First-Time Home Buyer Programs in Vermont 2026
Vermont’s first-time buyer programs come from the Vermont Housing Finance Agency (VHFA), and only through its participating lenders. The first mortgages are MOVE, MOVE MCC and ADVANTAGE. On top of them sit ASSIST, a 0% deferred loan of up to $10,000, and a $15,000 First Generation Homebuyer Grant.
VHFA does not lend to you directly. Its FAQ is blunt: “VHFA does not accept applications.” A bank, credit union or mortgage company on its participating lender list writes the loan on VHFA terms, and “not all VHFA Participating Lenders offer all VHFA programs.”
MOVE, MOVE MCC or ADVANTAGE: picking the VHFA first mortgage
All three are add-ons to an ordinary 30-year fixed loan. VHFA says its programs “are paired with eligible 30-year fixed rate mortgages (Fannie Mae, Freddie Mac, FHA, RD, VA) that allow borrowers to put as little as 0-5% down depending on the program they qualify for.” If you are weighing the federal loan types themselves, see our FHA requirements and VA loan guides.
| Program | How VHFA describes it | Income cap (limits as of July 1, 2026) | Price cap |
|---|---|---|---|
| MOVE | “Often VHFA’s lowest interest rate” | Set by county group. Chittenden, 3+ persons: $140,000 | $450,000 for one unit, $500,000 for two, in every county group |
| MOVE MCC | MOVE plus a Mortgage Credit Certificate “issued at closing” | Same table as MOVE | Same as MOVE |
| ADVANTAGE | “VHFA’s highest Income and Purchase Price Limits” | All counties: $150,000 for 1-2 persons, $180,000 for 3+ | $550,000, one or two units |
Income means “the combined gross annual income for all borrowers and non-borrowing spouses.” A spouse who stays off the loan still counts. For a Mortgage Credit Certificate, VHFA’s 2026 notice uses a wider household test (see the MCC section below). The MOVE income limits change by county group, from Addison through Washington, so look up your county on VHFA’s income and purchase price limits page rather than relying on the Chittenden figure. Current rates for each program are on VHFA’s rates page, with separate columns for FHA and RD, VA, Fannie Mae and Freddie Mac loans.
Who VHFA treats as a first-time buyer, county by county
For MOVE and MOVE MCC, VHFA’s program page names five counties for the ownership test: “borrowers and non-borrowing spouses must have not owned a home within last 3 years if purchasing in Addison, Bennington, Chittenden, Grand Isle, or Windsor county.”
ADVANTAGE has “No first-time homebuyer requirement unless using a VHFA down payment assistance program.” The assistance programs apply the strictest test: under both ASSIST and the First Generation grant, borrowers and non-borrowing spouses “must have NEVER owned a home.” A house you owned twenty years ago still rules you out.
Repeat buyers are welcome in some programs, with one catch. VHFA’s FAQ says, “If you are a current homeowner, you will be required to sell your current residence prior to receiving VHFA financing to purchase a new home.” You do not have to live in Vermont yet: the FAQ says you “must buy a home located in Vermont and occupy it as your primary residence.”
ASSIST is a loan, and the First Generation money is a grant
The two are easy to confuse, and they work differently. VHFA lists ASSIST as an “Up to $10,000 loan for down payment and closing assistance,” a “0% deferred loan with no monthly payments” that is “Repaid at sale, refinance, or mortgage payoff.” It is “Available exclusively with VHFA MOVE,” and “ASSIST is not eligible with a VA Loan.”
The First Generation Homebuyer Grant is a “$15,000 grant for down payment and closing costs.” It works with MOVE, MOVE MCC or ADVANTAGE. Beyond the never-owned rule, at least one person taking title must “have been placed in foster care at some point in their life, OR have parents or legal guardians who never owned or lost their home to foreclosure and have not owned again.”
Both programs cap savings too: borrowers and non-borrowing spouses must have “less than $20,000 combined liquid assets.” They can be stacked. VHFA says ASSIST “May be combined with VHFA First Generation Homebuyer grant and other down payment assistance.” How that money is spent at closing is covered in our Vermont down payment assistance guide.
The Vermont MCC, with or without a VHFA loan
VHFA’s Mortgage Credit Certificate is a “Federal tax credit up to 50% of mortgage interest paid annually, capped at $2,000 per year.” It lasts “for as long as the borrower lives in the home and holds the original first mortgage.” You don’t need a VHFA rate to get one: eligible borrowers can “attach an MCC to any non-VHFA loan that a participating lender offers.” A standalone MCC uses the same county income and price table as MOVE, but VHFA’s 2026 MCC notice counts “a household income, including all household members eighteen years or older,” so an adult child’s or roommate’s income can count too.
Selling within nine years: the recapture rule
MOVE, MOVE MCC and the MCC carry federal tax benefits, so a quick sale can cost you. VHFA says recapture applies only when all three of these happen: the “home is sold in less than nine (9) years from the purchase date,” the sale “results in a profit,” and “combined income for borrower and non-borrower spouse exceeds maximum income for recapture at the time of sale.” If you do owe it, the tax is the lowest of “6.25% of the original principal balance,” “50% of the profit on the sale,” or the IRS Form 8828 computation.
VHFA may pay it back. The agency says the tax “may be eligible for reimbursement by VHFA” if you file its reimbursement form “no later than December 31 of the calendar year following the tax year in which the tax was owed and paid.” Keep the income grid disclosure your lender gives you at closing.
Credit, education and property checks
- Credit: “Minimum credit score for all borrowers is 640-680 depending on the program.” VHFA’s program page does not say which program takes which score, so ask the lender.
- Education: “At least one borrower (person on the loan) must complete homebuyer education, UNLESS they owned a home within three (3) years prior to closing.” VHFA lists Fannie Mae Homeview (free, online) and Vermont NeighborWorks (in person or online, cost varies), plus eHomeAmerica and Framework. A certificate older than 18 months at closing means someone has to take the course again.
- Property: single-family homes, “certain approved condominiums, existing two-unit duplexes, and double-wide manufactured homes on owned land.” VHFA excludes “Co-ops, and properties on more than 5 acres.”
Transfer tax on the first $250,000 goes away with VHFA financing
Vermont’s Department of Taxes gives a principal residence financed by VHFA its own exemption: “The first $250,000 of value paid is exempt. The General Tax Rate of 1.25% plus the Clean Water Surcharge of 0.22% (total 1.47%) applies to the value paid above $250,000.” Without it, the first $200,000 of a principal-residence purchase is taxed at 0.5%. That is where VHFA’s “Savings up to $1,735 at closing” comes from: $1,000 on the first $200,000 plus $735 at 1.47% on the next $50,000. The full fee picture is in our Vermont closing costs guide.
FHLBank Boston grants: closed for 2026, back in 2027
VHFA’s special programs page lists help that VHFA does not run. Two of those programs come from the Federal Home Loan Bank of Boston, which serves all six New England states, and you reach them only through its member lenders:
- Equity Builder Program: grants “to help first-time buyers earning up to 80% of the area median income.” FHLBank Boston’s FAQ says “EBP grants are forgivable after five years from the closing date.” If you sell sooner, the repayment shrinks pro rata and is due “only if the repayment amount is over $2,500.”
- Housing Our Workforce: for buyers earning “more than 80% and up to 120% of the area median income.” In 2026 the grant went up to $25,000, with a $150,000 asset cap and a $2,000 contribution that had to come from the buyer’s own funds. FHLBank Boston sets the amount each year.
Neither is open right now. FHLBank Boston says “The application period for Equity Builder Program is now closed” and the same for Housing Our Workforce, and tells buyers to “Check back in early 2027 for information about the 2027 program funding round.” Terms for 2027 may differ. VHFA says these programs can be used with its own. The one listed exception is USDA’s RD Direct 502 Home Loan, which you apply for through USDA’s Vermont office.
Starting the process with a Vermont lender
Start by calling a lender from VHFA’s list and asking which of MOVE, MOVE MCC and ADVANTAGE they close. Tell them about the property early. VHFA’s FAQ says the lender “will help you determine eligibility” by property type, which matters if you are looking at acreage or a co-op. Get pre-approved, then run the payment in our mortgage calculator. Our Northeast lender guide and Vermont hub cover the market around it.
Vermont first-time buyer questions
I sold a house in Windham County two years ago. Can I use VHFA?
Yes, for MOVE or ADVANTAGE. VHFA names the three-year test for MOVE only for purchases in Addison, Bennington, Chittenden, Grand Isle and Windsor counties, and ADVANTAGE has no first-time requirement. ASSIST and the First Generation grant are out, because both require that you have never owned a home.
Do I have to repay ASSIST?
Yes. ASSIST is a 0% deferred loan, repaid when you sell, refinance or pay off the mortgage. There is no monthly payment. The $15,000 First Generation money is the grant.
Can I pair ASSIST with a VA loan?
No. VHFA says “ASSIST is not eligible with a VA Loan.” A VA borrower can still use a VHFA first mortgage.
Will VHFA finance a house on 10 acres or a co-op unit?
No. VHFA excludes both “Co-ops, and properties on more than 5 acres.”
Nearby states: New Hampshire, Maine, New York.