Down Payment Assistance Programs for First-Time Homebuyers in Vermont

Vermont is known for its breathtaking landscapes whereas outdoor activities and charming towns have made it a popular destination spot for tourists. Thousands of people visit attractions like the Green Mountains or quaint villages such as Woodstock and enjoy local delicacies such as maple syrup and artisan cheeses.

You may feel tempted to stay in Vermont but be reminded that the state is facing a housing crisis. The rising costs of homes along with limited inventory have made homeownership difficult for citizens, especially first-time buyers. The home prices saw a staggering increase of 12.8%, which is the nation’s highest and reflects the affordability gap.

However, there are several down payment assistance programs that relieve the financial burden caused when purchasing homes. The coverage is aimed to ease the pressure on individuals who want to turn their dream of becoming a homeowner into reality.

Looking for Assistance in a Specific Part of Vermont?

This page contains a comprehensive overview of different down payment assistance programs in different areas of Vermont. You can click on the links below to get full details of the sponsor, assistance type, and amount along with the eligibility criteria.

Down Payment Assistance in Vermont

Vermont is gripped by a housing crisis with 53% of renters cite their inability to afford a down payment as the primary reason for continuing to rent. This is why the state of Vermont and other organizations have implemented certain programs which make homeownership more attainable through loans, and forgivable grants. Here is a complete overview of these programs:

Vermont Housing Finance Agency ASSIST Program

The ASSIST program offered by the Vermont Housing Finance Agency (VHFA) provides financial support to first-time homebuyers in Vermont. The loan will only be repaid if the homeowner sells the property or refinances their first mortgage.

Fundamentals

Assistance Type: No-interest, deferred loan

Sponsor: Vermont Housing Finance Agency (VHFA)

Assistance Amount: $15,000 (at maximum)

Eligibility Requirements

• Applicants who have owned/purchased a home in the past three years are not eligible for the program.
• Borrowers should meet VHFA’s income and purchase price limits to qualify for assistance
• Borrowers and any non-borrowing spouses with liquid assets valued higher than $30,000 are ineligible for the program.
• The applicant has to complete a homebuyer education course and present a certificate before closing on the loan.

NeighborWorks of Western Vermont Down Payment Assistance Loan

NeighborWorks of Western Vermont Down Payment Assistance Loan Program offers financial assistance to help cover down payments and closing costs to deserving homebuyers.

Fundamentals

• Assistance Type: Second mortgage
• Sponsor: NeighborWorks of Western Vermont (NWWVT)
• Assistance Amount: $50,000 (at maximum)

Eligibility Requirement

• The applicant must be a first-time Homebuyer, meaning that they haven’t purchased a property or made it their primary residence in the past three years.
• Borrowers have to meet certain income limits, determined by the program guidelines. It may vary based on the location or household size.
• The mortgage for the loan should only be acquired through a NWWVT-approved partnering lender.

Vermont Down Payment Assistance Program FAQs

Are there any prepayment penalties in the NWWVT Down Payment Assistance Loan Program?

No, there are no prepayment penalties and borrowers can pay off the loan early if they desire.

Do borrowers have to complete a homebuyer education after securing funding through program Vermont Housing Finance Agency ASSIST Program?

Yes, applicants are required to complete a homebuyer as per the program’s terms and conditions.

Disclaimer: This article is for informational purposes only and should not be considered as legal or financial advice. Please consult an attorney, mortgage lender, or CPA for guidance on your specific situation.