Frequently Asked Questions
1. Who is VHFA and how can VHFA help me?
Vermont Housing Finance Agency (VHFA) is a non-profit organization devoted to providing affordable housing options for eligible Vermonters. Since 1974, VHFA has helped eligible Vermont homebuyers purchase a home.
2. Where do I start?
All VHFA mortgage programs are available EXCLUSIVELY through VHFA Participating Lenders located throughout the state. VHFA does not accept applications for any VHFA mortgage programs. If you are interested in applying for a VHFA program, your FIRST STEP is to contact a VHFA Participating Lender to ask if you are eligible.
3. Do all VHFA Participating Lenders offer the same programs at the same terms?
Not all VHFA Participating Lenders offer all VHFA programs. However, the VHFA programs offered by each VHFA Participating Lender have the same terms, benefits and eligibility requirements.
4. What if my lender is not on the VHFA Participating Lender List?
All VHFA mortgage programs are available EXCLUSIVELY through VHFA Participating Lenders located throughout the state. To use a VHFA mortgage program, you must first contact a VHFA Participating Lender to and ask about eligibility and how to apply.
5. Am I required to be a Vermont resident to apply for a VHFA loan?
No, but you must buy a home located in Vermont and occupy it as your primary residence for as long as you hold the VHFA mortgage you purchased the home with.
6. Do I have to be a first-time home buyer?
Not necessarily. VHFA has loan programs available for first-time homebuyers and previous homeowners. Please visit VHFA mortgage programs for first-time homebuyer eligibility requirements. If you are a current homeowner, you will be required to sell your current residence prior to receiving VHFA financing to purchase a new home.
7. Do I need a down payment for a VHFA loan?
It depends. All VHFA mortgage programs are paired with eligible 30-year fixed rate mortgages (Fannie Mae, Freddie Mac, FHA, RD, VA) that allow borrowers to put as little as 0-5% down depending on the program they qualify for.
8. Can VHFA help with down payment and closing costs?
Yes. For eligible borrowers, VHFA offers the ASSIST Program to help with down payment and closing costs. ASSIST is a 0% interest loan with no monthly payments that is repaid when the property is sold, refinanced or the mortgage is paid in full. ASSIST is available only for eligible borrowers using MOVE, MOVE MCC, or ADVANTAGE. Borrowers & non-borrowing spouses must be TRUE first-time homebuyers, and their combined liquid (non-retirement) assets must be less than $30,000. Please note, at this time VHFA ASSIST is not available VA mortgage loans. For more detail, please visit VHFA mortgage programs.
9. Are there income and purchase price limits?
All programs have income and purchase price limits. Please see Income and Purchase Price Limits for current VHFA limits.
10. What types of properties are eligible?
VHFA programs are limited to the purchase of a primary residence. Eligible property types include new or existing single-family homes, certain approved condominiums, existing two-unit duplexes and some manufactured homes. Restrictions apply based on the loan program. Co-ops, and properties on more than 15 acres are not eligible. When you contact a VHFA Participating Lender to ask for a pre-approval, let them know the type(s) of properties you are interested in, and they will help you determine eligibility for VHFA.