Updated 1/26/2026

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

I've included all of the links and contact info needed to do this on your own, the form is meant to make it easier.

Connect with a DPA team

How Down Payment Assistance Works

I need to give a quick overview of how down payment assistance works. After that, the programs are listed.

With down payment assistance, you'll run into two different types:

  • A grant

  • A loan

A Grant

If we meet the qualifications up front, then it's money that does not need to be repaid.

A Loan

If the down payment assistance comes in the form of a loan, then pay attention to the three different types:

  • Repayable

  • Deferred

  • Forgivable

Repayable is just as most imagine. It charges interest over a certain amount of time, with monthly payments until it's paid off.

Deferred loans usually don't require a monthly payment, and typically don't charge interest. It's due in full when you refinance, sell the home, or when it ceases to be your primary residence.

Forgivable loans will disappear if you meet the criteria, which usually comes down to keeping the home as your primary residence for a specific amount of time.

Okay with that, here are the programs!

Vermont 

Vermont Housing Finance Agency (VHFA) ASSIST Program

  • Assistance: Provides up to $15,000 for down payment and closing costs.

  • Terms: 0% interest deferred loan. No monthly payments are required. The loan must be repaid in full when the home is sold, refinanced, or the mortgage is paid off. (Note: It is not forgivable).

  • Eligibility: First-time homebuyers (or those who haven't owned in 3 years) using a VHFA mortgage. Liquid assets must be under $30,000.

  • More Information: VHFA ASSIST Program

VHFA First Generation Homebuyer Grant

  • Assistance: Provides a $15,000 grant for down payment and closing costs. (Can be combined with the ASSIST loan for up to $30,000 in total aid).

  • Terms: Grant. No repayment is required.

  • Eligibility: You must be a "First-Generation Homebuyer," defined as someone whose parents or legal guardians have never owned a home (or lost it to foreclosure) and who has not owned a home themselves.

  • https://vhfa.org/first-gen-program

NeighborWorks of Western Vermont Down Payment Assistance Loan

  • Assistance: Provides a second mortgage of up to $50,000 (or 20% of the purchase price).

  • Terms: Interest-bearing loan (typically 15-year term). The goal is to reach 20% equity to avoid Private Mortgage Insurance (PMI). It is not a grant.

  • Eligibility: Available to qualified borrowers purchasing in Vermont (statewide service area).

  • More Information: NeighborWorks Down Payment Assistance

Shared Equity Programs

Champlain Housing Trust Shared Equity Program

  • Assistance: Provides a significant subsidy (often 20% to 30% of the home's value) to lower the purchase price.

  • Terms: Shared Equity Model. You own the home, but the Trust retains ownership of the land. When you sell, you keep your principal paid down plus 25% of the appreciation; the remaining appreciation stays with the home to keep it affordable for the next buyer.

  • Eligibility: Low-to-moderate income buyers (typically under 80-100% AMI) purchasing in Chittenden, Franklin, or Grand Isle counties.

  • More Information: https://www.getahome.org/homes/

Downstreet Housing & Community Development Shared Equity Program

  • Assistance: Provides grants/subsidies effectively covering 20%+ of the market price.

  • Terms: Shared Equity Model. Similar to Champlain Housing Trust, you agree to limit your resale price to share the appreciation with the next buyer, ensuring the home remains affordable in perpetuity.

  • Eligibility: Income-eligible buyers purchasing in Central Vermont (Washington, Orange, and Lamoille counties).

  • More Information: Downstreet Shared Equity Program

Windham & Windsor Housing Trust Homeland Program

  • Assistance: Provides grants to reduce the purchase price of a home (Shared Equity).

  • Terms: Shared Equity Model. The trust holds the land and the subsidy; you own the building.

  • Eligibility: Low-to-moderate income buyers in Southeastern Vermont (Windham and Windsor counties).

  • https://www.homemattershere.org/sharedequity/

Updated 1/26/2026

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

I've included all of the links and contact info needed to do this on your own, the form is meant to make it easier.