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Frequently-asked questions

Answers to 10 of the most common questions about financing a home with a VHFA loan.

1. What is VHFA?

 Vermont Housing Finance Agency (VHFA) provides financing opportunities to meet affordable housing needs for low- and moderate-income Vermonters.

2. How do I apply for a VHFA home loan?

Participating Lenders receive and review your mortgage application to determine if you are eligible for a VHFA loan. Learn how to apply for a VHFA loan.

3. What if my lender is not on the Participating Lender list?

VHFA loans are only available through Participating Lenders.  If your lender is not participating in our program, they are not eligible to provide you with a VHFA loan product.

4. Is the VHFA program different for each lender?

Yes and no. VHFA's loan program options are the same for each lender. Not all lenders choose to offer each option VHFA provides. Get more information about our Participating Lenders.

5. Am I required to be a Vermont resident to apply for a VHFA loan?

No, but you must buy a home that is in Vermont, and occupy it as your primary residence.

6. Do I need a down payment for a VHFA loan?

Not always. VHFA program options may allow up to 100% financing. VHFA also offers down payment and closing assistance for eligible borrowers. Learn more about the down payment requirements of our loans and products.

7. What about my credit score and history? How do I know if I am eligible?

To answer this question, you will need to apply to a Participating Lender. Your loan originator will review your credit and financial information to determine if you are eligible for a VHFA loan.

8. Do I have to be a first-time home buyer?

Not necessarily. VHFA has loans available for both first-time homebuyers and Vermonters who have previously owned a home. If you are a current homeowner, you will be required to sell your current residence prior to using a VHFA program to purchase your new home.

9. Are there income and purchase price limits for VHFA loans?

Yes. The limits for both income and purchase price may be determined by either the VHFA program you work through or the county in which you are purchasing. The income of all borrowers and spouses must be within the current income & purchase price limits set by VHFA. 

10. What types of properties are eligible?

New or existing single-family homes, eligible condominiums and existing two-family homes.