Vermont First-Time Homebuyer Assistance Programs

Home prices in Vermont are up about 7 percent from last year as of Feb. 2025, according to Redfin. However, the number of homes for sale in the state has increased by nearly 15 percent in the last year.

If you’re a first-time homebuyer in Vermont, the Vermont Housing Finance Agency can help you get the funds you need to make it happen. This state organization is dedicated to promoting affordable housing through mortgage and down payment assistance programs. Here’s a look at some of the options that might be able to help you in your homebuying journey.

Vermont first-time homebuyer programs

VHFA MOVE program

The Vermont Housing Finance Agency’s (VHFA) MOVE program offers the organization’s lowest interest rates. These loans might come with a low down payment requirement between zero and 5 percent of the purchase price, 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 $1,735 on the Vermont transfer tax.

• 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
  • Must purchase a primary residence
  • Minimum 640 credit score (may need a higher score depending on the lender)
  • Must complete a homebuyer education course
  • Must meet VHFA income limits, which vary by county, household size and type of loan, and range from $100,000 to $145,000
  • Must not exceed purchase price limits of $425,000 for a one-unit or $450,000 for a two-unit

• Pros and cons
  

  Pros

  • More affordable interest rates
  • Open to multiple property types (single-family homes, approved condos, existing two-unit duplexes, and certain manufactured homes)
  • Up to $1,735 in savings on Vermont Transfer Tax

  Cons

  • Not open to co-ops or properties of more than 15 acres
  • May need a minimum credit score of up to 680
  • Limited participating lenders (about 20)

VHFA Advantage program

If you don’t qualify for MOVE, the VHFA’s Advantage program may be an option. The program offers higher income and purchase price limits — a $140,000 annual earning cap ($170,000 if your household has 3 or more individuals) and a $500,000 maximum sales price, regardless of the county. The requirements are fairly similar to those for the MOVE program.

• Requirements
  

  • Minimum 640 credit score (may need a higher score depending on the lender)
  • Current homeowners must sell their home before receiving VHFA financing
  • Must complete homebuyer education course
  • Must meet VHFA income limits, which vary by household size and range from $140,000 to $170,000
  • Must not exceed purchase price of $500,000

• Pros and cons
  

  Pros

  • Open to first-time and repeat homebuyers
  • Offers the organization’s highest income and purchase price limits
  • Up to $1,735 in savings on Vermont Transfer Tax

  Cons

  • Not open to co-ops or properties of more than 15 acres
  • May need a minimum credit score of up to 680
  • Limited participating lenders (about 20)

Vermont down payment assistance and grants

VHFA ASSIST down payment assistance

The ASSIST program through the VHFA offers first-time homebuyers down payment and closing cost assistance of up to $10,000. 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.

• Pros and cons
  

  Pros

  • Can be used for down payment and closing costs
  • Repayment deferred until you sell the home or refinance
  • Has zero interest and no monthly payments

  Cons

  • Not available with a VA loan
  • Can’t have more than $30,000 in liquid assets
  • Limited participating lenders (about 20)

First-Generation Homebuyer Assistance

The VHFA also offers grants of up to $15,000 toward down payment and closing costs for first-generation homebuyers, which the organization defines by meeting one of these conditions:

• You have been placed in foster care at some time in your life.
• Your parents or legal guardians have never owned a home.
• Your parents or legal guardians lost their home due to foreclosure.

The grant money is available on a first-come, first-served basis until it runs out.

• Pros and cons
  

  Pros

  • May be combined with the ASSIST down payment assistance program
  • Can be used for down payment and closing costs
  • Does not have to be repaid

  Cons

  • Can’t have more than $30,000 in liquid assets
  • Funds offered on a first-come, first-served basis

City-specific homebuyer assistance programs

Champlain Housing Trust’s shared equity program

Low- and moderate-income borrowers trying to buy in northwest Vermont may be eligible for down payment assistance that covers 20 to 30 percent of the home’s market value. You have to pay the closing costs ($10,000 to $12,000), but the grant covers the down payment and reduces the amount you need to borrow. You don’t need to pay back the funds.

When you sell your house, you must sell it back through the Champlain Housing Trust program, which may limit your profit. If your home’s value increases while you live there, you get 25 percent of the appreciation upon sale.

• Requirements
  

  • Can’t have more than $60,000 in liquid assets
  • Must meet income limits, which vary by household size and range from $99,960 to $188,400 for one- to eight-person households
  • Must have at least $3,000 in savings
  • Must be able to pay up to $12,000 in closing costs
  • Home must be owner-occupied
  • Must complete a homebuyer education course

• Pros and cons
  

  Pros

  • Up to 30 percent of the home’s market value in down payment assistance
  • Does not have to be repaid

  Cons

  • Can’t have more than $60,000 in liquid assets
  • Must have at least $3,000 in savings
  • Can only be used for down payment

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 the VHFA to obtain your mortgage.

There are income limits for the MCC, which range from $100,000 to $145,000 depending on your household’s size and what county you live in. There is also a purchase price limit, which ranges from $425,000 to $450,000.

VHFA MOVE MCC

This VHFA program combines the benefits of the MCC with the MOVE mortgage program. With this option, 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 the VHFA’s down payment ASSIST program.

Other first-time homebuyer loan programs

While you’re considering the first-time homebuyer programs available specifically for Vermont residents, be sure to explore other national programs that could help you purchase a home. Government-backed programs such as FHA loans, VA loans and USDA loans can be good options for qualifying borrowers with low incomes or less-than-perfect credit scores.

Get started

Now that you have more information on first-time homebuyer programs in Vermont, you’re ready to take the next steps:

• Explore other first-time homebuyer programs by state