Homeownership activity
Fiscal year 2010
VHFA's Single Family Programs experienced a significant reduction in activity in FY2010. This can be attributed to financial market conditions. VHFA was unable to sell bonds at interest rates necessary to offer a competitive rate on its mortgages.
In addition, USDA Rural Development — the primary source of loan guarantees for VHFA borrowers without a 20% downpayment — ran out of guarantee authority in May 2010. As a result, some loans were unable to close until authority was reinstated after the end of FY10 and many potential buyers were locked out of the market.
For those borrowers VHFA was able to help, the Agency maintained its quality underwriting and focus on lower income households as shown in the statistics below.
- VHFA's single-family mortgage activity continued to contract in FY2010 in response to reduced home buying statewide and the recession's effects on the funds available to housing finance agencies.
- In FY2010, VHFA helped 114 households purchase homes in Vermont through its conventional, government-guaranteed and direct loan programs. Mortgages provided during FY2010 totaled approximately $15.2 million.
VHFA borrower incomes as a percentage of the area median income (AMI)
| Household income | Percentage of borrowers |
|---|---|
| More than 100% | 18% |
| 81% to 100% | 30% |
| 51% to 80% | 44% |
| At or below 50% | 8% |
VHFA's average borrower profile
| Income | $50,407 |
| Mortgage amount | $132,897 |
| Home price | $150,306 |
East Branch Condominiums, Manchester
VHFA FY2010 homeownership program activity
| Program | Purchases | Loan volume |
|---|---|---|
| Conventional | 40 | $4,891,432 |
| Government Guaranteed | 56 | $8,141,248 |
| Direct Home Loan | 18 | $2,117,594 |
State tax credits: VHFA also provided $115,000 in state tax credits, generating an estimated $506,000 in equity for nine homeownership units in four projects:
Homeownership state tax credit activity
| Project name | Town | Units | State tax credits |
|---|---|---|---|
| East Branch Farms | Manchester | 2 | $15,000 |
| Hagan Hill | Charlotte | 4 | $40,000 |
| Cascades | Winooski | 2 | $40,000 |
| River Station | Montpelier | 1 | $20,000 |
