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Vermont ASSIST Down Payment Assistance Loan

The Vermont ASSIST Down Payment Assistance Loan, offered by the Vermont Housing Finance Agency (VHFA), provides financial support to help eligible homebuyers cover down payments and closing costs. This program is designed to make homeownership more affordable and accessible by reducing the upfront costs of purchasing a home in Vermont.

Benefits

  • Offers up to $15,000 in financial assistance for down payments and closing costs, significantly reducing out-of-pocket expenses.
  • Assistance is structured as a deferred loan with no monthly payments and no interest.
  • The loan is forgivable after five years if the buyer remains in the home as their primary residence.
  • Supports both first-time and repeat homebuyers who meet program eligibility requirements.
  • Can be combined with other VHFA programs for enhanced financial flexibility and support.

Eligibility Requirements

  • Applicants must meet income and purchase price limits, which vary based on household size and the property’s location within Vermont.
  • The property must be located in Vermont and used as the buyer’s primary residence.
  • Participants must qualify for a VHFA-approved first mortgage to access the ASSIST loan benefits.
  • A minimum credit score of 640 is typically required, with lender-specific underwriting criteria also applicable.
  • Completion of a VHFA-approved homebuyer education course is required to ensure readiness for homeownership responsibilities.

Additional Information

The Vermont ASSIST Down Payment Assistance Loan is an invaluable resource for homebuyers seeking to reduce financial barriers to homeownership. By offering significant financial assistance, this program empowers eligible buyers to achieve stable housing and invest in their futures. Administered by the Vermont Housing Finance Agency, the initiative supports sustainable homeownership and strengthens communities across the state.

Frequently Asked Questions About Our Program

What is the Vermont ASSIST Down Payment Assistance Loan?

The Vermont ASSIST Down Payment Assistance Loan provides eligible homebuyers with financial help to cover down payment and closing costs, making homeownership more affordable.

How much assistance can I receive through the ASSIST program?

The program offers up to $15,000 in down payment and closing cost assistance, provided as a deferred loan with no monthly payments.

Who qualifies for the ASSIST Down Payment Assistance Loan?

Eligibility is based on income and purchase price limits, and applicants must use the home as their primary residence. Both first-time and repeat homebuyers may qualify.

Do I need to be a first-time homebuyer to qualify?

No, the program is open to both first-time and repeat homebuyers, provided they meet income and property eligibility requirements.

What is the minimum credit score required?

Applicants typically need a minimum credit score of 640 to qualify. A higher credit score may improve loan terms and eligibility.

Are there income limits for the ASSIST program?

Yes, income limits vary based on household size and the county where the property is located, ensuring the program benefits low-to-moderate-income families.

What types of properties are eligible for the ASSIST program?

Eligible properties include single-family homes, townhouses, and condominiums. Manufactured homes may qualify if they meet program guidelines and are permanently affixed to a foundation.

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What is the maximum purchase price allowed?

As of 2025, the maximum purchase price varies by county but generally ranges from $300,000 to $500,000, depending on program criteria.

Does the ASSIST loan need to be repaid?

The loan is deferred with no interest or monthly payments. Repayment is only required if the home is sold, refinanced, or no longer used as the buyer’s primary residence within a specific timeframe.

Is homebuyer education required for the ASSIST program?

Yes, completing a homebuyer education course is mandatory to ensure buyers understand the financial responsibilities of homeownership.

Can the ASSIST program help with closing costs?

Yes, the funds can be used for both down payment and eligible closing costs, reducing the upfront financial burden for homebuyers.

Are there restrictions on where the property must be located?

Yes, the property must be located within Vermont and meet the program’s eligibility criteria for type and price.

Can the program be used for newly constructed homes?

Yes, newly constructed homes are eligible as long as they meet the program’s purchase price and other requirements.

Are there debt-to-income (DTI) ratio requirements?

The maximum allowable DTI ratio is typically 45%, but exceptions may apply for applicants with strong credit or other compensating factors.

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Can the ASSIST program be combined with other assistance programs?

Yes, the ASSIST loan can often be combined with other state or local homebuyer assistance programs to maximize benefits.

What are the benefits of the ASSIST Down Payment Assistance Loan?

The program reduces the financial barriers to homeownership by offering deferred loans for upfront costs, making homeownership more accessible for eligible buyers.

Can this program be used with FHA, VA, or USDA loans?

Yes, the ASSIST program can be paired with FHA, VA, USDA, and conventional loans, provided all eligibility requirements are met.

How does the deferred loan for down payment assistance work?

The deferred loan provides financial assistance without monthly payments. Repayment is only required if the buyer sells, refinances, or no longer uses the home as their primary residence.

What is the application process for the ASSIST program?

Applicants work with an approved lender who will verify eligibility, guide them through the application process, and help secure the loan and assistance.

Is there a fee to participate in the ASSIST program?

Yes, a one-time program fee may apply, typically included in the closing costs. Specific details are provided by the lender during the application process.

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