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Mortgage loan options

VHFA offers a variety of mortgage loan options for Vermonters purchasing a home.  A Participating Lender can review program options with you in detail, determine your eligibility and help you choose the right program. 

All VHFA first mortgage programs may be combined with a VHFA ASSIST Second Mortgage.  An ASSIST loan provides up to $5,000 at a 0% interest rate to help with down payment and closing costs. 

VHFA mortgage programs are for purchase of an eligibility primary residence.  VHFA does not offer refinance transactions.  Program terms are subject to change and availability.

MOVE

The MOVE program offers homebuyers VHFA’s lowest interest rate. Benefits and eligibility of the MOVE Program are:

  • Low interest rates
  • Low down payment options
  • Lower monthly mortgage insurance payments
  • Pre-purchase homebuyer education is required prior to the loan closing
  • Savings of up to $825 on the Vermont Property Transfer Tax
  • Income limits and purchase price limits set by County and household size
  • While most counties have no first-time buyer requirement, if you are buying in Addison, Bennington, Chittenden, Grand Isle or Windsor counties you cannot have owned property in the past 36 months

Advantage

The Advantage program ensures more Vermonters than ever before are eligible for VHFA mortgage loans. Benefits and eligibility requirements are:

  • No first-time homebuyer requirement
  • Low down payment options
  • Lower monthly mortgage insurance payments
  • Pre-purchase homebuyer education is required prior to the loan closing
  • Savings of up to $825 on the Vermont Property Transfer Tax
  • No limit on purchase price but has a statewide income limit

Due to the proposed tax reform bill which eliminates Mortgage Credit Certificates, all loans with Mortgage Credit Certificates must close on or before December 31, 2017.  A Mortgage Credit Certificate may not be issued for any loan closed after December 31, 2017.

MOVE MCC

MOVE MCC is the VHFA mortgage option that allows you to combine a VHFA first mortgage loan with a Mortgage Credit Certificate (MCC).  The program allows you to save on your mortgage for years to come because a MCC allows a portion of your mortgage interest to be used as a tax credit, which may increase your annual tax benefit.  Benefits and eligibility requirements of the MOVE MCC program are:

  • Low down payment options
  • Lower monthly mortgage insurance payments
  • Savings of up to $825 on the Vermont Property Transfer Tax
  • Pre-purchase homebuyer education is required prior to the loan closing
  • May create a tax credit up to 20% of the annual mortgage interest paid each year over the life of your mortgage
  • Income limits and purchase price limits set by County and household size
  • While most counties have no first-time buyer requirement, if you are buying in Addison, Bennington, Chittenden, Grand Isle or Windsor counties you cannot have owned property in the past 36 months

ASSIST - Down Payment and Closing Cost Assistance

The ASSIST program can help Vermonters buying their first home overcome the hurdle of having sufficient cash for closing costs associated with a first mortgage.   The amount of an ASSIST loan cannot exceed the amount of your actual closing costs and required down payment related to the first mortgage.  Benefits and eligibility of the ASSIST Program are:

  • Only available with a VHFA first mortgage
  • 0% interest rate with no monthly payments
  • Up to $5,000 for down payment and closing costs
  • Funds are provided in the form of a second mortgage
  • Readily accessible assets such as checking, savings and non-retirement investment accounts cannot exceed $30,000
  • Repayment due only when you refinance, sell your home, or pay your mortgage in full
  • First-time buyer requirements applies statewide. To qualify, you must be purchasing your first property

Due to the proposed tax reform bill which eliminates Mortgage Credit Certificates, all loans with Mortgage Credit Certificates must close on or before December 31, 2017.  A Mortgage Credit Certificate may not be issued for any loan closed after December 31, 2017.

Mortgage Credit Certificate

Participating Lenders that offer the MOVE MCC Program may also offer a MCC with their own mortgage loan.  The benefits and eligibility requirements for the MCC apply, but the first mortgage loan will reflect the terms and conditions set by your lender.  For information on applying for a MCC with a mortgage loan not provided by VHFA, contact your Participating Lender.

  • Income limits and purchase price limits set by county and household size
  • May create a tax credit up to 20% of the annual mortgage interest paid each year over the life of your mortgage
  • Mortgage type and term is set by the lender (not VHFA)
  • While most counties have no first-time buyer requirement, if you are buying in Addison, Bennington, Chittenden, Grand Isle or Windsor counties you cannot have owned property in the past 36 months