Down payment assistance

Down payment assistance in Vermont

2 programs can help buyers in Vermont with a down payment and closing costs. Most are for first-time buyers with moderate incomes and are used with a participating lender.

Check which programs fit your situationDown payment assistance finder

ASSIST Down Payment and Closing Cost Assistance

Open · Deferred loan

Up to $10,000

A 0% interest, non-amortizing second mortgage with no monthly payments, available only with the VHFA MOVE first mortgage. VHFA states it is not forgivable: it is repaid at sale, refinance or payoff of the first mortgage. Not available with VA loans.

Who qualifies: Borrowers and non-borrowing spouses must be true first-time homebuyers (never owned a home) with combined liquid assets under $20,000. VHFA income limits, purchase price limits and credit requirements apply (minimum credit score starts at 640; lenders may require higher).

Vermont Housing Finance Agency · Agency website → · Checked 2026-09-30

First Generation Homebuyer Program

Open · Grant

$15,000

A $15,000 grant for down payment and closing costs with no repayment, available with a VHFA first mortgage. It can be combined with ASSIST. Grants are given first-come, first-served while funds last.

Who qualifies: All borrowers and non-borrowing spouses must be true first-time homebuyers with combined liquid assets under $20,000. At least one person taking title must have parents or legal guardians who never owned a home (or lost one to foreclosure and have not owned again), or must have been in foster care. Other VHFA credit, income, asset and property requirements apply.

Vermont Housing Finance Agency (VHFA) · Agency website → · Checked 2026-09-30

How assistance usually works

Most programs are a second loan with no monthly payment that is forgiven over time or repaid when you sell or refinance, and some are grants. You usually need a program first mortgage from a participating lender, a homebuyer education course and income under the program’s limit. Apply before you make offers, so your pre-approval reflects the help.

More for Vermont

Vermont closing costs Vermont property taxes Where can I afford to buy in Vermont?Down payment timeline

Programs change often; confirm the details with the agency.