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

Portland is in the only part of Maine that HUD counts as a high-cost housing area. That puts a home in Portland, South Portland or anywhere else in Cumberland, Sagadahoc and York counties under a higher FHA loan limit than a home in Bangor, Augusta or the other thirteen counties.

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 follows is the Maine side. If you are new to FHA, the FHA loans page covers the program in full, and which mortgage fits you puts it next to conventional and VA.

What are the FHA loan limits in Maine?

Maine has 16 counties, and HUD's county list treats the Portland metro, meaning Cumberland, Sagadahoc and York, as the only high-cost area among them. HUD's 2026 loan limit letter sets these 2026 limits.

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 lower row is the national floor. If you are looking around Portland, the Portland page covers the three high-cost counties. The Bangor page and the Augusta and Waterville page cover two areas at the floor.

Your spouse and a Maine mortgage

FHA has a rule for states where the lender needs a spouse's signature to hold a valid first lien, meaning its first claim on the home if the loan is not paid. In those states a spouse who is not on the loan has to sign either the mortgage or a document giving up rights to the home. In Maine, a spouse who is not on the title usually does not have to sign the mortgage. The statute lists a couple of exceptions, such as a divorce claim recorded against the home, and 33 M.R.S. § 480 has the exact wording. If your spouse is on the title, your spouse signs.

Maine is also not on the IRS's list of community property states, so a Maine home by itself does not put your spouse's debts into your ratios. How each state treats the spouse's signature compares all of them.

The transfer tax, half and half

Maine charges a transfer tax every time a deed changes hands, and Maine's transfer tax law, 36 M.R.S. § 4641-A, splits it: the seller pays half and you pay half. That means you can put your half into your budget before you write an offer. You and the seller are still free to agree in the contract to split it differently, and I'd like you to see your half alongside your down payment and the rest of your closing costs early on.

Your cash to close is your down payment of at least 3.5 percent of the value, your half of the transfer tax, and the other closing costs you pay. The seller, or anyone else with a stake in the sale, can contribute up to 6 percent of the sales price toward your closing costs and the upfront mortgage insurance premium. None of that contribution can go toward the 3.5 percent down payment. Whether the seller offers it is part of the 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 and no deed changes hands, so the transfer tax does not come up on a refinance.

Closing on a Maine home

You do not need a lawyer to close in Maine. A settlement company can run the closing and pay out the money, though if you want legal advice that is still a lawyer's job.

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

Seeing it with your own figures

When you're ready, you can see FHA priced for your own Maine scenario, with your half of the transfer tax alongside the rest of your cash to close.

Common questions

Is the FHA loan limit the same across Maine?

No. Cumberland, Sagadahoc and York counties get a higher 2026 limit than the other 13 because HUD treats the Portland metro as a high-cost area, and 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 you. The two of you can agree in the purchase contract to divide it differently.

Does a Maine FHA refinance owe transfer tax?

No. A refinance records a new mortgage and no deed changes hands, so the transfer tax does not apply, and Maine has no general mortgage recording tax either.

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

Usually not, if your spouse is not on the title. Maine law has a couple of exceptions, such as a divorce claim recorded against the home. A spouse who is on the 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 added conditions, and your lender, the title insurer and the registry of deeds each have to accept the method, so that gets settled on your file.

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