Down Payment Assistance Programs in Vermont 2026: Grants, Loans & How to Qualify
Vermont’s tight housing supply keeps prices firm, and the down payment is where many first-time buyers stall. The statewide median sale price reached $442,428 in May 2026, up 2.3% year over year (Redfin). At that price the FHA minimum of 3.5% down is about $15,485. The Vermont Housing Finance Agency (VHFA) offers down payment assistance and grants that pair with its MOVE and ADVANTAGE first mortgages.
Down payment math for Vermont
| Loan type | Down payment | On the $442,428 median |
|---|---|---|
| FHA (3.5%) | 3.5% | ~$15,485 |
| Conventional (3%) | 3% | ~$13,273 |
| Conventional (5%) | 5% | ~$22,121 |
| VA / USDA | 0% | $0 (if eligible) |
Vermont’s FHA loan limit is the national floor of $541,287 for a one-unit home across 13 of 14 counties in 2026; Chittenden County (the Burlington–South Burlington metro) carries a higher limit. Much of rural Vermont also qualifies for zero-down USDA financing.
VHFA down payment assistance programs
- ASSIST — up to $10,000 delivered as a 0% deferred, non-amortizing second mortgage, repaid only when you sell, refinance, or pay off the home. It must be paired with a VHFA MOVE first mortgage. Eligibility requires that you have never owned a home and hold under $20,000 in combined liquid assets.
- First Generation Homebuyer Grant — a $15,000 grant toward down payment and closing costs. At least one buyer on title must have a foster-care background or parents who never owned a home or lost one to foreclosure, with the same never-owned and liquid-asset tests.
- MOVE — VHFA’s core first mortgage for first-time buyers, with income and purchase-price limits and homebuyer education.
- MOVE MCC — a MOVE loan paired with a Mortgage Credit Certificate worth up to $2,000 a year in federal tax credit.
- ADVANTAGE — a first mortgage with the highest income and price limits, for buyers who may not qualify for MOVE.
For the participating-lender list and asset tests, see our Vermont first-time home buyer programs guide.
How to qualify, step by step
- Confirm you meet the never-owned-a-home test and the under-$20,000 liquid-asset limit for ASSIST or the First Generation grant.
- Check your credit — VHFA generally looks for around 640 or higher.
- Complete VHFA homebuyer education.
- Get pre-approved with a VHFA participating lender, who pairs ASSIST or the grant with your MOVE FHA loan or conventional loan.
- Budget for closing costs in Vermont; the First Generation grant can be applied to these.
To estimate a monthly payment, use our mortgage calculator.
Frequently asked questions
How much down payment help can I get in Vermont?
ASSIST offers up to $10,000, and the First Generation Homebuyer Grant offers $15,000 for buyers who qualify.
Do I repay VHFA ASSIST?
ASSIST is a 0% deferred second mortgage with no monthly payment, repaid when you sell, refinance, or pay off the home.
What are the asset limits?
Both ASSIST and the First Generation grant require under $20,000 in combined liquid assets.
Who qualifies for the First Generation grant?
Buyers who have never owned a home and whose parents never owned or lost a home to foreclosure, or who have a foster-care background.
Can I use assistance with an FHA loan?
Yes. VHFA pairs assistance with its MOVE first mortgage, which can be an FHA, conventional, VA, or USDA loan.
How does Vermont compare to nearby states?
Compare New Hampshire, Maine, Massachusetts, New York, Rhode Island, and Connecticut.