FHA Loans in Maine: A Higher Limit Around Portland and a Transfer Tax the Law Splits in Half

A home in Portland and a home in Bangor are in the same state and get different FHA loan limits. Portland is in the Portland-South Portland metro, where HUD sets a higher limit, and Bangor is in a county at the national floor.

FHA's 2026 loan limit in Maine is $615,250 for a one-unit home in Cumberland, Sagadahoc and York counties and $541,287 in the other 13 counties.

I'm Jeff Moran, NMLS #483943, licensed to originate mortgages in Maine through C2 Financial Corporation.

What are the FHA loan limits in Maine?

HUD's Mortgagee Letter 2025-23 sets the 2026 limits for loans whose case numbers are assigned on or after January 1, 2026. HUD's county file lists the Portland metro as the only high-cost area in Maine's 16 counties.

Where	One unit	Two units	Three units	Four units
Cumberland, Sagadahoc and York counties	$615,250	$787,650	$952,050	$1,183,200
The other 13 Maine counties	$541,287	$693,050	$837,700	$1,041,125

The floor is the lowest FHA limit the program sets anywhere. The Portland page covers the three high-cost counties, and the Bangor page and the Augusta and Waterville page cover two that are at the floor.

Maine splits the transfer tax down the middle

Maine charges a transfer tax on each deed, and under 36 M.R.S. § 4641-A the seller owes half and the buyer owes half. Most states leave that question to custom or the contract. In Maine your half is a known cost before you write an offer. The Maine page goes through it, and the buyer and seller can agree in the contract to split it differently.

Your half is part of the cash you bring to closing. That cash is your minimum down payment of at least 3.5 percent of the value, plus the closing costs you pay. FHA lets a seller or other party with an interest in the sale contribute up to 6 percent of the sales price toward your closing costs, prepaid items, discount points and the upfront premium. None of that money can count toward the 3.5 percent. Whether a seller offers it is a negotiation, and seller extras under FHA shows what the handbook allows.

Maine has no general tax on recording a mortgage. An ordinary refinance records a new mortgage without transferring a deed, so the deed tax does not apply to it.

The spouse's signature in Maine

The FHA handbook says that when state law makes a spouse's signature necessary for a valid first lien, the lender must have a spouse who is not on the loan sign the mortgage or a document giving up rights to the property. Maine law answers that for most mortgages. 33 M.R.S. § 480 says an owner may mortgage real estate without the signature of a spouse who does not own it, and a mortgage needs no such signature when it secures actual consideration given in good faith by the lender.

A spouse who is on title still signs. The statute names two exceptions: a transfer that falls under Title 18-C section 2-208(1), and a recorded divorce claim that is pending or has been awarded an interest in the property.

Maine is also not on the IRS's list of community property states in Publication 555. FHA has a rule that pulls a credit report on a spouse who is not on the loan and counts that spouse's debts. It is triggered when you live in a community property state or the property is in one, so a Maine property does not trigger it on its own. How each state treats the spouse's signature compares them all.

Closing in Maine with an FHA loan

Maine does not require a lawyer at closing. State law lets a settlement company conduct the closing and disburse the proceeds, while legal advice remains a lawyer's work. No Maine statute or regulator assigns the owner's title policy to the buyer or the seller, so the purchase contract should say who pays it. Title premiums can differ by insurer because each files its own rates.

Maine has allowed remote and electronic notarization since July 1, 2023, and under added conditions the signer may be outside Maine and even outside the United States. Your lender, the title insurer and the county registry of deeds each have to accept it, so whether you can close remotely is decided file by file.

The rest of FHA, in one paragraph

The FHA explainer has the general mechanics. A purchase can be financed up to 96.5 percent of the value, and the upfront premium is 1.75 percent of the base loan amount. FHA works from the middle of your three credit scores. At 580 or higher you are eligible for maximum financing, and from 500 to 579 the loan is limited to 90 percent.

Where to start

When you're ready, you can see FHA priced for your Maine scenario. What a pre-approval involves covers the letter, and how debt-to-income is figured covers the ratio. VA loans in Maine are covered on their own page.

Nothing here is a loan approval, a denial, a commitment to lend, or legal advice. The loan limits are HUD's published 2026 figures.

Common questions

Is the FHA loan limit the same across Maine?

No. Cumberland, Sagadahoc and York counties carry a higher 2026 limit than the other 13 counties because HUD treats the Portland metro as a high-cost area. Within each group the limit rises with the number of units.

Who pays the transfer tax on a Maine FHA purchase?

Maine law splits it, half to the seller and half to the buyer, under 36 M.R.S. § 4641-A. The buyer and seller can agree in the contract to split it differently, and the statute is the starting point.

Does a Maine FHA refinance owe transfer tax?

No. An ordinary refinance records a new mortgage and does not transfer a deed, so the deed tax is not triggered. Maine also has no general mortgage recording tax.

Does my spouse have to sign my FHA mortgage in Maine?

Not when your spouse does not own the property. Maine law says a mortgage securing actual consideration given in good faith by the lender needs no signature from a spouse who does not own it, with two narrow exceptions. A spouse who is on title does sign.

Can I close on a Maine home with an FHA loan from another country?

Sometimes. Maine allows the signer to be outside the United States under additional conditions, but your lender, the title insurer and the registry of deeds each have to accept the method, so it helps to ask early.