VA Construction Loans in Maine

Building a home in Maine means planning around ledge, long winters and a short season for site work. A VA one-time close construction loan lets an eligible Veteran or service member buy the land (or pay off land already owned), build and set up the permanent mortgage with one closing. Shirley Mueller's team handles Maine VA construction loans from application to move-in. Here's how the program works: a lender-approved builder, a fixed-price contract and a 12-month construction period with no payments during the build.

Where Veterans build in Maine

Southern Maine has the most new construction. Near Portsmouth Naval Shipyard in Kittery, many civilian and military workers build in Kittery, Eliot, York, South Berwick, Berwick and Lebanon, and in Sanford and Wells a little farther north. Greater Portland's growth spills into Gorham, Windham, Standish, Buxton, Scarborough, Saco and Biddeford, along with Cumberland, Yarmouth and Gray.

The midcoast towns of Brunswick, Topsham and Bath also see steady new construction. Inland, the Lewiston–Auburn area and the Augusta region (near Togus, the VA medical center in Chelsea) offer more land for the money. In the north, Bangor-area towns like Hermon, Hampden, Brewer, Glenburn and Orono are popular, and the Maine Air National Guard's 101st Air Refueling Wing flies out of Bangor. Aroostook County, around Presque Isle and Caribou, has large, inexpensive parcels for Veterans who want space.

Land and site conditions in Maine

• Ledge and rocky soils. Bedrock close to the surface is common, and blasting or extra excavation for a basement or septic system can add real cost. Have your builder walk the lot and include site work in the fixed-price contract.
• Septic design. Most rural Maine lots need a septic system. Designs are done by a state-licensed site evaluator using Maine's HHE-200 application, and the permit goes through your town's local plumbing inspector. Soil tests determine where the system can go and how big it must be, so have the site evaluated before you buy.
• Private wells. Drilled wells are the norm outside town water. Testing the water — Maine wells can have naturally occurring arsenic or radon — is a smart step, and the lender will typically ask for a water test.
• Frost and snow load. Maine's frost penetrates deep, so foundations go well below grade, and roofs must be designed for heavy snow loads. Builders familiar with your county will know the local requirements.
• Shoreland zoning. Waterfront lots on lakes, rivers, the coast and wetlands fall under shoreland zoning rules, which control setbacks, clearing and building size. Your town's code enforcement officer can tell you what's allowed.
• The building season. Excavation and foundations are easiest from spring through fall. The 12-month construction period gives room to frame and close in before winter and finish inside.

Two Maine-specific limits: a seasonal camp doesn't qualify, because the home has to be your year-round primary residence, and a lot where work has already begun can't be financed. Working farms aren't eligible either. If you already own the land, it can be rolled into the loan with any balance paid off at closing; see VA construction loan on land you already own.

Building codes, contracts and your builder

Maine has a statewide code, the Maine Uniform Building and Energy Code (MUBEC). It applies to all buildings constructed in Maine, but towns with 4,000 or more residents must adopt and enforce it, while smaller towns may choose to. That means the inspection process in a small town can look very different from Portland's. Check with your town's code office before you buy land.

Maine also regulates home construction contracts. Under state law, any home construction contract over $3,000 must be in writing and must include, among other things, the price, a payment schedule, start and completion dates, a warranty statement and a change-order process. The Maine Attorney General publishes a consumer guide and model contract. Your fixed-price construction contract will need to satisfy both Maine law and the lender's requirements.

Your builder must be approved by the lender before closing. VA no longer issues builder IDs, so the lender reviews the builder's experience, insurance and finances. These VA construction loans don't allow owner-builders or DIY work. See our builder information page.

Site-built homes, modular homes (common in Maine because they shorten time on site), barndominiums and new multi-width manufactured homes on a permanent foundation can all be eligible if they meet VA's minimum property requirements.

Maine property tax relief for Veterans

Maine's veterans' exemption is set out in 36 M.R.S. § 653 and explained in Maine Revenue Services Property Tax Bulletin No. 7:

• A qualifying Veteran who served during a recognized war period (or meets other service tests) and is either 62 or older, or receiving a federal pension or compensation for total disability, can exempt up to $6,000 of just value on their home in the town where they live.
• A Veteran who is totally and permanently disabled and received a federal grant for specially adapted housing can exempt up to $50,000 of just value.
• The amount is adjusted by your town's certified ratio, and some spouses and family members may also qualify.
• Apply to your town's assessor and provide proof by April 1 of the first year you request the exemption.

Maine also has a general homestead exemption for permanent residents. Ask your assessor about both once your home is built. Compare other states on our property tax exemption by state page.

MaineHousing offers its own home loan program for Veterans, a separate state mortgage, not a VA construction loan. See the Maine Bureau of Veterans' Services housing page for state benefits.

Qualifying for a Maine VA construction loan

VA construction loans start at a 620 minimum credit score, and larger loan amounts may need a higher score. Loans up to $1 million need $0 down; loans over $1 million, up to $2 million, need 5% down. Maine is in VA's Northeast residual-income region, and residual income is reviewed first. A higher DTI is often fine when residual income is strong.

The schedule is about 2–3 months to close followed by a 12-month construction period, which in Maine usually means excavating in the warmer months and finishing interior work in winter. You make no payments until the loan converts to a 15- or 30-year fixed mortgage, because the interest reserve and construction management fee are built into the loan amount and paid by the builder. See closing costs and eligibility.

Maine VA construction loan FAQs