventional home loans require the home buyer to invest between 3% and 20% of the sales price towards the down payment and closing costs. If the sales price is $100,000 for example, the mortgage applicant must invest at least $3,000 – $20,000 to meet conventional mortgage down payment requirements, depending on the program.

Minimum Maine Conventional Loan Down Payment:

Residence UsageFixed-Rate Mortgage (FRM)Adjustable-Rate Mortgage (ARM)
1 Unit Primary3% Down Payment10% Down Payment
2 Units Primary15% Down Payment25% Down Payment
3 Units Primary25% Down Payment35% Down Payment
4 Units Primary25% Down Payment35% Down Payment
1 Unit Second Home10% Down Payment20% Down Payment
1 Unit Investment15% Down Payment25% Down Payment
2 Units Investment25% Down Payment35% Down Payment
3 Units Investment25% Down Payment35% Down Payment
4 Units Investment25% Down Payment35% Down Payment

What property types are allowed for Conventional Conforming Mortgages?

Conventional mortgage guidelines allow you to purchase warrantable condos, planned unit developments, modular homes, manufactured homes, and 1-4 family residences. Conventional loans can be used to finance primary residences, second homes and investment property.

Learn more about conventional mortgages.

What types of mortgage and refinance programs do Conventional Loans offer in Maine?

There are several varieties of standard home purchase, first-time home buyer and conventional refinance loans available in Maine:

  • Conventional Purchase Loans – Conventional loans offer a variety of programs for applicants with good credit ratings to buy a home. Both 3% down mortgage and 5% down mortgage options are available, however 20% down is the minimum amount required to avoid private mortgage insurance.
  • Conventional Rate/Term Refinance: Conventional Rate/Term refinancing loans are for borrowers who currently have an FHA, VA, USDA or conventional fixed rate mortgage or ARM loan and wish to refinance into a conventional mortgage with a lower interest rate. If you’re a homeowners considering a stable, conventional fixed-rate mortgage, this program may also eliminate your mortgage insurance if you have at 20% equity in your home.  If not, Conventional 97% loan programs may also work for you.
  • Cash-Out Refinance: A Conventional Cash Out Refinance is perfect for the homeowner who wants to access the equity that they have built up in their home. This program is beneficial to homeowners whose property has increased in value since it was purchased.

What factors determine if I am eligible for a Conventional Refinance Loan?

To meet conventional refinance mortgage requirements in Maine, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income. Your credit background will be considered. You must be able to cover closing costs and have enough income to pay your monthly debt.

Conventional Loan Requirements

More Maine Mortgage Limits

You may also want to visit these additional home loan resources before deciding on a mortgage program:

Maine conventional conforming loan limits are set at the floor amount of $417,000 across the entire state. Metro areas in ME with a $417,000 limit  You may also want to visit these additional conventional loan resources before deciding on a mortgage:

The chart below contains maximum conforming loan limits across Maine. These figures reflect both Fannie Mae loan limits and Freddie Mac loan limits. Conforming limits can change on short notice so check back often to ensure accuracy.

Maine Conforming Loan Limits

 

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