Best Mortgage Lenders in Maine

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Contributor, Benzinga
October 25, 2021

Maine has a beauty that’s all its own. The coastal capital of Portland, Moosehead Lake and the rocky headlands of Acadia National Park offer residents and visitors stunning views. Natural beauty combined with small-town living and an average cost of living make Maine a great state to call home. 

If you’re ready to buy, the first thing you need to do is find a great lender. Here’s our guide to finding the best mortgage lenders in Maine. 

Quick Look: Best Mortgage Companies in Maine

The 4 Best Mortgage Companies in Maine

It can be hard to know where to start when you’re searching for a lender. Here are our picks for some of the best mortgage lenders in Maine. 

1. Best for Bank Statement Loans: Angel Oak Mortgage Solutions

Angel Oak Mortgage Solutions is a full-service mortgage lender offering traditional and portfolio mortgage loans. Among their many customized loan solutions is their Bank Statement product for self-employed borrowers across Maine. This loan does not require tax returns and includes a 1099 Income option for 1099 earners. 

  • Loan amounts up to $3 million
  • 12 or 24 months personal or business bank statements
  • Two years out of bankruptcy, short sale, foreclosure, or deed-in-lieu
  • Owner occupied, non-owner occupied, second homes in Maine
  • 1099 option available
  • 40-year fixed interest only
  • Delayed financing available
  • Non-warrantable condos allowed

Angel Oak Mortgage Solutions offers a wide range of loan options allowing you to obtain any mortgage as long as qualification requirements are met. Mainers can also refinance into any of these loans at any time to control costs, lower interest rates and save money. The customer service team is easy to reach via email, phone or the online contact form, and you can begin your journey by searching for a local advisor right on the website.

Angel Oak Mortgage Solutions is headquartered in Atlanta, Georgia and is licensed in AL, AZ #0927070, licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act, CO, CT, DE, DC, FL, GA #32379, ID, IL, IN, IA, KS, KY, LA, ME, MD, MI, MN, MS, NV, NH, licensed by the N.J. Department of Banking and Insurance, NM, NC, OH, OK, OR, PA, Rhode Island Licensed Lender, SC, TN, TX, UT, VT, VA, WA dba AOHL LLC, WI.

2. Best Online Lender: Quicken Loans®

Quicken Loans offers Maine residents a digital mortgage experience through its Rocket Mortgage® by Quicken Loans® platform. It streamlines the mortgage process by syncing with your bank account to get accurate numbers. 

The platform shows you a variety of mortgage options that might meet your needs. The YOURgage® program allows you to choose a custom mortgage term. 

Quicken Loans has award-winning customer service, and you can reach its experts by chat or by phone. 

3. Best for VA Loans: Veterans United

Lots of lenders offer VA loans, but not every lender specializes in them. Veterans United has been the top lender for VA purchase loans for 4 straight years. 

Veterans United focuses exclusively on VA loans and understands the unique needs of service members, veterans and military families. It has representatives available 24/7 to answer your questions and walk you through the mortgage process. 

Veterans United gets outstanding reviews from its borrowers.

Mortgages Explained

As you look for the right lender, it’s also essential to find the right mortgage. Here are a few of the terms you need to know to help you navigate that decision.

Mortgage Type

Your mortgage type refers to who regulates and insures your mortgage. These are the most common types. 

  • Conventional mortgages aren’t part of a government program or insured by a government agency. This means that they may have more stringent requirements than government-backed mortgages. They might require a higher credit score or a higher down payment.

  • FHA loans are backed by the Federal Housing Administration. Private lenders offer these loans, which have low credit score and down payment requirements. If you have a credit score of 580 or higher, you may be offered the option of a down payment as low as 3.5%.

  • VA loans, backed by the Veterans Administration, are available to qualifying service members, veterans and some surviving spouses. These loans are offered by private lenders and have no down payment requirement. They also have no minimum credit score requirement, but lenders do review your income and credit history to ensure that the mortgage is a good fit. 

Mortgage Term

Your mortgage term refers to how lenders structure the repayment of your home loan. Here are a few common mortgage terms. 

  • 30-year fixed mortgages mean lenders use a 30-year payment schedule to determine your payments. Assuming you don’t make any extra payments, your loan will be paid in full in 30 years. The fixed rate means your interest rate is always the same. This means your monthly payments stay the same as well.

  • 15-year fixed rates schedule your payments over 15 years. This means you have higher monthly payments than you would with a 30-year mortgage. Since it’s a fixed-rate mortgage, the interest rate and monthly payments stay the same until you pay off the mortgage or sell or refinance your home.

  • 5/1 adjustable-rate mortgages (ARMs) have an interest rate that the lender can change. These mortgages start with an introductory fixed rate. A 5/1 ARM has a fixed rate for 5 years. After that, the lender can change the interest rate annually. This means that after the introductory period, your monthly payment can increase or decrease annually. 

Which Mortgage Lender is Best for You?

What should you look for in a Maine mortgage lender? Here are a few qualities to consider.

  • Reputation: What kind of reviews does the lender have? Do you have friends or family who have worked with that lender? You can also check out the Better Business Bureau to see if the lender has had complaints and how it has handled those complaints.

  • Service: Do you have a consistent point of contact? How do you get in touch with someone if you have a question? Can you talk to someone via chat? Think about the kind of service you prefer and whether the lender offers that support.

  • Experience: How long has the lender been in business? A lender that has been around for a while knows the ups and downs of the housing market and has stood the test of time.

  • Options: Some lenders specialize in a specific type of mortgage. Others offer a wider range of mortgages. Consider the type of mortgage, how it might work for you and whether the lender offers that mortgage. 

Lender Credit Score Minimums in Maine

Your credit score is a 3-digit number that lenders use to get a sense of how you handle credit and debt. Lenders use your credit score to help decide what interest rate to offer you. They also have minimum scores for borrowers.

If you’re below the minimum, you might need to take some time to improve your score before you can get a mortgage. Here are the minimum credit scores for some of Maine’s lenders. 

Current Mortgage Rates in Maine

Lenders change their mortgage rates frequently. Some change them daily. They make these changes to reflect changes in the housing market and the economy. When the economy is booming, interest rates tend to be higher because there’s more competition for loans. When the economy dips, interest rates tend to drop to encourage consumers to take out home loans. 

Given these frequent changes, Benzinga regularly updates rates so you can always make an informed decision. Here are the current mortgage rates in Maine. 

Loan TypeRateAPR
30-year fixed N/A N/A
15-year fixed N/A N/A
7/1 ARM (adjustable rate) N/A N/A
5/1 ARM (adjustable rate) N/A N/A
Rates based on an average home price of $225,000 and a down payment of 20%.
See more mortgage rates on Zillow

Average Days to Close on a Loan

The closing process is the time between the submission of your formal application and the signing of final documents. This time can last a few weeks or more because the process is involved.

The lender needs to verify all your financial information. It also may order an appraisal, which is an independent assessment of the value of your potential home. You will likely have a home inspection done so you don’t experience any surprises. 

Your lender will reach out to you with a decision. Once you are approved, a closing meeting will be scheduled. At the meeting, you’ll sign your documents and pay any funds due for down payment and closing costs.

The length of this process varies by lender. Here are the average days to close for several of Maine’s lenders.

Which Lender is Right for You?

The best mortgage lender for you ultimately depends on your goals, needs and more. An experienced lender can help you discuss your options and help you decide which type of mortgage is best for you. 

Get Ready for Take Off

Rocket Mortgage® is an online mortgage experience developed by the firm formerly known as Quicken Loans®, America’s largest mortgage lender. Rocket Mortgage® makes it easy to get a mortgage — you just tell the company about yourself, your home, your finances and Rocket Mortgage® gives you real interest rates and numbers. You can use Rocket Mortgage® to get approved, ask questions about your mortgage, manage your payments and more.

You can work at your own pace and someone is always there to answer your questions — 24 hours a day, 7 days a week. Want a fast, convenient way to get a mortgage? Give Rocket Mortgage® a try.