AUGUSTA — Th Maine State Housing Authority has announced the interest rate on its first-time home buyer loans will be 6.25 percent, the lowest rate offered since 1994.

“We know there are many more Maine renter families who want to buy a home, but have not been able to because of the cost,” said MSHA Director David Lakari. “This reduced interest rate, … will allow more Maine families an opportunity to achieve their dream of home ownership.”

Low- and moderate-income families purchasing their first homes can use the loans.

The loans are available from more than 35 banks and other lenders in Maine. Participating lenders and real estate professionals can provide borrowers with information about income and home price limits under the program.

In addition, the program provides reduced down payment requirements, generally at 5 percent or less. Out-of-pocket expenses for many borrowers can be reduced further by using the closing cost assistance option.

For more informtion, call the MSHA at 1-800-452-4668.