Why This Program Matters Right Now
First-time homebuyers in Vermont often face challenges securing enough cash for a down payment, which can prevent entry into the housing market. The VHFA Down Payment Assistance (ASSIST) program helps reduce these upfront barriers by offering financial support directly for down payment and closing costs.
By leveraging this program, qualified Vermont buyers can begin building equity sooner, turning a rental history into a path toward homeownership while maintaining long-term financial stability.
What the VHFA Down Payment Assistance Provides
The program offers up to $10,000 in down payment and closing cost assistance with 0% interest. Funds are structured as a deferred loan, meaning repayment is required only when the property is sold, refinanced, or the mortgage is fully paid off.
This assistance is administered by the Vermont Housing Finance Agency (VHFA) and is paired with a VHFA-approved first mortgage program called VHFA MOVE. The program also requires completion of homebuyer education to ensure participants are prepared for the responsibilities of homeownership.
VHFA Down Payment Assistance Program Structure
- Assistance type: Deferred second mortgage applied to down payment and closing costs
- Maximum assistance: $10,000
- Funding type: Deferred loan
- Repayment required: Yes, upon sale, refinance, or payoff of the mortgage
- Interest rate: 0%
- Approved first mortgage types: VHFA MOVE
Participants may combine this assistance with the VHFA First Generation Homebuyer grant or other down payment assistance programs, depending on eligibility.
Key Numbers
- Maximum assistance: $10,000
- Interest rate: 0%
- Minimum assistance: Not specified
- Income limits: 120% of AMI for all counties in Vermont
- Credit score required: Not specified
- Down payment requirement: $0 down payment not allowed
- Other applicant financial requirements: Combined liquid assets under $20,000
- Assistance repayment required: Yes
Eligibility Requirements
- First-time homebuyer (or non-borrowing spouse must have never owned a home)
- Must be in good standing with VHFA
- Must participate in VHFA-approved homebuyer education and financial management classes
- Must meet income, credit, and asset requirements
Property Requirements
- Home location: Vermont
- County: All counties eligible
- Allowable property type: 1–2 unit primary residences, approved condominiums, double-wide or single-wide manufactured homes on owned land
- Exclusions: Co-ops and properties on more than 5 acres
- Must be owner-occupied
How the Process Works
- Contact a VHFA participating lender to confirm eligibility and request an application
- Submit the application for review
- Participate in VHFA homebuyer education and financial management classes
- Complete classes, meet credit and savings requirements, and receive staff assistance to find a participating lender for mortgage pre-approval
- Begin searching for a home once pre-approved
- Close and take ownership of your home
VHFA Down Payment Assistance Affordability Impact
This program reduces the upfront cash required for first-time homebuyers, making homeownership more accessible in Vermont.
This program does not reduce the monthly mortgage payments. It reduces upfront cash required.
Where This Fits in the Market
VHFA ASSIST complements other Vermont state housing programs by converting rental investment into a mortgage subsidy. Unlike typical down payment grants, this program integrates directly with a first mortgage and includes mandatory education, giving buyers a structured and supportive path to homeownership.
Eligible Vermont buyers can combine VHFA ASSIST with other state programs to maximize affordability while building equity from day one.
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