Vermont first-time homebuyer grants and down payment assistance (2026)

Three VHFA mortgages and the five-county first-time rule

MOVE is often VHFA’s lowest rate. On Oct. 20, 2026 it was 6.750% for FHA, USDA, VA, Fannie Mae and Freddie Mac loans alike. MOVE MCC adds a Mortgage Credit Certificate at a higher rate: 7.000% on government loans and 7.250% on conventional ones. Advantage carried the same rates as MOVE MCC that day, but it has VHFA’s highest limits ⁠⁵⁠¹.

The federal three-year first-time rule applies to MOVE, MOVE MCC and the stand-alone MCC only in Addison, Bennington, Chittenden, Grand Isle and Windsor counties. There, no borrower or spouse may have owned a principal residence in the 36 months before applying. Buyers in Vermont’s other nine counties are exempt, and so are veterans with a DD-214 ⁠². Advantage has no first-time rule unless you add VHFA down payment help ⁠¹.

ASSIST and the First-Generation grant are stricter than any of these. Every borrower and any spouse must be a “true” first-time buyer who has never owned a principal residence anywhere. That includes a co-op share or a manufactured home ⁠².

VHFA counts all income of each borrower and of a spouse not on the loan, plus any raise expected within 60 days after closing. It must stay within the limit from reservation until 60 days after closing ⁠².

VHFA’s 2026 income and price limits by county

Scroll the table sideways to see every column.

Advantage uses one statewide limit: $150,000 for 1-2 people, $180,000 for 3 or more, and a $550,000 price cap for 1-2 units ⁠⁴.

Find your county in the table above or on VHFA’s limits page. Your lender then confirms the figure with VHFA’s Federal Act Income and Acquisition Cost Worksheet ⁠⁴⁠². Property rules also apply. Homes on more than 5 acres, co-ops and single-wide mobile homes are ineligible. Under MOVE and MOVE MCC, a duplex or a home with an attached accessory unit must have been lived in for at least five years ⁠².

ASSIST: the $10,000 loan you repay when you sell or refinance

ASSIST is a second (or third or fourth) mortgage held and serviced by VHFA itself. It carries 0% interest and no payments. It is never forgiven. The full balance is due if you sell or transfer the home, add someone to the title, refinance, or pay off the MOVE first mortgage ⁠². The maximum is $10,000 at every income level. ASSIST works with Fannie Mae, Freddie Mac, FHA and USDA loans. It cannot be used with a VA loan ⁠²⁠³.

ASSIST is applied last, so the amount often comes in under $10,000. Gifts, seller credits, outside grants, Shared Equity Assistance and the First-Generation grant all count first. ASSIST then covers only the down payment and eligible closing costs that remain, and combined loans may not exceed 105% of the home’s value ⁠². Eligible costs include an inspection, homeowner’s insurance and the education fee. ASSIST cannot pay per-diem interest, pay off debts or cover a gap between the appraisal and a higher price, and you get no cash back beyond itemized costs you paid outside closing ⁠².

Lenders may not charge origination, processing or recording fees on any VHFA assistance ⁠².

Stacking the $15,000 First-Generation grant and the $5,000 shared equity grant

The First Generation Homebuyer Grant is $15,000. It is a true grant, never repaid, and you must take the full amount ⁠²⁠³. On top of the never-owned rule and the $20,000 asset cap, one person taking title must sign a statement that one of these is true ⁠²:

• their parents or legal guardians never owned a home during the buyer’s lifetime;
• their parents lost a home to foreclosure, short sale or deed-in-lieu and have not owned since; or
• a borrower was at some point placed in foster care.

Unlike ASSIST, the grant works with VA loans ⁠². VHFA’s Shared Equity Assistance is a separate $5,000 grant. It applies only when a Vermont housing trust has put shared equity into the home and the mortgage is a Fannie Mae or Freddie Mac community land trust or resale-restricted loan. FHA loans are excluded ⁠²⁠³.

The order is fixed: outside money first, then the $5,000 grant, then the $15,000 grant, then ASSIST ⁠². So one first-time buyer could combine $15,000 in grant money with up to $10,000 of ASSIST. VHFA says the two grants may be tax-free but tells buyers to ask a tax preparer. ASSIST is a loan, so it is not income ⁠³.

Shared equity homes through Champlain Housing Trust and other land trusts

Vermont’s biggest subsidies come through nonprofit housing trusts, not cities or counties. The Vermont Housing & Conservation Board gives these trusts shared equity grants of up to $80,000 or 35% of the purchase price, depending on income and need ⁠¹¹. In exchange, the price is cut by the grant amount and the grant stays with the home. When you sell, you keep 25% of any increase in value, plus the principal you paid down and approved improvements. Buyers must put in at least $1,500 of their own cash ⁠¹¹.

Champlain Housing Trust (CHT) runs the program in northwest Vermont. It says state and federal funds pay a down payment of 20% to 30% of the home’s market value. You still pay closing costs of about $10,000 to $12,000, including a $2,000 deposit at contract and a $1,500 CHT fee. Homes are offered one at a time through a points-based buyer selection ⁠¹². CHT scheduled Shared Equity Informational Meetings on Oct. 23, Nov. 3 and Nov. 20, 2026. Ask about available homes; CHT says inventory changes and is busiest in spring and summer ⁠¹². Elsewhere, VHFA directs buyers to a Vermont NeighborWorks HomeOwnership Center ⁠¹³.

Burlington, the largest city, does not run its own buyer assistance program. Its federal HOME funds go to housing developments ⁠¹⁵. Two other routes exist. VHFA’s MIHDP offers a subsidy tied to specific new units in approved developments, recorded as a lien on the home ⁠¹⁴. Through VHFA lenders that are bank members, the Federal Home Loan Bank of Boston’s Equity Builder and Housing Our Workforce grants are first-come, first-served ⁠¹³.

MOVE MCC, the stand-alone certificate and the nine-year recapture tax

VHFA still issues Mortgage Credit Certificates. You get one automatically with MOVE MCC, or a participating lender can attach a stand-alone MCC to its own first mortgage ⁠¹. The credit is up to 50% of the mortgage interest you pay each year, capped at $2,000. Credit you cannot use carries forward for up to three years ⁠². VHFA charges nothing for an MCC with MOVE MCC. A stand-alone MCC costs a $500 VHFA fee, plus up to $500 in lender processing ⁠². The certificate lasts as long as you live in the home and keep the original loan. It is not reissued after a refinance ⁠¹⁠².

MOVE, MOVE MCC and stand-alone MCC buyers can owe federal recapture tax. It applies if all three of these happen: you sell within nine years, you make a profit, and your income is above the threshold for that year. The tax is the smallest of 6.25% of the original loan, half the profit, or the IRS Form 8828 figure ⁠². VHFA reimburses recapture paid on a MOVE loan if you apply by Dec. 31 of the year after you paid it. MCC holders may not qualify ⁠². Advantage carries no recapture tax ⁠².

Credit scores and DTI set by U.S. Bank, not VHFA

VHFA’s guide says the agency sets no credit score or debt-to-income limits. U.S. Bank’s product guides set them ⁠². Manual underwriting is not allowed, so the automated system must approve the loan ⁠⁶⁠⁷.

Scroll the table sideways to see every column.

Government figures are from U.S. Bank’s Sept. 26, 2025 guide; conventional figures are from its Jan. 26, 2026 guide. A stricter agency or mortgage insurer rule overrides them ⁠⁶⁠⁷.

VHFA borrowers on MOVE, MOVE MCC and Advantage also pay less Vermont property transfer tax: 0% on the first $250,000 of the price and 1.47% above that. The benefit does not apply to a stand-alone MCC ⁠².

From lender call to closing: applying for VHFA help

1. Call a participating lender

   VHFA lists its top lenders, including Union Bank, Vermont Mortgage Company, EastRise Credit Union, CMG Home Loans, Guild Mortgage, Vermont Federal Credit Union and Fairway, plus others. Ask each one which VHFA programs it offers, since not all lenders offer every program ⁠⁹⁠¹⁰.

2. Check your county limit and buyer status

   Compare your household income and target price with the July 1, 2026 table. For ASSIST or the First-Generation grant, confirm that nobody on the loan or their spouse has ever owned a home and that liquid assets stay under $20,000 ⁠⁴⁠³.

3. Take an approved course

   At least one borrower must finish homebuyer education within 18 months before closing. Fannie Mae HomeView is free and online. Vermont NeighborWorks HomeOwnership Centers offer in-person classes and counseling, with costs that vary. eHomeAmerica and Framework are also accepted. The rule is waived if a borrower owned a home in the past three years. Shared equity buyers usually need the trust’s own workshop and counseling too ⁠⁸⁠²⁠¹².

4. Gather documents

   Each borrower and spouse needs federal tax returns for the two latest years, the last two months of statements for every liquid account, and gift letters. Anyone with a history of not filing taxes is ineligible. Documents may be no more than 90 days old when VHFA receives them ⁠².

5. Reserve and pass compliance review

   Your lender reserves the loan in VHFA’s portal, which locks the rate through closing. VHFA then reviews files in the order received and issues a Compliance Conditional Commitment ⁠².

6. Close and move in

   You must move in within 60 days. VHFA issues any MCC within 30 days after closing, so keep it and the recapture disclosure for future tax returns and a sale ⁠².

If you are ineligible for one program, the lender can switch the reservation to another ⁠². Compare other states on the first-time homebuyer grants page, or see more help on the Vermont page.