Buying a house in Maine is not very different from buying one anywhere else, but a few things catch out-of-state buyers off guard: property taxes that vary a lot from town to town, private wells and septic systems, heating costs, and a state housing agency with real help for first-time buyers. This guide walks through the steps, the Maine-specific costs, and what to check before you make an offer.
We are not lawyers, lenders or real estate agents, and nothing here is legal or financial advice. We point to official sources throughout so you can confirm the details that matter to your situation. Figures are as of October 2026 and can change.
The Short Version
- Get pre-approved first, so you know your budget including taxes and insurance.
- First-time buyers can look at MaineHousing’s First Home Loan, which requires a minimum credit score of 640 and has income and price limits.
- Maine’s real estate transfer tax is $2.20 per $500 of value, split between buyer and seller.
- Property taxes vary by town, and the homestead exemption can lower yours if the house is your permanent home.
- Put an inspection contingency in your offer, and test the water and check the septic system if the house has them.
The Steps to Buying a House in Maine
- Set a budget and check your credit. Count the mortgage payment, mortgage insurance, homeowners insurance and property taxes, plus a cushion for surprises.
- Get pre-approved. A lender confirms what you can afford. If you may qualify for MaineHousing’s program, use one of its approved First Home Lenders.
- Find a local agent. Pick someone who knows the town you are targeting, since taxes, roads and services differ so much from one town to the next.
- Make an offer with an inspection contingency. Once your offer is accepted, it becomes a Purchase and Sale Agreement that states the down payment, loan amount, financing terms and closing timeframe.
- Inspect and insure. Get the home inspection, line up homeowners insurance (the first year’s premium is paid before closing), and consider an owner’s title insurance policy, since the lender’s policy protects only the lender.
- Close. Review your Closing Disclosure three days before closing and compare it to your Loan Estimate. You have the right to a walk-through 24 hours before closing.
- Plan for after closing. MaineHousing suggests setting aside about 1 percent of the purchase price each year for maintenance and keeping three to six months of living expenses in reserve.
These steps follow MaineHousing’s own steps to homeownership.
First-Time Buyer Help From MaineHousing
MaineHousing is the state’s housing agency, and its First Home Loan Program offers low fixed-rate mortgages and help with closing costs. Here is how it works:
- Who counts as a first-time buyer: someone who has not owned a principal home in the past three years, so some former owners still qualify.
- Credit score: a minimum of 640, along with an acceptable credit history.
- Limits: household income limits and purchase price limits apply, and they vary by household size and location. See MaineHousing’s income and cost limits chart.
- Advantage grant: up to $5,000 toward closing costs, which requires a hoMEworks-approved homebuyer education class and a minimum contribution of 1 percent of the loan.
- First Generation Program: up to $10,000 for buyers who have never lived in a home owned by their parents or guardians, or who were in foster care as children.
- Property types: single-family homes, two- to four-unit homes, condos and manufactured homes.
- Lenders: loans are available only through MaineHousing-approved First Home Lenders.
If you put down less than 20 percent, MaineHousing says its mortgage can be paired with an FHA, Rural Development or VA guaranty, or with an approved private mortgage insurer, so little or no down payment may be required.
Costs Beyond the Price: Maine’s Transfer Tax
Maine charges a real estate transfer tax of $2.20 for each $500 of the property’s value (or fraction of $500). The tax is split evenly between the seller and the buyer, and the county or regional register of deeds collects it.
For example, on a $400,000 house the total tax comes to $1,760, so the buyer’s half is $880. For transfers on or after November 1, 2025, an extra $3.80 per $500 applies to the value above $1 million. Some transfers are exempt, so ask your closing professional what applies to yours.
Beyond the transfer tax, expect the usual lender, appraisal, title and legal fees. Your lender’s Loan Estimate lists them, and the Closing Disclosure shows the final numbers.
Property Taxes and the Homestead Exemption
Property tax rates in Maine are set town by town, so two similar houses a few miles apart can have very different tax bills. Before you fall in love with a house, ask the town for its current tax rate (usually expressed as a mill rate, which is dollars of tax per $1,000 of assessed value) and have your agent estimate the annual bill.
Maine’s homestead exemption can lower that bill. It reduces the taxable value of your home by up to $25,000, adjusted by the town’s certified ratio. To qualify, the house must be your permanent residence, and you must have owned a home in Maine for the twelve months before you apply. You file with your town by April 1, and once it is approved it continues without reapplying while you own and live in the home. Camps, vacation homes and second residences do not qualify. Maine Revenue Services’ page does not date the $25,000 figure, so confirm the current amount with your town.
What to Check Before You Make an Offer
- Well and septic. Many Maine homes have a private well and a septic system. MaineHousing recommends testing well water every year for bacteria and nitrates, and a buyer should have the septic system inspected as part of the purchase.
- Heating costs. Maine homes are heated with oil, propane, wood, electricity or heat pumps. Ask the seller for the past year’s heating bills, since this can be one of the biggest costs of ownership.
- The road. Find out whether the road is public, private or run by an association, and who plows it in winter.
- Flood zones. If the house is near the coast or a river, check the flood zone and get a quote for flood insurance.
- Seasonal or year-round. A camp or cottage may not be insulated or winterized, may have seasonal water, and will not qualify for the homestead exemption.
If you are new to Maine winters, our first winter checklist covers what a house needs to get through one.
Buying From Out of State
Many buyers in Maine come from other states, and a few habits help. Visit in winter or in mud season if you can, not only in summer. Hire a local inspector and a local agent, because they know the town’s quirks. Check cell and internet coverage at the address, especially in rural areas. And if you are not sure, consider renting for a few months first.
Where to Start: Picking a Town
The town you choose affects your taxes, commute and lifestyle as much as the house does. Start with our guide to Maine’s cities and biggest towns, compare the cost of living by city, and read our overview of moving to Maine. For prices and trends, see our Maine housing market guide, and for a sense of the weather side of things, our look at whether Maine is a climate haven.
Buying a House in Maine FAQ
Can you buy a house in Maine if you live in another state?
Yes. Anyone can buy property in Maine, though the homestead exemption is only for permanent residents who own and live in the home.
What credit score do you need to buy a house in Maine?
MaineHousing’s First Home Loan requires a minimum score of 640. Other lenders set their own requirements.
Do you need 20 percent down?
Not necessarily. MaineHousing says its mortgage can be combined with an FHA, Rural Development or VA guaranty or private mortgage insurance, so little or no down payment may be required. Ask a lender what you qualify for.
How much is the Maine transfer tax?
$2.20 for every $500 of the property’s value, split between the buyer and the seller. On a $400,000 house, that is $880 for each side.
Is there help for first-time home buyers in Maine?
Yes. MaineHousing’s First Home Loan Program offers low fixed-rate mortgages and grants of up to $5,000 for closing costs, with up to $10,000 through its First Generation Program for eligible buyers. Income and price limits apply.
When should you test a private well?
Before you close, and then once a year. MaineHousing recommends testing for bacteria and nitrates annually.