Vermont VHFA Advantage Program Guide

Guide to the Vermont VHFA Advantage Program

The Vermont VHFA Advantage Program, offered by the Vermont Housing Finance Agency (VHFA), provides affordable mortgage options and additional financial assistance to help eligible homebuyers achieve homeownership. This program is tailored to reduce financial barriers, making homeownership more attainable for first-time buyers and others who qualify. Below is an updated guide to the program’s features, requirements, and application process for 2025.

1. Program Overview:

• Purpose: The VHFA Advantage Program offers competitive mortgage rates and financial assistance to reduce the upfront and ongoing costs of homeownership.
• Loan Terms: The program features 30-year fixed-rate mortgages, ensuring predictable and stable monthly payments.
• Additional Assistance: Buyers may qualify for down payment and closing cost assistance through companion programs, reducing the initial financial burden.

2. Eligibility Requirements for 2025:

To qualify for the Vermont VHFA Advantage Program, applicants must meet the following criteria:

• First-Time Homebuyer: The program is primarily for first-time buyers, defined as individuals who have not owned a home in the past three years. Exceptions may apply for buyers in targeted areas or veterans.
• Income Limits: Household income must fall within program limits, which vary by location and household size. These limits are updated annually.
• Credit Score: A minimum credit score of 620 is required. Additional lender-specific guidelines may apply.
• Property Requirements: Eligible homes must be located in Vermont, used as the buyer’s primary residence, and meet program purchase price limits.

3. How to Apply:

Follow these steps to apply for the Vermont VHFA Advantage Program:

• Assigned Loan Officer: Once you begin the application process, a loan officer will be assigned to assist you. They will verify your eligibility, explain the program benefits, and guide you through the application process.
• Prepare Documentation: Gather necessary documents, including proof of income, tax returns, credit history, and property details.
• Submit Your Application: Work closely with your assigned loan officer to complete and submit the application. Your loan officer will handle the processing and notify you of your approval status.

4. Homebuyer Education Course:

• Mandatory Requirement: All applicants must complete an approved homebuyer education course. This course ensures buyers are prepared for the responsibilities of homeownership and offers guidance on financial management.
• Course Availability: The course can be taken online or in person. Upon completion, participants receive a certificate that must be included with their application.

5. Key Benefits of the VHFA Advantage Program:

• Affordable Fixed Rates: The program offers competitive fixed-rate mortgages, ensuring predictable monthly payments over the life of the loan.
• Financial Assistance: Buyers can access down payment and closing cost assistance through complementary programs, reducing upfront costs significantly.
• Support for First-Time Buyers: The program is tailored to the needs of first-time homebuyers, providing educational and financial resources to ease the transition into homeownership.

6. Finalizing the Loan:

• Approval Process: Once approved, your assigned loan officer will guide you through the next steps, including reviewing loan terms, signing documents, and preparing for closing.
• Closing Costs: While the program provides significant assistance, buyers may still need to cover certain closing costs. Your loan officer will provide a detailed breakdown of these expenses.

The Vermont VHFA Advantage Program is an excellent resource for eligible homebuyers, offering affordable mortgage options and financial assistance to make homeownership more accessible. With competitive rates, tailored support, and expert guidance, this program helps Vermont residents achieve their homeownership goals. Begin your journey with the Vermont VHFA Advantage Program in 2025.