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Troy Jackson Faces Renewed FHA Loan Questions After Maine Democrats’ First Senate Pick Collapsed

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Maine Democrats turned to Troy Jackson after their first U.S. Senate nominee withdrew amid scandal. Now Jackson is again facing questions about whether he improperly used a federally insured mortgage to purchase a second home near the State House.

Jackson, a former Maine Senate president and Bernie Sanders ally whom Maine’s Democratic Socialists of America endorsed during his earlier gubernatorial campaign, purchased a three-bedroom Augusta house with his partner in September 2019 for $216,000. The property was financed through an FHA-backed mortgage intended for a borrower’s primary residence. The Maine Wire⁠ first reported on the agreement in 2023.

Jackson signed the mortgage and initialed the page containing its occupancy requirement:

“I will occupy the Property and use the Property as my principal residence within 60 days after I sign this Security Instrument. I will continue to occupy the Property and to use the Property as my principal residence for at least one year.”

Jackson, however, continued to identify Allagash—nearly 300 miles from Augusta—as his residence on campaign documents, voter-registration records, his driver’s license and homestead-exemption paperwork. He also received more than $160,000 in legislative reimbursements and allowances between 2019 and 2023, including payments connected to travel and lodging. According to records reviewed by The Maine Wire⁠, those payments increased after he purchased the Augusta house.

Investigative reporter Steve Robinson renewed scrutiny of the arrangement Monday after Jackson discussed the property during a Sept. 13 campaign forum in Biddeford. Jackson said the Augusta house made it easier to store his belongings while working near the State House.

“The [Augusta] house was just a much easier place for me to keep my stuff,” Jackson said.

Robinson argued that the explanation raised additional questions because FHA loans generally cannot be used to purchase investment properties, second homes or storage space. In his latest report⁠, Robinson wrote that Jackson “told the Ethics Commission, over and over, that he lived in Allagash” while having signed a mortgage promising to make the Augusta property his principal residence.

Jackson has repeatedly maintained that Allagash remained his permanent home. When the mortgage documents first received public attention in 2023, he told the Portland Press Herald that he “never really read the forms.” Jackson said he paid a mortgage broker “a lot of money” and relied on that broker to ensure the transaction complied with federal requirements. The broker disputed Jackson’s account, telling The Maine Wire that his company followed FHA rules and expected borrowers to read and complete their applications.

The Augusta property also became the subject of a lawsuit Jackson and his partner filed against sellers Paul and Jane Godbout. The lawsuit alleged that the sellers concealed carpenter-ant damage, mold and evidence of a previous fire. The Godbouts denied the accusations and said Jackson had received a home inspection identifying evidence of carpenter ants before completing the purchase. Jackson sold the house in December 2021 for $323,000—$107,000 more than the purchase price—although that figure does not account for renovations, taxes, closing costs or other expenses.

Then-state Rep. John Andrews filed an ethics complaint against Jackson in 2023, but the Maine Commission on Governmental Ethics and Election Practices voted unanimously against opening a formal investigation. Commissioners said they lacked sufficient evidence of a campaign-finance violation and noted that mortgage requirements and legislative reimbursements fell outside the commission’s jurisdiction. The decision therefore did not determine whether Jackson complied with his FHA agreement. No criminal charges have been filed.

The controversy arrives after Maine Democrats’ original Senate nominee, Graham Platner, withdrew following allegations of sexual assault, which he denied. New Conservative Post previously reported⁠ that Platner’s campaign had already endured scrutiny over deleted online posts, his personal conduct and a tattoo resembling a symbol used by the Nazi SS.

Jackson’s questions also fit a wider pattern of scrutiny surrounding candidates associated with the socialist wing of the Democratic Party. New Conservative Post has reported⁠ on deleted posts from New York congressional nominee Darializa Avila Chevalier advocating the abolition of police, prisons and borders; controversial Sept. 11 remarks by New York state Senate nominee Aber Kawas; and past statements from Wisconsin gubernatorial candidate Francesca Hong. The candidates have generally argued that critics are emphasizing old statements and personal controversies to avoid debating their economic proposals.

Jackson is campaigning against Republican Sen. Susan Collins as a working-class advocate for rural Maine. His supporters say northern Maine legislators frequently maintain temporary housing near Augusta without changing their permanent legal residences. The unresolved question is different: whether Jackson could truthfully maintain Allagash as his principal residence while simultaneously obtaining an FHA-backed loan by promising to make the Augusta house his principal residence.

Jackson’s campaign had not issued a detailed response to Robinson’s latest report.

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