These loans might come with a low down payment requirement, and all can be combined with the agency’s down payment assistance program for even more upfront savings. In addition, you could save up to $825 on the Vermont transfer tax.

Borrower requirements:

• Must be a first-time homebuyer (or have not owned a residence in the prior three years) if purchasing in Addison, Bennington, Chittenden, Grand Isle or Windsor counties
• 640 to 680 minimum credit score, depending on loan and property type
• Maximum 45 percent to 50 percent debt-to-income (DTI) ratio, depending on loan
• Must complete pre-closing education course
• Must meet VHFA income limits, which vary according to county, household size and type of loan, and range from $92,800 to $110,000

Property requirements:

• Can be a single-family home, condominium, townhome, duplex or certain manufactured homes (on owned land), depending on loan
• Must be in Vermont
• Must be a primary residence
• Must meet VHFA purchase price limits, which depend on county and property type and range from $300,000 to $350,000

Vermont down payment assistance

VHFA ASSIST down payment assistance

The ASSIST program through VHFA offers first-time homebuyers down payment and closing cost assistance of up to $15,000. This assistance, which is a no-interest, no-monthly payment loan, is available to those who qualify for VHFA’s MOVE and Advantage mortgage programs. The loan must be repaid when you sell your home or refinance your first mortgage.

To qualify, you’ll be required to complete homebuyer education, and must meet the income and purchase price limits that apply to the first mortgage program you’re using. You also can’t have more than $30,000 in liquid assets, excluding retirement savings.

Other Vermont homebuyer assistance programs

Mortgage credit certificate (MCC)

In Vermont, first-time homebuyers, qualifying veterans and those purchasing in specific target areas are eligible for a mortgage credit certificate (MCC), a tax credit on their mortgage interest equal to up to $2,000 per year. This program is available to all qualifying borrowers, regardless of whether you work with VHFA to obtain your mortgage.

There are income limits for the MCC, which range from $84,000 to $110,000 depending on your household’s size and what county you live in. There is also a purchase price limit, which ranges from $300,000 to $350,000.

VHFA MOVE MCC

This VHFA program combines the benefits of the MCC with the MOVE mortgage program, so you can get the federal tax credit as well as the advantages of a MOVE loan, including savings on transfer taxes, low down payment options and lower mortgage insurance. This program can also be used in conjunction with VHFA’s down payment ASSIST program.

Other first-time homebuyer loan programs

While you’re considering the first-time homebuyer programs available to Vermont residents, be sure to explore other national programs that could help you purchase a home. Check out Bankrate’s helpful guide to first-time homebuyer loans and programs to see what you might qualify for.

Get started

Now that you have more information on first-time homebuyer programs in Vermont, you’re ready to take next steps. The Vermont Housing Finance Agency has a list of participating mortgage lenders who can help guide you as you start the loan process.