Vermont First-Time Home Buyer Programs and Assistance

Vermont first-time buyer programs open now

Vermont Housing Finance Agency (VHFA) is the state's housing finance agency (homebuyer programs page). It runs 7 down payment or closing-cost assistance programs alongside 2 below-market first mortgages. For MOVE and MOVE MCC, borrowers and non-borrowing spouses must not have owned a home within the last 3 years IF purchasing in Addison, Bennington, Chittenden, Grand Isle, or Windsor county;

• VHFA MOVE. Terms: Often VHFA's lowest interest rate; down payment as low as 0%-5%; savings up to $1,735 at closing; income limits, purchase price limits, and (county-dependent) first-time homebuyer requirements apply; minimum credit score 640-680 depending on program Purchase price limit: Varies; see VHFA Program Income Limits page Homebuyer education: required Program page
• VHFA MOVE MCC. Terms: Mortgage Credit Certificate issued at closing; income limits, purchase price limits, and (county-dependent) first-time homebuyer requirements apply; minimum credit score 640-680 depending on program Purchase price limit: Varies; see VHFA Program Income Limits page Homebuyer education: required Program page
• VHFA ADVANTAGE. Terms: VHFA's highest income and purchase price limits; no first-time homebuyer requirement unless using a VHFA down payment assistance program; minimum credit score 640-680 depending on program Purchase price limit: Varies (highest of VHFA's programs); see VHFA Program Income Limits page Homebuyer education: required Program page
• VHFA ASSIST. Terms: 0% interest, deferred loan with no monthly payments; repaid at sale, refinance, or mortgage payoff Must pair with: VHFA MOVE (exclusively) Homebuyer education: required Program page
• VHFA First Generation Homebuyer Grant. Terms: Grant for down payment and closing costs Must pair with: VHFA MOVE, MOVE MCC, or ADVANTAGE Homebuyer education: required Program page
• Mortgage Credit Certificate (MCC) - standalone attach option. Terms: Federal tax credit up to 50% of mortgage interest paid annually, capped at $2,000/year; available for as long as the borrower lives in the home and holds the original first mortgage Homebuyer education: required Program page
• Shared Equity Down Payment Grant. Terms: Down payment grant that lowers purchase price and monthly payment; obtained by buying a home through a Vermont NeighborWorks HomeOwnership Center Where: statewide (via regional VT NeighborWorks HomeOwnership Centers) Program page
• Equity Builder Down Payment Assistance (FHLBank Boston). Terms: Down payment and closing cost assistance through a participating VT member lender of the Federal Home Loan Bank of Boston Program page
• Housing Our Workforce (HOW) Grant (FHLBank Boston). Terms: Matching grant program to help lower down payment and closing costs, through a participating VT member lender Program page

Mortgage credit certificate in Vermont

Vermont offers a mortgage credit certificate (VHFA Mortgage Credit Certificate (MCC)), a federal tax credit worth 50% of the mortgage interest you pay each year, for as long as you live in the home. MCC program page

City and county programs in Vermont

Local governments run their own down payment funds on top of the state programs. These can be combined with a state loan in most cases; each has its own income limit and area.

• Champlain Housing Trust (serving Burlington and Chittenden/Franklin/Grand Isle Counties, VT's largest metro area): Shared Equity Homeownership Program. Program. Official page

How little you can put down

You do not need 20% down. Conventional loans go as low as 3% (through programs like Fannie Mae HomeReady and Freddie Mac Home Possible), FHA loans start at 3.5%, and VA and USDA loans can require nothing down. On Vermont's median-priced home (about $438,400), 3% down is roughly $13,152. Putting 20% down lets you skip private mortgage insurance, but most first-time buyers put down far less.

Who counts as a first-time buyer

For most programs, a first-time buyer is anyone who has not owned a primary residence in the last three years, so many repeat buyers qualify again. Vermont programs often add income and purchase-price limits, which is another reason to confirm the details with Vermont Housing Finance Agency (VHFA).

Stack a buyer rebate on top in Vermont

Down-payment assistance and a buyer commission rebate are two different things, and in Vermont you can use both. Assistance from Vermont Housing Finance Agency (VHFA) helps with your down payment and closing costs; a buyer rebate returns about 2% of the price to you at closing (roughly $8,768 on a median-priced home), which can cover much of your closing bill.

See Vermont buyer rebates →   See Vermont closing costs →

Official sources

• Vermont Housing Finance Agency (VHFA)
• Other Special Programs (non-VHFA) - VHFA.org
• Champlain Housing Trust
• Consumer Financial Protection Bureau: down payment options and how to prepare

Vermont program details last verified against Vermont Housing Finance Agency (VHFA) on September 11, 2026.