# Maine mortgages: the shared transfer tax, MaineHousing loans and the homestead exemption

> Maine mortgage numbers: a 0.44% transfer tax split by buyer and seller, MaineHousing help up to $10,000 and a $25,000 homestead exemption.

URL: https://mail.mortgage-math-us.com/location/maine/  
Last reviewed: 2026-10-29 · By the MortgageMath US Editorial team

## Quick answer

The median Maine home is worth $341,900 and costs about **$2,650 a month** with 10% down at the 7.24% national average rate, including property tax at 0.91% of value. Maine’s 0.44% transfer tax is split between buyer and seller — about $752 each on that home. MaineHousing’s First Home Loan comes with up to $5,000 through Advantage, or $10,000 for first-generation buyers, and the homestead exemption takes up to $25,000 off your home’s taxable value.

## Key facts

| Fact | Value | Source | As of |
|---|---|---|---|
| Median home value in Maine | $341,900 | [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25077?g=040XX00US23) | 2024 ACS 1-year |
| Homes lived in by their owners | 73.3% | [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25003?g=040XX00US23) | 2024 ACS 1-year |
| Effective property tax rate | 0.91% | [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25103?g=040XX00US23) | 2024 ACS 1-year |
| Transfer tax (split buyer and seller) | 0.44% | [Maine Revenue Services](https://www.maine.gov/revenue/taxes/property-tax/transfer-tax) | Oct 28, 2026 |
| MaineHousing Advantage, up to | $5,000 | [MaineHousing: First Home Loan Program](https://www.mainehousing.org/programs-services/homebuyer/homebuyerdetail/first-home-loan-program) | Oct 29, 2026 |
| First Generation assistance | $10,000 | [MaineHousing: First Generation Program](https://www.mainehousing.org/programs-services/homebuyer/homebuyerdetail/first-generation-program) | Oct 29, 2026 |
| Homestead exemption, up to | $25,000 | [Maine Revenue Services: Homestead Exemption Program FAQ](https://www.maine.gov/revenue/faq/homestead-exemption-program) | Oct 29, 2026 |

## Maine’s transfer tax, split between buyer and seller

Maine’s real estate transfer tax is 0.44% of the price, and the law splits it equally: half from the buyer, half from the seller. As a buyer, budget for your share rather than assuming the seller covers it.

> **Worked example: Transfer tax on the median Maine home ($341,900)**
>
> Total tax: $1,504 → buyer’s half **$752**, seller’s half $752.

The buyer’s half sits alongside lender fees, title insurance, recording fees, prepaid interest and escrow deposits. The CFPB’s typical range of 2%–5% of the price works out to $6,838–$17,095 on the median home. The [closing cost calculator](https://mail.mortgage-math-us.com/tools/closing-cost-calculator/?state=ME) applies Maine’s split for you.

## MaineHousing First Home Loan and Advantage

MaineHousing’s First Home Loan Program offers fixed-rate mortgages through participating lenders, with or without discount points, combined with FHA, USDA Rural Development or VA backing or private mortgage insurance. You qualify if you have not held an ownership interest in your principal home within the past 3 years, have a credit score of at least 640 and fit the income and purchase price limits for your area — limits most Maine households and homes meet, according to MaineHousing.

**Advantage** adds up to $5,000 toward the down payment and closing costs. You put in at least 1% of the loan amount yourself (the homebuyer class fee counts) and complete a hoMEworks-approved homebuyer class before closing.

> **Worked example: FHA First Home Loan with Advantage on the median $341,900 home**
>
> The 3.5% FHA down payment is $11,967. Advantage covers $5,000, your required 1% contribution on the $329,934 loan is $3,299, and the remaining $3,667 also comes from you (or other help).

## First Generation and SaluteME

Two MaineHousing options target specific buyers:

- **First Generation** provides $10,000 toward the cash needed to close for buyers who have never owned a home and never lived in a home owned by their parents or guardians, or who spent time in foster care. You take a financial literacy class and a homebuyer education class first, meet the same 640 score minimum and contribute 1% of the loan.
- **SaluteME** cuts the rate on a 30-year First Home Loan by 0.5% for active duty, veteran and retired military buyers. On a $307,710 loan, a cut of that size from today’s national average would lower principal and interest by about $103 a month — $1,239 a year. MaineHousing’s own rates differ from the national average, so ask a lender for the actual figures.

Veterans can also compare a [VA loan](https://mail.mortgage-math-us.com/loan-types/va-loans/), and every buyer can use the [first-time buyer programs guide](https://mail.mortgage-math-us.com/first-time-buyers/programs/) to line these up against other help.

## Maine’s homestead exemption

If you have owned a home in Maine for the past 12 months and it is your permanent residence, your town takes up to $25,000 off its taxable value. The amount is scaled by the town’s certified ratio — in a town at 80%, the exemption is $20,000. At the statewide effective rate, the full exemption is worth roughly $228 a year; your town’s rate decides the real figure.

> **Tip: Apply with your town by April 1**
>
> File the application with the municipality where the home is on or before April 1; later filings count for the next year. You don’t need to reapply each year while ownership and residency stay the same. If you just moved to Maine, you qualify once you reach the ownership period above.

Maine’s effective property tax rate of 0.91% is slightly above the national ratio of 0.89% — the 22nd-highest of the 50 states and DC.

## Owning in Maine: the monthly cost

Maine’s owner share is the 4th-highest in the country: 73.3% of occupied homes are lived in by their owners. The median home value is below the US median and the median household income of $76,442 is below the national figure.

> **Worked example: $341,900 home (Maine’s median value), 10% down, 30-year fixed at 7.24%**
>
> | Part of the payment | Monthly |
> |---|---:|
> | Principal and interest on $307,710 | $2,097 |
> | Property tax at 0.91% a year | $259 |
> | Homeowners insurance at $4.90 per $1,000 (Freddie Mac national average) | $140 |
> | PMI (midpoint of Freddie Mac’s range) | $154 |
> | **Total** | **$2,650** |

Under Freddie Mac’s 30% guideline, the median income supports about **$247,000** with 10% down — $94,900 below the median value. Owning the median home on these terms takes about $106,000 a year. Maine’s housing stock is the 19th-oldest by median build year (1978), so have heating systems, roofs and insulation inspected with care. Run your numbers in the [payment calculator](https://mail.mortgage-math-us.com/tools/mortgage-payment-calculator/?price=342000&down=10&tax=0.91&state=ME), the [affordability calculator](https://mail.mortgage-math-us.com/tools/affordability-calculator/?state=ME&income=76442) or the [rent vs buy calculator](https://mail.mortgage-math-us.com/tools/rent-vs-buy-calculator/?state=ME&price=342000&rent=1210).

## Frequently asked questions

### Who pays the transfer tax in Maine?

Both sides. Maine’s transfer tax is 0.44% of the price, split equally between buyer and seller — about $752 each on the median $341,900 home.

### What is the homestead exemption in Maine?

Up to $25,000 of your home’s value, scaled by your town’s certified ratio, if it is your permanent residence and you have owned a home in Maine for the past 12 months. Apply with your town by April 1.

### Does MaineHousing offer down payment assistance?

Yes. Advantage gives First Home Loan borrowers up to $5,000 toward the down payment and closing costs, with a 1% borrower contribution and a homebuyer class.

### What is MaineHousing’s First Generation program?

It provides $10,000 toward closing for buyers who have never owned a home and never lived in a home owned by their parents or guardians, or who were in foster care as children.

### What credit score do I need for a MaineHousing loan?

The First Home Loan Program requires a minimum credit score of 640, including with Advantage and First Generation assistance.

### What is the property tax rate in Maine?

Census data put the median Maine homeowner’s bill at $3,103 a year, about 0.91% of median home value, compared with 0.89% nationally.

## Sources

- [Freddie Mac Primary Mortgage Market Survey](https://www.freddiemac.com/pmms) — 30-year fixed rate, national weekly average (Week of Oct 29, 2026)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25077?g=040XX00US23) — Median value of owner-occupied homes (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B19013?g=040XX00US23) — Median household income (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25103?g=040XX00US23) — Effective property tax rate (median taxes ÷ median home value); Median real estate taxes paid by homeowners (2024 ACS 1-year)
- [Freddie Mac Research](https://www.freddiemac.com/research/insight/homeowners-insurance-costs) — Average homeowners insurance premium per $1,000 of home value (2023 data)
- [Freddie Mac My Home](https://myhome.freddiemac.com/buying/breaking-down-pmi) — Typical PMI cost, low end; Typical PMI cost, high end (Oct 28, 2026)
- [Freddie Mac My Home](https://myhome.freddiemac.com/blog/homebuying/how-much-can-you-afford) — Freddie Mac guidance: housing costs below this share of gross income (Jan 22, 2026)
- [CFPB](https://www.consumerfinance.gov/owning-a-home/prepare/figure-out-how-much-you-want-to-spend/) — Typical closing costs, low end (share of purchase price); Typical closing costs, high end (share of purchase price); Minimum FHA down payment (Oct 28, 2026)
- [MaineHousing: First Home Loan Program](https://www.mainehousing.org/programs-services/homebuyer/homebuyerdetail/first-home-loan-program) — MaineHousing First Home Advantage down payment and closing cost assistance, up to; MaineHousing Advantage: minimum borrower contribution (share of the loan); MaineHousing SaluteME rate discount on a 30-year First Home Loan (active duty, veterans, retired military) (Oct 29, 2026)
- [MaineHousing: First Generation Program](https://www.mainehousing.org/programs-services/homebuyer/homebuyerdetail/first-generation-program) — MaineHousing First Generation program assistance (Oct 29, 2026)
- [Maine Revenue Services: Homestead Exemption Program FAQ](https://www.maine.gov/revenue/faq/homestead-exemption-program) — Maine homestead exemption, up to (scaled by the town’s certified ratio); Maine homestead exemption: owned a home in Maine for at least the past (Oct 29, 2026)
- [Maine Revenue Services](https://www.maine.gov/revenue/taxes/property-tax/transfer-tax) — State real estate transfer tax (Oct 28, 2026)
- [42 U.S.C. 12704(14)](https://www.law.cornell.edu/uscode/text/42/12704) — First-time homebuyer: has not owned a home in the past (HUD/HOME statute) (Oct 28, 2026)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25103?g=010XX00US) — Effective property tax rate (median taxes ÷ median home value) (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25003?g=040XX00US23) — Share of occupied homes lived in by their owners (2024 ACS 1-year)
- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25035?g=040XX00US23) — Median year homes were built (2024 ACS 1-year)
- [MaineHousing: First Home Loan Program](https://www.mainehousing.org/programs-services/homebuyer/homebuyerdetail/first-home-loan-program)
- [MaineHousing: First Generation Program](https://www.mainehousing.org/programs-services/homebuyer/homebuyerdetail/first-generation-program)
- [Maine Revenue Services: Homestead Exemption Program FAQ](https://www.maine.gov/revenue/faq/homestead-exemption-program)

_General information, not financial advice._