New 3.875% interest rate extends home buying opportunities

By: Leslie Black-Plumeau

visionToday marked VHFA’s unprecedented release of $20 million in financing for Vermont home buyers with a new, historically low, fixed interest rate of 3.875% for 30-year mortgages.  The low rate is available for VHFA’s conventional and government loan programs, and is available exclusively through VHFA participating lenders.

“This rate helps us extend the dream of homeownership to more people,” said VHFA Executive Director Sarah Carpenter. “Although we are always finding new ways to offer the lowest rates we can, we may not be able to offer this rate for long due to the limited size of the funding pool,” Carpenter continued.

The traditional benefits of a VHFA mortgage make these new, low-rate mortgages even more affordable for qualified buyers.

VHFA borrowers always save up to $625 at closing because the first $110,000 of the property purchase price is exempt from the Vermont Property Transfer Tax. In addition, VHFA loans carry no loan level pricing adjustments or loan delivery fees from Fannie Mae or Freddie Mac. They also have lower mortgage insurance coverage requirements, lower premiums and expanded eligibility.

More information on VHFA’s new low rates, other programs, and local participating lenders are available on its website at