Become a VHFA participating lender

• VHFA ASSIST is a loan issued for up to $5,000 that can be used for down payment and/or normal and customary closing costs. ASSIST has 0% interest and no payments, the loan is repaid when the borrower sells the home, refinances or pays off the mortgage. To be eligible borrowers must be true first-time home buyers and cannot have liquid assets (non-retirement) in excess of $30,000.
• For Freddie Mac underwritten loans only, there is an additional subsidy grant that can be applied for borrowers with Area Median Income (AMI) <80% ($1,500 grant) or <50% ($2,500 grant).

• VHFA exclusively issues Mortgage Credit Certificates (MCC) to Vermont borrowers. MCC converts up to 30% of mortgage interest paid from a tax deduction to a tax credit. A MCC tax credit reduces federal tax liability dollar for dollar, can be used even if a borrower does not itemize and can be used for the life of the first mortgage as long as the borrower resides in the home.

• There are no rate adjustments based on borrower credit profile or loan structure.

• VHFA conventional loans feature ‘charter level’ mortgage insurance premium rates without any interest rate add-ons. You choose the mortgage insurance provider and the coverage amount ranges from 6% to 18% depending on the Loan-to-Value.

• On the first $110,000 of the purchase price, the State of Vermont waives the Vermont Property Transfer Tax
• On any amount from $110,000.01 to $200,000, the State of Vermont reduces the Vermont Property Transfer Tax rate from 1.45% to 1.25%
• For a borrower purchasing a home for $200,000 = $825 savings at closing

All VHFA loans are underwritten to standard conventional or government credit policy guidelines and are paired with Fannie Mae, Freddie Mac, Rural Development, FHA or VA products. The Participating Lender is responsible for the credit and collateral underwriting and salability.

Participating Lender must possess and maintain appropriate licensing to originate mortgage loans in Vermont.

Participating Lender must have origination staff physically located in Vermont for a minimum of 12 consecutive months with production volume of at least $10 million in mortgage loan originations.

Participating Lender must maintain approval for all of the following to offer VHFA programs:

• VHFA
• U.S. Bank
• Fannie Mae or Freddie Mac
• Ginnie Mae

Participating Lender is responsible for table-funding the down payment assistance and will be reimbursed upon post-closing approval.

• VHFA will reimburse ASSIST loan proceeds upon post-closing approval
• U.S. Bank will reimburse affordable subsidy grant for Freddie Mac underwritten loans upon post-closing approval

Participating Lender must comply with annual performance requirements including:

• Fully fund and sell a minimum of 5 VHFA first mortgage loans in a calendar year
• Ensure that origination and support staff attend annual program and process training; these training sessions are scheduled throughout the year and conducted via web-sharing

1. Contact VHFA and to discuss programs and benefits in further detail and to initiate VHFA approval
2. Contact U.S. Bank lender.management@usbank.com to initiate U.S. Bank approval
3. If needed, contact Fannie Mae or Freddie Mac and Ginnie Mae to initiative approvals
4. Once steps 1 -3 are complete sign agreements with U.S. Bank and VHFA
5. Start originating VHFA loans!