Vermont Housing Finance Agency (VHFA) Programs:
Updated July 1, 2026VHFA offers 30‑year fixed mortgages through approved lenders and several down payment/closing cost assistance options for eligible buyers. Check current rates, targeted area rules, and program caps at vhfa.org/homebuyers and reserve programs with a VHFA lender.
Vermont First‑Time Homebuyer Mortgage Programs:
Eligibility: First‑time buyers (no primary residence in past 3 years unless waived in targeted/shared‑equity cases); income and purchase limits vary by county and household size — confirm on VHFA's limits page below.
Offerings: 30‑year fixed mortgages (MOVE, MOVE MCC, VHFA Advantage, and others) that can be paired with FHA, VA, USDA, or conventional products through participating lenders.
Requirements:
- Income & purchase price limits are county‑specific — see VHFA's official limits table (2026 table is active). (Example ranges: MOVE/Advantage eligibility commonly falls in the roughly $120k–$185k range in higher‑cost counties depending on household size; check your county/household on VHFA's limits). vhfa.org/homebuyers/limits.
- Minimum credit score: varies by product and lender — FHA follows HUD guidance (580 for the 3.5% down option, but many lenders have overlays); VHFA conventional products delivered to Fannie/Freddie commonly expect higher scores (many lenders target mid‑600s or above). See program guidance and discuss lender overlays with your VHFA lender. HUD/FHA guidance, VHFA Program & Procedural Guide.
- Debt‑to‑income: underwriting is product/AUS driven and lenders set overlays — many lenders target ~45% back‑end DTI in practice, and some VHFA‑eligible structures may allow higher ratios with compensating factors; confirm with your lender. VHFA Program & Procedural Guide.
- Homebuyer education is required for many VHFA programs; free counseling and approved classes are available through VHFA‑approved agencies. vhfa.org/homebuyers.
Down Payment Assistance (DPA) Options (VHFA & partners):
VHFA ASSIST (DPA): A 0% deferred second mortgage (non‑amortizing) typically used for down payment and eligible closing costs. VHFA's quick reference shows ASSIST is available up to $10,000 (amounts and pairing rules vary by product and year). Confirm current caps and stacking rules with VHFA or your lender. vhfa.org - ASSIST DPA, VHFA Down Payment Programs — Quick Reference.
First‑Generation Homebuyer Grant: A statewide grant that is listed at $15,000 when paired with an eligible VHFA mortgage (subject to program rules, income/asset limits, and participating lenders). Check lender pairing rules and FHA acknowledgement requirements if using an FHA first mortgage. vhfa.org/first-gen-program, VHFA Down Payment Programs — Quick Reference.
Other VHFA assistance: Shared‑equity assistance and smaller grants are available in some VHFA programs (VHFA quick ref shows a typical shared‑equity grant example of $5,000). Pairing/stacking order matters — VHFA materials specify the order funds must be applied. VHFA Down Payment Programs — Quick Reference, VHFA Program & Procedural Guide.
Local & Regional Programs (Examples)
Local nonprofits, housing trusts, credit unions and municipal housing funds often offer DPA, forgivable seconds, or shared‑equity homes. These programs are funding‑limited and change year to year — contact the program directly for current availability.
Champlain Housing Trust (regional)
Champlain Housing Trust runs shared‑equity homes, targeted down‑payment programs (including manufactured‑home DPA and buyer grants) and homebuyer counseling in Chittenden and surrounding counties. A practical first stop for many buyers in northwest Vermont. getahome.org.
Municipal / county examples
City or county housing trust funds and CDBG/HOME allocations sometimes provide one‑time DPA or closing‑cost grants — availability and award sizes vary by fiscal year. Contact your local Community & Economic Development or Housing Authority for current offerings (example: Burlington CDBG/HOME). burlingtonvt.gov CDBG.
Other Common Loan Options
- USDA Single‑Family Guaranteed Loan: 100% financing (0% down) in eligible rural areas; property and area income eligibility apply — work with approved USDA lenders. USDA fact sheet.
- VA Loans: No required down payment for eligible veterans/service members (with COE) — work with VA‑experienced lenders to confirm entitlement and funding fee details. va.gov.
- FHA Loans: HUD/FHA allows a 3.5% down option for borrowers with credit scores of 580+ (scores 500–579 generally require 10% down); lenders often impose overlays above HUD minimums. HUD/FHA guidance.
Always confirm limits, funding & lender overlays with a VHFA‑approved lender and the official VHFA pages above before reserving or committing.
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