VHFA lowers rates to help homebuyers

By: Eric Hoffman

Homebuyers need every advantage they can get in today’s COVID-impacted housing market. To help homebuyers in Vermont, VHFA is temporarily lowering rates for homebuyers who use VHFA MOVE, and VHFA will not charge a premium for buyers using VHFA MOVE with ASSIST down payment and closing cost assistance. These lower rates will be for a limited time only while funds last.

Lower rates increase buying power

Interest rates affect the amount that a buyer can afford to borrow and the monthly payment they will pay after purchase. For example, if a borrower wants to pay no more than $1,500 for a monthly payment and uses a mortgage at 3.5%, then they could afford to purchase a home for approximately $211,341. At 2.5%, that same borrower could afford to purchase a home for $229,433 and still pay $1,500 per month. That is almost a $20,000 difference! Here is a table to help illustrate the relationship between interest rates and affordability:

Interest rate v. affordability

Interest Rate

$1,500 Monthly Payment*











*Assumes 3% down payment. Monthly House Payment includes 2.0% annual property tax, monthly homeowner insurance $60, and mortgage insurance (MI).

VHFA has other benefits too

In addition to low rates, VHFA offers other benefits for eligible homebuyers, including loan options that require as little as 0% down, savings up to $825 on Vermont Property Transfer Tax at closing, and up to $5,000 in down payment and closing cost assistance when using VHFA ASSIST.

Talk to a participating lender

VHFA programs are available exclusively through our participating lenders located throughout Vermont. For any borrower interested in VHFA, the first step is to contact a VHFA participating and ask for a pre-approval. To find a list of lenders and loan officers, please visit vhfa.org/homebuyers/lenders

For rates, eligibility and other program information please visit www.vhfa.org/homebuyers or email us at vhfahomeownership@vhfa.org.