Vermont Down Payment Assistance
Hikers, skiers, and nature lovers all love Vermont! However, rising real estate prices can make home ownership in Vermont difficult. Luckily, local and national programs exist that offer down payment assistance and grants to qualified applicants. The Vermont Housing and Finance Association and the Champlain Housing Trust are two organizations that offer such programs.
If you're thinking about purchasing a home in Vermont, you may have options to help with the down payment or closing costs. Click on any program below to learn more and see if it can help with your home purchase!
Vermont Housing and Finance Association ASSIST Loan
The Vermont Housing and Finance Association, also known as the VHFA, provides an ASSIST loan to eligible individuals also utilizing a VHFA mortgage.
As much as $5,000 is offered as a second mortgage with 0% interest and deferred payment. The loan amount only becomes due once the property is refinanced or sold.
This assistance can be used in a variety of ways to help with closing costs, the down payment, or other expenses associated with obtaining a mortgage. Please note that the amount of assistance offered cannot be more than the total combined closing cost and down payment.
Only first-time homebuyers who meet defined asset limitations will be eligible for this program.
All applicants must finish approved homebuyer education.
Manufactured Housing Down Payment Loan Programs
Two loans from the Champlain Housing Trust exist to help homeowners or homebuyers move into or convert to energy efficient homes. These loans are only applicable to primary residences, but can be located anywhere in Vermont.
Applicants are required to undergo homebuyer education and counseling before they will be approved, and they must have enough equity in the property to secure the loan. Houses used to secure the loan cannot be found in a FEMA Special Flood Hazard Area.
Applicants will be examined for their credit worthiness and debt history. In the event that an applicant has more than $60,000 in liquid assists, further examination may be required.
Applicants also have to fall within defined income limits, which depend on location and household size.
The first loan offered is for Energy Star Rated Manufactured Homes and is in the amount of $27,500. This loan is meant to help the borrower either buy a new Energy Star Rated Manufactured Home or replace an old manufactured home with a new Energy Star Rated one. The property can be either owned land or in a mobile house park. Applicants must be able to put forth a minimum of $2,500 towards the transaction from their own funds. This loan will require an inspection of the home installation.
The second type of loan is for Vermod High Performance Homes and is for an amount of $35,000. Like the other loan type, applicants must be able to put forth no less than $2,500. This loan is meant for Zero Energy Modular (ZEM) homes, which can be either in a mobile house park or on owned land.
