Hey there! If you're thinking of buying a home for the first time, and haven't saved up for a down payment, you still might be able to get it done.

Before I jump into the programs, let me briefly explain how down payment assistance works.

How it works

Down payment assistance comes in two forms: a grant, or a loan

A grant doesn't require repayment.

A loan does require repayment, but there are 3 different ways:

Monthly repayment. This is where they charge you interest and a monthly payment until the loan is paid off

Silent second. This is where they don't charge you interest, they don't charge you monthly payments, they just require that you pay it back when you sell the home.

Forgivable. This is where they forgive the loan as long as you meet certain criteria. A common requirement is that you live in the home as your primary residence for a set number of years. Once you've completed the timeframe, they forgive your loan and you don't need to pay it.

Approved lenders only

These programs can only be handled by approved lenders. If you would like help from a local realtor familiar with the programs and lenders with access, fill out this form here and I will connect you with one.

Now that we have that out of the way, let's jump in! Below are the local programs available to help make homeownership more accessible.

Vermont Housing Finance Agency (VHFA) ASSIST Program

  • Assistance: Provides up to $10,000 - 15,000 in down payment and closing cost assistance.

  • Terms: 0% interest second mortgage, forgivable after five years if the buyer remains in the home. Repayment required if the home is sold or refinanced before five years.

  • Eligibility: First-time homebuyers using a VHFA mortgage; income limits vary by county and household size.

  • More Information: VHFA ASSIST Program

NeighborWorks of Western Vermont – Down Payment Assistance Loan

  • Assistance: Provides second mortgages up to $50,000 to assist with down payments.

  • Terms: Can be paired with partnering lenders for up to 100% financing without private mortgage insurance (PMI).

  • Eligibility: Open to all qualified borrowers purchasing in Vermont.

  • More Information: NeighborWorks Down Payment Assistance

Downstreet Housing & Community Development – Shared Equity Program

  • Assistance: Provides down payment assistance grants of up to 20% of the market price.

  • Terms: Buyers agree to share a portion of the home's appreciation with the program upon resale, ensuring long-term affordability.

  • Eligibility: Applicants must meet income guidelines and program requirements.

  • More Information: Downstreet Shared Equity Program

Program availability and terms can change, so it's essential to verify the most current information directly with the administering agencies.

These programs can only be handled by approved lenders. If you would like help from a local realtor familiar with the programs and lenders with access, fill out this form here and I will connect you with one.