Vermont Housing Finance Agency (VHFA) Programs:
Updated July 1, 2026VHFA offers 30‑year fixed mortgages through approved participating 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 participating 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, 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 (numbers shown are effective as of July 1, 2026). Example ranges: MOVE income limits for 1–2 person households commonly start around $110,000 in lower‑limit counties while Advantage 1–2 person limits are $150,000 statewide; check your county/household on VHFA's limits. vhfa.org/homebuyers/limits.
- Minimum credit score: VHFA notes typical program minimums commonly fall in the 640–680 range depending on the product; lenders set formal acceptance and overlay rules, so confirm exact lender requirements with your VHFA participating lender. See the VHFA Program & Procedural Guide for product details. vhfa.org/homebuyers and the VHFA Program & Procedural Guide (2026) provide program guidance.
- Debt‑to‑income: underwriting is product/AUS driven and lenders set overlays — many lenders target ~45% back‑end DTI in practice; some VHFA‑eligible structures may allow higher ratios with compensating factors. Confirm with your lender and see the procedural guide for lender deliverability rules. VHFA Program & Procedural Guide.
- Homebuyer education is required for many VHFA programs; approved counseling and free classes are available through VHFA‑approved providers. 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 materials and quick reference show ASSIST is available up to $10,000 (amounts and pairing rules vary by product and year). ASSIST is available only with a VHFA first mortgage and is not eligible with a VA first mortgage. Confirm current caps and stacking rules with VHFA or your participating lender. See VHFA's ASSIST overview and the quick reference: vhfa.org - ASSIST DPA, VHFA Down Payment Programs — Quick Reference.
First‑Generation Homebuyer Grant: A statewide grant listed at $15,000 and may be combined with an eligible VHFA mortgage (subject to program rules, income/asset limits, and participating lenders). Eligibility includes never having owned a home plus additional First‑Generation criteria (for example, certain foster‑care or parental ownership history conditions). 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 appear in VHFA materials (quick reference shows example shared‑equity grant amounts). 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.
Always confirm limits, funding & lender overlays with a VHFA‑approved participating lender and the official VHFA pages above before reserving or committing.
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