Vermont COVID Emergency Mortgage Assistance Program
- The Vermont COVID Emergency Mortgage Assistance Program was established using coronavirus relief funds allocated to the State of Vermont to provide financial assistance to stabilize low- and moderate-income homeowners in Vermont. VHFA is the administrator of funds dedicated to mortgage assistance.
- This program is for persons who are behind on their home mortgages. If you are a renter, please contact the Vermont State Housing Authority by phone at 802-828-2040 or 802-828-1650 or 802-828-5596, to discuss obtaining help with your rental payments.
- VHFA intends to prioritize applicants with lower incomes, but given the limited amount of funds and the limited time to review applications and distribute awards there is no assurance that any individual application will be funded.
- Applications will be accepted between July 13 and August 31 (this period may be shortened with little to no notice if application volume exceeds expectations).
- VHFA will review and verify applications between September 1 and September 30, and have all awards issued by October 2. If funds remain available after the initial round of eligible applications are funded, VHFA will open up a separate round of funding.
Terms of Grant
- Funds are provided as a grant paid directly to the mortgage servicer
- Mortgagor is not responsible for repaying the grant provided
- Because these funds are disaster relief funds, it is VHFA’s understanding that the amount received is not taxable and mortgagor will not receive a 1099. VHFA does not provide tax advice, however, and suggests that if you have questions about the taxable nature of a grant you discuss it with your tax adviser.
Application of Grant
- Payment directly to the servicer for the benefit of the mortgagor
- Grant will be applied for UP TO six months of delinquent mortgage payments.
- Servicer must confirm balances and agree that upon receipt of the payment, Mortgagor will no longer have any obligation for the amounts paid by the grant. Servicer confirmation is required before a grant award will be finalized. THE GRANT AMOUNT MAY NOT BE ENOUGH TO BRING THE LOAN CURRENT. THE MORTGAGOR IS RESPONSIBLE FOR ALL REMAINING PAST DUE AMOUNTS.
- You can help make sure that VHFA has the right contact information by calling your servicer and asking for the name and telephone number of the person VHFA should call about your mortgage. You can also send a Request for Information letter to your loan servicer, asking for contact information and giving your loan servicer permission to call VHFA directly to talk about your mortgage. You can find a Sample Request for Information HERE. For help completing a Request for Information, please contact Vermont Legal Aid/Legal Services at (800) 889-2047.