First-Time Home Buyer Programs in Vermont

Vermont Housing Finance Agency (VHFA) Programs:

VHFA Advantage:

Eligibility: Targets first-time homebuyers (no homeownership in the past three years), veterans, or buyers in targeted areas (e.g., qualified census tracts); eligible properties include single-family homes, condos, manufactured homes on owned land, or multi-family homes (2-4 units, owner-occupied).
Offerings: Provides a 30-year fixed-rate mortgage (FHA, VA, USDA, or conventional) with competitive rates; can be paired with ASSIST down payment assistance or Mortgage Credit Certificate (MCC).
Requirements:

• Income must not exceed $128,100 for a 1-2 person household or $149,450 for 3 or more in high-cost counties (e.g., Chittenden); lower limits apply elsewhere (e.g., $102,400 in Rutland County).
• Minimum credit score of 620 (660 for conventional to avoid fees).
• Debt-to-income ratio capped at 45% (50% with compensating factors).
• Homebuyer education course (6-8 hours, ~$75-$100) required.
• Purchase price limit of $481,176 for single-family homes.
• Minimum borrower contribution of $1,000 plus one month’s housing cost reserves.

Learn more about VHFA Advantage

ASSIST Down Payment Program:

Benefits: Offers up to $25,000 as a 0% interest, no-monthly-payment second mortgage (repayable upon sale, refinance, or after 30 years) for down payment, closing costs, or prepaid expenses; available with VHFA mortgages.
Eligibility: Must use a VHFA first mortgage (Advantage, MOVE, or MOVE MCC); same income and purchase price limits apply; homebuyer education required.

Learn more about ASSIST Down Payment Program

MOVE Program:

Description: Provides a 30-year fixed-rate mortgage with rates up to 0.25% below VHFA Advantage or up to 5% of the loan amount as a 0% interest, no-monthly-payment second mortgage for down payment/closing costs; no first-time buyer requirement in targeted areas or for veterans.
Requirements: Income capped at 80% AMI (e.g., $78,150 for a family of four in Chittenden County, $64,150 in Washington County); minimum credit score of 620; homebuyer education required; must pair with a VHFA mortgage.

Learn more about MOVE Program

MOVE MCC Combo:

Description: Combines MOVE mortgage with a Mortgage Credit Certificate, offering lower rates and a federal tax credit of up to 50% of annual mortgage interest (max $2,000 yearly); ideal for low- to moderate-income buyers.
Requirements: Same as MOVE; MCC fee of $800 ($400 with ASSIST); homebuyer education required; recapture tax may apply if sold within 9 years.

Learn more about MOVE MCC Combo

Vermont Homebuyer Grant:

Description: Offers a $5,000 non-repayable grant for first-time buyers; income at or below 120% AMI (e.g., $117,250 in Chittenden County); funds limited and available until depleted.
Requirements: Requires purchase contract and homebuyer education; no specific lender or loan program required.

Learn more about Vermont Homebuyer Grant

Local Programs:

Burlington

Champlain Housing Trust Homeownership Program: Offers up to $40,000 as a 0% interest, deferred loan (repayable upon sale or refinance) for first-time buyers; income at or below 100% AMI (e.g., $97,700 for a family of four in Chittenden County); requires $1,000 contribution and homebuyer education.

Learn more about Burlington Homeownership Program

Montpelier

Montpelier Down Payment Assistance: Offers up to $35,000 as a forgivable loan (forgiven after 5 years) for first-time buyers or those who haven’t owned in 5 years; income at Hawkins capped at 100% AMI (e.g., $80,200 for a family of four in Washington County); requires $1,000 contribution and homebuyer education.

Learn more about Montpelier Housing Programs

Rutland

NeighborWorks HomeOwnership Center: Offers up to $25,000 as a 0% interest, deferred loan (repayable upon sale or refinance) for first-time buyers; income at or below 80% AMI (e.g., $64,150 for a family of four in Rutland County); requires $1,000 contribution and homebuyer education.

Learn more about Rutland Homeownership Programs

Additional Information:

• Mortgage Credit Certificate (MCC): Provides a federal tax credit of up to 50% of annual mortgage interest (max $2,000 yearly) for first-time buyers; fee (~$800, $400 with ASSIST) applies; combinable with VHFA loans; recapture tax may apply if sold within 9 years.
• FHA Loans: Minimum 3.5% down payment, suitable for credit scores as low as 580 (10% if below 580).
• USDA Loans: Zero-down payment for rural Vermont areas; income limits apply.
• VA Loans: Zero-down payment for eligible veterans or active military; no PMI; flexible credit requirements.
• Median Home Price: $375,000 (February 2025); median down payment: $22,500 (6% of median price).

Explore additional HUD homeownership resources