Down Payment Assistance Grant Programs | Katahdin Trust (Houlton, ME)

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Down Payment Assistance

Turn "Someday" into Today

Let’s face it, buying a first home is not only challenging financially but can be really nerve-racking. With rising home prices, high down-payment requirements and upfront closing costs, Katahdin Trust recognizes how difficult entering the housing market can be for some buyers. That's why we'll be there with you every step of the way.

Need a hand with the down payment? We can help!

We partner with the Federal Home Loan Bank of Boston (FHLBank Boston) to provide down payment assistance programs for eligible borrowers. Since each program has unique qualifications and guidelines, we're committed to working directly with you to explore the best options for your situation.

Our goal is to make your application process as simple and seamless as possible. Get started with our easy-to-follow checklist today!

Funds for 2025 are now available.

Compare Homeownership Assistance Programs

Each program provides grants to help eligible borrowers with down payments, closing costs, homebuyer education, and counseling fees. Additionally, funds can be used to reduce the mortgage interest rate by up to 2 percent/points.

 Equity Builder Program (EBP)Housing Our Workforce (HOW)Lift Up Homeownership (LUH)

Maximum Grant per Household

up to $25,000 

up to $25,000 

up to $50,000

Income Limit (% of the area median income)

up to 80%

above 80% and up to 120%

up to 120%

First-time Homebuyer

Required

 Not Required Required

Minimum Down Payment (homebuyer's own funds)

$500 

$2,000 

 $1,000

First-time homebuyer education and counseling

Required

Required

 Required

All loans are subject to credit approval. Property insurance is required. Programs are offered for a limited time and funds are awarded on a first-come, first-served basis — not guaranteed or reserved in advance. Income limits are based on the buyer's future address of their new home. For owner-occupied primary residence only. Home purchase price limits are based on the Average Area Purchase Prices for Mortgage Revenue Bonds from 26 CFR § 6a.103A: Qualified mortgage bonds, which are also revised annually. For 2025, the program will utilize Rev. Proc. 2024-21. Interest would not accrue on the grant and the grant is forgivable after five years from the date of the loan closing on your primary residence. Member of and funded by FHLBank Boston.

Ready to Get Started?

Apply online or call your local branch to speak with a local mortgage specialist.

Apply Online Loan Application Checklist Find a Location

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Conforming Loan Payment Notice. 

All loan payments to Katahdin Trust must be accompanied by either an account number, payment notice or payment coupon provided. Mailed payments must be sent to Katahdin Trust, PO Box 36, Houlton, ME 04730. Loan payments may also be made in person to Katahdin Trust personnel at any of our branch locations. Payments must be received by 6:00 pm Eastern Time, Monday through Friday (except bank holidays) to be credited as of that date. All other payments received will be credited as of the next business day or as otherwise permitted by law.
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