Down Payment Assistance
Down Payment Assistance in Vermont (2026)
Vermont homebuyers can access up to $15,000 in down payment assistance through the Vermont Housing Finance Agency (VHFA). On the state's $398,500 median home price, that covers roughly 19% of a standard 20% down payment.
New to this? Quick definitions
- DPA —
- down payment assistance. Money — as a grant or loan — that helps cover the upfront cash you'd otherwise need to buy a home.
- Grant vs. loan —
- a grant is money you never repay. A loan (forgivable, deferred, or repayable) can come with strings attached, even at 0% interest.
- Forgivable loan —
- the balance is wiped out over time if you stay in the home — but it's still a real loan until then, and selling or refinancing early can trigger repayment.
- Deferred loan (silent second) —
- a second loan on your home with no monthly payments, often called a "silent second" because you won't notice it until you sell, refinance, or pay off your first mortgage — that's when it comes due.
- AMI —
- Area Median Income. The midpoint household income for your county, used to set eligibility — programs list limits as a percentage of AMI (e.g. 80% of AMI).
- Income limit —
- the maximum household income you can earn and still qualify, based on where you live and how many people are in your household.
- Purchase price cap —
- the maximum home price a program will help you buy — homes priced above the cap don't qualify, even if your income does.
Do you likely qualify?
The ASSIST Second Mortgage caps the home purchase price at $481,176 — check that cap against homes you're considering, and the county income limit below.
Primary Program: ASSIST Second Mortgage
maximum assistance
0% interest, no monthly payments. Repaid when you sell, refinance, or pay off the first mortgage — this is sometimes called a "silent second" because you won't notice it until then.
- Administering Agency
- Vermont Housing Finance Agency (VHFA)
- Purchase Price Cap
- $481,176
How Down Payment Assistance Works
Most state DPA programs are layered on top of a first mortgage — you apply through an approved lender who originates both the primary loan and the DPA second lien at the same closing. The DPA funds reduce the cash you need upfront.
Grants
Free money — no repayment ever. Typically the smallest amounts but highest value.
Forgivable Loans
Balance forgiven after a set period (usually 3–15 years) if you stay in the home. Selling early triggers repayment.
Deferred Loans
No monthly payments. Balance due when you sell, refinance, or pay off your mortgage.
Mistakes first-time buyers make
- Assuming you don't qualify without actually checking the income limit for your county and household size.
- Treating a "forgivable" loan as free money — it can still come due in full if you sell or refinance before the forgiveness term ends.
- Stacking programs incorrectly, or assuming state and local programs combine automatically without confirming with your lender.
- Skipping the required homebuyer education course, which can delay or disqualify your application at closing.
Pro tips
- Talk to a HUD-approved housing counselor first — it's free and they know every program you may qualify for, not just the state's.
- Apply for mortgage pre-approval alongside your DPA program application; most DPA funds are disbursed through an approved lender at the same closing.
- Check local city and county programs in addition to the state program above — many are stackable and cover different costs.
- Ask exactly what triggers repayment on any loan-based assistance before you sign, not after.
Down Payment Calculator
Down Payment Planner
Vermont median pre-loaded
Your Savings Plan
Timeline
13.3 yrs
saving $500/mo
No PMI at 20% down
20% or more avoids private mortgage insurance entirely.
Estimate only — does not include investment returns on savings.
Full Calculator →What the Assistance Does on a $398,500 Vermont Home
A worked example at Vermont's median home price (Zillow Home Value Index, April 2026), using the same payment model as the Vermont salary page: a 7.03% 30-year fixed rate (Freddie Mac PMMS, week of September 24, 2026), PMI from the National MI rate card on the 10%-down case, the state's effective property-tax rate and homeowners premium, and principal, interest, tax and insurance held to 28% of gross income.
How much of the down payment it covers
A 10% down payment on a $398,500 home is $39,850, and 20% is $79,700. The $15,000 ASSIST Second Mortgage maximum covers 38% of the first and 19% of the second, leaving $24,850 of a 10% down payment to come from savings, before any closing costs.
Whether a household under the income limit can carry it
Carrying the median home takes $119,100 a year with 20% down, or $136,371 with 10% down and PMI. The first-mortgage income limit at Vermont Housing Finance Agency (VHFA) is $120,000 (MOVE/MOVE MCC, households of 1-2 persons, Caledonia, Chittenden, Essex, Franklin, Grand Isle, Lamoille, Orange, Orleans, Rutland, Windham counties; varies $110,000 (Addison, Bennington, Windsor) to $125,000 (Washington); 3+ persons $128,000-$145,000). (Vermont Housing Finance Agency, retrieved 2026-09-14) That is enough for the median home only with 20% down; with 10% down the payment needs $16,371 more income than the limit allows. At exactly $120,000, the same model supports a price of about $401,610, $3,110 above the median.
The First Mortgage and Closing Taxes This Assistance Has to Cover in Vermont
Vermont Property Transfer Tax (plus Clean Water Surcharge)
Vermont taxes the transfer of real property. A buyer's principal residence pays 0.5% on the first $200,000 and 1.47% (1.25% tax + 0.22% Clean Water Surcharge) above that; a habitable second home that is not a long-term rental pays 3.62%. (32 V.S.A. § 9602). (Vermont Department of Taxes, retrieved 2026-09-14) Under that schedule a $398,500 sale owes $3,918, which the statute puts on the buyer.
Recording fees
$15.00 per page for recording or filing any document with the town clerk (statewide); $15.00 to record/file a property transfer return (Vermont General Assembly, retrieved 2026-09-14)
Vermont Housing Finance Agency (VHFA): MOVE
MOVE is the first-mortgage programme run by Vermont Housing Finance Agency (VHFA). (Vermont Housing Finance Agency, retrieved 2026-09-14) Its purchase-price limit is $450,000 (MOVE and MOVE MCC, 1-unit, all counties listed (2-unit: $500,000); as of July 1, 2026), so a $398,500 home is within it. (Vermont Housing Finance Agency, retrieved 2026-09-14) The income limit is $120,000 (MOVE/MOVE MCC, households of 1-2 persons, Caledonia, Chittenden, Essex, Franklin, Grand Isle, Lamoille, Orange, Orleans, Rutland, Windham counties; varies $110,000 (Addison, Bennington, Windsor) to $125,000 (Washington); 3+ persons $128,000-$145,000). (Vermont Housing Finance Agency, retrieved 2026-09-14) Down payment help comes through ASSIST: Up to $10,000 0% deferred loan, repaid at sale, refinance or payoff; MOVE only; borrowers must never have owned a home (separate $15,000 First Generation Homebuyer Grant for eligible buyers). (Vermont Housing Finance Agency, retrieved 2026-09-14) Minimum credit score: 640. (Vermont Housing Finance Agency, retrieved 2026-09-14)
Frequently Asked Questions
What down payment assistance is available in Vermont?
Vermont's primary DPA program is the ASSIST Second Mortgage, administered by the Vermont Housing Finance Agency (VHFA). It provides up to $15,000 as a deferred loan. 0% interest, no monthly payments. Repaid when you sell, refinance, or pay off the first mortgage — this is sometimes called a "silent second" because you won't notice it until then.
How much down payment do I need in Vermont after using DPA?
On a $398,500 home (Vermont median), a 20% down payment is $79,700. With the ASSIST Second Mortgage covering $15,000, your remaining gap would be $64,700. Many buyers combine DPA with a 3–5% conventional or FHA loan to reduce their cash needed further.
Do I have to repay Vermont down payment assistance?
0% interest, no monthly payments. Repaid when you sell, refinance, or pay off the first mortgage — this is sometimes called a "silent second" because you won't notice it until then.
Can I combine Vermont DPA with other assistance programs?
Yes — Vermont's DPA programs can generally be combined ("stacked") with local city and county assistance programs, employer homebuyer benefits, and federal programs. Check with an approved lender or HUD-approved counselor to identify all programs you qualify for.
What are the income limits for Vermont down payment assistance?
The ASSIST Second Mortgage does not publish its income limit as a single percentage of AMI; limits are set in dollars by county and household size. Check the Vermont Housing Finance Agency (VHFA) website for current limits in your area.
Related Calculators
Home Affordability Calculator
See how much home you can afford in Vermont
PMI Calculator
Estimate private mortgage insurance on lower down payments
Vermont First-Time Buyer Programs
State mortgage programs with low rates and low down payments
Mortgage Payments by Price
See full PITI costs for 8 home prices in Vermont, from $200K to $750K
What to do next
Down payment assistance is one piece of the puzzle. Here's where to go depending on where you are in the process.
Not sure if you qualify?
Check the Vermont Housing Finance Agency (VHFA) income limits above before ruling yourself out — many buyers qualify without realizing it.
Want the full true cost picture?
DPA covers the down payment, not your ongoing costs. See the true cost of owning a home in Vermont for the full monthly picture.
Ready to apply?
Most DPA funds are disbursed through an approved lender at closing — get pre-approved and ask specifically about ASSIST Second Mortgage when you apply.