FOR IMMEDIATE RELEASE

Bowdoin College Enhances Employee Homeownership with Expanded First-Time Home Buyer Assistance Program

BRUNSWICK, ME – August 25, 2025 – Bowdoin College today announced significant enhancements to its First-Time Home Buyer Assistance Program, a key initiative designed to support faculty and staff in achieving homeownership in the Mid Coast region. The program offers a potentially forgivable loan to eligible employees, addressing the challenges of limited affordable housing in the area.[1]

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The updated program, effective for closing dates between March 1, 2024, and February 28, 2027, provides a secured loan of up to ten percent of the home's purchase price, with a maximum of $50,000.[2] This financial assistance is intended to cover a portion of the purchase price and/or closing costs, including points or private mortgage insurance.[2] The loan proceeds are paid directly to the payee of the purchase price and/or closing costs, not to the individual employee.[2]

To qualify for this benefit, employees must be continuing benefits-eligible faculty with an ongoing, renewable appointment or continuing benefits-eligible staff who are in good standing.[2] They must have been employed at the College for at least 30 days at the time of home closing and be "first-time home buyers" as defined by the program.[2] A "first-time home buyer" is an employee, or an employee with their spouse or domestic partner, who has not owned a primary residence within 40 miles of the College campus within the past five years.[2] The property must be located within 40 miles of Bowdoin's central campus and serve as the employee's primary residence.[3]

The program requires primary mortgage financing to be obtained from either Bath Savings Institution or Kennebec Savings Bank, in an amount not less than 50% of the home's purchase price.[3] These two banks are identified as "Participating Banks" and will assist in processing both the primary mortgage and the College's second loan.[1]

Eligible properties include single-family residences, single-family residences with in-law suites (with shared living space), townhouses/condominiums, and mobile homes permanently affixed to land owned by the employee.[2] The program specifically excludes vacation properties, houseboats, initial construction, investment properties, multiple family dwellings or duplexes (if self-contained), commercial properties, and recreational vehicles.[2]

The College's loan has a ten-year term with an interest rate fixed on the long-term Applicable Federal Rate at the time of loan origination.[2] A key feature of the program is the potential for loan forgiveness: principal will be forgiven in equal annual installments (1/10 of the original loan amount) over the life of the loan, provided the employee remains in a benefits-eligible position at the College and continues to work on campus either full-time or in a hybrid role at least two days per week.[2] Interest will be calculated on an annual declining balance basis.[2]

Important tax implications exist, as forgiven principal and interest will be reported as taxable income to the employee on Form W-2.[2] Employees may elect to have extra tax withheld from wages using Form W-4 to assist with year-end tax payments related to the loan.[2]

This initiative underscores Bowdoin College's commitment to supporting its employees and fostering a stable community. The College has previously demonstrated its dedication to local community support through programs like the Common Good Grant, which provides funding to Midcoast non-profits, including those focused on housing and basic needs.[4] The College has also been involved in property matters within the Brunswick community, as evidenced by its legal action concerning a property on College Street to ensure adherence to prior agreements.[5]

Employees interested in the First-Time Home Buyer Assistance Program are encouraged to review the full policy available on the Bowdoin website and contact Amy Dionne in the Treasurer’s Office for additional information.[3] [2] It is also advised that employees seek advice from their own tax advisor regarding the program's implications.[2]

About Bowdoin College

Bowdoin College, a highly selective liberal arts college, is located in Brunswick, Maine. Founded in 1794, it is known for its commitment to academic excellence and community engagement.

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