Down Payment Path

Down Payment Assistance Programs in Vermont

Vermont offers several programs to help homebuyers manage the upfront costs of purchasing a home. These initiatives are available to both first-time and repeat buyers, ensuring that more residents can achieve their homeownership goals across the Green Mountain State.

VHFA ASSIST Program

The Vermont Housing Finance Agency (VHFA) ASSIST Program provides financial support to cover down payments and closing costs for eligible buyers.

  • Offers up to $15,000 in assistance as a no-interest, deferred-payment loan.
  • Repayment is deferred until the home is sold, refinanced, or no longer the buyer’s primary residence.
  • Pairs with VHFA’s affordable mortgage products, including conventional, FHA, VA, and USDA loans.
  • Available to buyers meeting income and purchase price limits.

Move Up Vermont Program

The Move Up Vermont Program provides enhanced mortgage options with down payment assistance for repeat buyers and homeowners looking to upgrade.

  • Offers down payment assistance through the ASSIST program.
  • Available to both first-time and repeat buyers purchasing their primary residence.
  • Includes competitive fixed interest rates on 30-year loans.

USDA Rural Development Loans

For buyers in rural areas of Vermont, the USDA Rural Development Loan provides affordable financing with no down payment requirement.

  • Open to low- and moderate-income buyers in USDA-designated rural areas.
  • Features flexible credit requirements and competitive interest rates.
  • Can be combined with VHFA assistance programs to cover closing costs.

Mortgage Credit Certificate (MCC)

The Mortgage Credit Certificate (MCC) program offers valuable tax savings to reduce the cost of homeownership over time.

  • Allows buyers to claim a federal tax credit for a portion of their annual mortgage interest.
  • Pairs with VHFA loans and down payment assistance programs.
  • Income and purchase price limits apply but are designed to include a broad range of buyers.

Local Assistance Programs

Several cities and towns in Vermont provide additional resources for homebuyers to help cover upfront costs.

  • Programs in areas like Burlington, Montpelier, and Rutland offer grants or low-interest loans for down payments and closing costs.
  • Some local initiatives target revitalization zones or provide enhanced benefits for public service workers, such as teachers and first responders.
  • Eligibility criteria and assistance amounts vary by location and program specifics.

Vermont’s down payment assistance programs are tailored to reduce financial barriers and make homeownership attainable for a wide range of buyers. Whether you’re purchasing your first home or upgrading, these resources can help you achieve your dream of owning a home in the Green Mountain State.