First-time home buyers in the Bangor area are finding a silver lining in the dark cloud that’s shadowing the nation’s economy right now.

For those who had put off buying a house because of soaring prices in the past few years, the current market brings good news – lower prices and reduced interest rates.

“It definitely is a buyer’s market. Inventory is very high,” said Tricia Largay, a real estate agent who works frequently with first-time buyers at Realty of Maine. “We have a lot of sellers who made it through the winter, paying those oil bills, and are ready to sell. I definitely think buyers have bargaining power.”

According to Largay and other local real estate agents, most first-time home buyers search for properties priced below $150,000. In Bangor alone, 103 homes fit that description, according to the nationwide Multiple Listing Service.

Jeff Snow and Erica Newman of Brewer decided to take advantage of the buyer’s market last fall and called on Largay. The couple had been renting separately and together for a total of five years but were unsure they were ready for the responsibilities and costs associated with homeownership. With some encouragement from their family, Snow, 30, and Newman, 26, purchased a three-bedroom Cape in Brewer. They paid $11,000 less than the original asking price of $136,000.

“In the back of my mind, I thought I didn’t have that much saved [for a down payment],” Newman said. But after consulting with Cuso Mortgage Corp. in Hampden, the couple found they had enough and secured a 30-year mortgage with an interest rate of 4.9 percent with MaineHousing’s First Home Program.

Since their Nov. 16 closing, Snow and Newman have knocked down a wall and made a number of cosmetic improvements, including fresh paint in every room, with a modest budget of $1,500.

Johanna Wheeler, 26, of Veazie already is making a list of the improvements she’d like to make to the ranch-style home she is about to close on in Hampden. Wheeler looked at dozens of homes online for the past year, and with the help of Realtor Pauline Rock of ERA Dawson-Bradford, she toured 10 in person.

“I’m very picky,” Wheeler said. “I knew it was the one the minute I pulled in the driveway.”

With a U.S. Department of Agriculture Rural Development loan, Wheeler obtained 100 percent financing – meaning no down payment – for a 30-year mortgage. In the past year, Wheeler noticed the interest rate drop from 8 percent to 6.25 percent, which is the rate she secured.

In an effort to navigate the changing market and buyer demands, the First Home Program at MaineHousing, another name for the Maine State Housing Authority, recently added a number of options to its already wide array of fixed-rate offerings.

Discount points, which may be paid at closing to reduce the buyer’s interest rate, are now offered in zero- and two-point packages. They replace the previous three-point option. The First Home Program interest rates are as low as 5.1 percent right now. And all First Home mortgages also come with payment protection for unemployment.

The state’s free first-time home buyer classes, offered throughout the state, are consistently full, according to Gail McBride, director of homeownership at MaineHousing.

“We felt that it was important to offer choices to borrowers” that reflect recent changes in the industry, McBride said. “This really aligns us with how the conventional mortgage market is right now.”

Eligibility for the First Home Program is in part determined by income. Residents of Penobscot County in a one- or two-person household, for example, must earn less than $55,400 to qualify. Residents of Penobscot County with more than three people in their household must earn less than $63,710 to qualify.

For house hunters with higher incomes, Bangor Savings Bank offers a Welcome Mortgage that allows for a 10 percent down payment and a fixed rate on a 30-year loan, according to Jane Irving, a senior vice president at the bank.

Like Bangor Savings Bank, First Choice Mortgage of Maine in Brewer offers first-time home buyers an opportunity to buy their home with little to no money down using government-backed programs offered by the Federal Housing Administration, the U.S. Department of Veterans Affairs and the U.S. Department of Agriculture.

“None of these programs have prepayment penalties or recapture fees,” said Gayle Ballesteros, a loan officer with First Choice Mortgage of Maine. “Not only are there many programs to take advantage of, but the potential to build equity in the years to come is awesome.”

Equity, along with more personal space, is what Don and Cindy Nadeau have in mind as they begin their house hunt this summer. The Nadeaus and their four children, ages 5 through 12, have been renting an apartment in Bangor for the past five years. After Cindy Nadeau, 35, graduates from nursing school later this month, the couple will feel financially secure enough to buy their first home, Don Nadeau, 39, said Friday.

“When we saw how things were going we said, ‘Let’s start looking now,’ so we could start locking in a decent rate,” he said. “But even though rates are down, prices aren’t yet, so we’re going to just offer what we can.”

As the family searches for a four-bedroom, two-bath home with agents Chip and Sherry Brooks of Town and Country Realtors in Bangor, it may be only a matter of time before they find a bargain.

aravana@bangordailynews.net

990-8133