
Here’s What You Need to Make to Afford to Buy a Home in Maine
30Buying a home in Maine has been both a goal and a challenge for many for the last several years. Low inventory, high interest rates… yup, we know all about it. While early signs are pointing towards a slightly more balanced market in the months to come, the ease of home buyers is projected to be minimal – at least for this year.
It might not be as affordable as it once was, but people are still going for the gold and making the necessary changes and sacrifices. As a realtor, I always advise my clients—based on what’s holding them back from getting pre-approved for a loan—to consider a few options: improving their credit score, saving up more money, or even picking up a part-time job if their schedule allows it.
Let’s break it down: To afford a home without living on Ramen every night, mortgage lenders generally recommend keeping your housing costs around 36% of your income. So, what does that look like here in Maine?
According to Zillow, the median home price in Maine is around $395,520. Depending on your loan type, there are different down payment options, but for an example, let's use 3.5% as a down payment on a $395,520 home. These are the approximate numbers you are looking at.
- Down Payment: $13,843.20
- Monthly Mortgage Payment (including taxes and insurance): Approximately $2,539.31
- Annual Income Needed (to keep housing costs at 36% of your income): Around $84,644
The bottom line is Maine's salaries don’t always keep pace with its rising home prices. So, if you’re dreaming of owning your own home, you may need to hustle harder, save smarter or snag yourself a part time gig. Keep your eye on the prize!
2023 Highest Paid State of Maine Employes
2023 Highest Paid State of Maine Employes