Frequently asked questions (FAQ)

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

  1. What is VHFA?
    VHFA is non-profit, provider of mortgage money, not a direct lender. VHFA sells bonds to obtain money to make low-rate mortgage loans to eligible Vermonters through a network of participating lenders.
  2. How do I apply for a VHFA home loan?
    You must apply through a VHFA participating lender. There's a list of participating lenders — as well as our handy "Four simple steps to a VHFA mortgage" feature — on each home loan program page: Government Guaranteed, Conventional and Direct Home Loan.
  3. Do I have to apply for a VHFA home loan through a VHFA participating lender?
    Yes. Only VHFA participating lenders offer VHFA home loans and process your application.
  4. Is the VHFA program different for each lender?
    No. VHFA's programs and rates are the same regardless of which participating lender you choose.
  5. Do I have to be a Vermont resident to apply for a VHFA home loan?
    No, but you must reside in the Vermont property you buy with your VHFA home loan as your primary residence for as long as you have your VHFA mortgage.
  6. Do I need a downpayment for a VHFA loan?
    Not always. If you're eligible for a VHFA no downpayment program you do not need a downpayment. Refer to a home loan program page: Government Guaranteed, Conventional and Direct Home Loan.
  7. Do I need good credit?
    You must have an acceptable level of credit and a good payment history. The participating lender you work with will determine if your credit is acceptable.
  8. Do I have to be a first-time home buyer?
    Not necessarily. You cannot have owned a property in the past three years only if you're purchasing a home in Addison, Bennington, Chittenden, Grand Isle or Windsor County. (Refer to a home loan program for details: Government Guaranteed, Conventional and Direct Home Loan). If you're buying a property in any other Vermont county, there's no restriction for past home ownership.
  9. Are there limits for income and the price of the property?
    Yes. The income of all borrowers and the purchase price of the property must be within VHFA's limits that are in effect at the time of your application. (See Income and purchase price limits.) VHFA does not re-verify your income after you close your loan.
  10. What type of property can I purchase?
    New or existing single-family homes or condominiums and existing two-family homes. Refer to a home loan program for details on the property types eligible for that program: Government Guaranteed, Conventional or Direct Home Loan.