Down Payment Assistance in Vermont

What is down payment assistance in Vermont?

Vermont’s small-town charm comes with rising home prices, especially near ski towns and Burlington, but the right down payment assistance can still bring homeownership within reach across the Green Mountain State.

Homebuyers may be able to use down payment assistance (DPA) programs to help them purchase a property. Down payment assistance is made up of national, state, local, and employer-sponsored programs designed to support homebuyers who can afford a monthly mortgage payment but need help coming up with the upfront cash needed for a down payment and closing costs.

Offered by government agencies, nonprofits, and some private organizations, DPA provides financial support to help homebuyers cover the down payment, closing costs, or both. It helps to bridge the gap between what buyers have saved and the funding they need to buy.

It may also provide homebuyers with a financial cushion, so they don’t have to drain all of their savings to afford homeownership.

From the peaks of the Green Mountains to the shores of Lake Champlain, Vermont homebuyers can tap into statewide, local, and community-based programs that help cover the upfront costs of purchasing a home.

Assistance typically comes in one of three forms: a grant (money you don’t repay), a forgivable loan (which is gradually forgiven the longer you stay in the home), or a low-interest loan. The right option depends on the program and your individual situation.

Whether you’re a first-time homebuyer in Vermont or returning to homeownership after years away, there may be money available to help make up the difference between how much you’ve saved and the amount you need to close on a home.  

How does down payment assistance work?

Every down payment assistance program has its own rules, but most follow a similar path from homebuyers researching their options to funding.

Research. The DPA landscape is larger than most people realize. In fact, there were more than 2,700 DPA programs as of July 2026, according to Down Payment Resource, a company that connects homebuyers to the programs. Assistance may be available at the state, county, city, or employer level, and different programs have different eligibility requirements. If one program doesn’t fit your situation, keep looking. There may be others that will.

Determine your eligibility. Common requirements include income limits, minimum credit scores, and property location restrictions. Understanding your financial profile, where you want to buy, and how long you plan to live in the home will help you identify which programs are worth pursuing.

Apply. Once you find a down payment program that fits your criteria and eligibility, you’ll submit an application and supporting documents. Expect to provide proof of income, personal identification, credit information, and details about the property you intend to purchase.

Get approved and receive funding. If your application is approved and your information verified, you’ll receive the assistance at closing. It’s typically applied directly toward your down payment, closing costs, or both, depending on the program’s terms.

It is important to note that most DPA programs have their own conditions, which may include having to repay the loan in part or full if you move early, sell, or refinance the home. Make sure to always review and understand the terms and conditions of any loan you use.

Additionally, some programs may run out of funding. That’s why it’s important to check availability and stay on top of deadlines.

Who qualifies for down payment assistance?

Many people don’t realize they may be able to qualify for down payment assistance. DPA isn’t just a tool for first-time and first-generation homebuyers or those with lower incomes.

The assistance is available for a wide variety of people in a range of financial situations. Nearly two-thirds, 62%, of current DPA programs serve homebuyers earning more than $100,000 a year and 11% have no income limits, according to Down Payment Resource.

Additionally, more than a third, 38%, of DPA programs don’t have a first-time homebuyer requirement.

There are DPA programs for: First-generation homebuyers, Native American homebuyers, veterans, educators, law enforcement, first responders, municipal employees, those who earn less than a certain threshold, and more. Some programs also exist for buyers who purchase properties in certain communities.

Some organizations also offer homeownership assistance programs for their employees, so make sure you check with your employer as well.

Types of down payment assistance

The majority of DPA programs fall into two categories: Second mortgages and grants.

Second mortgages are by far the most common form of down payment assistance, making up 56% of all programs, according to Down Payment Resource. This is a separate loan running alongside your primary mortgage, with its own monthly payment.

Second mortgages are often set up to be a deferred or forgivable loan to reduce the upfront cost. If you have a deferred loan, it means that it doesn’t have to be repaid until you sell, refinance, or move out. A forgivable loan is gradually forgiven if you live in the home for a set amount of time.

Grants make up 9% of DPA programs and are the most straightforward form of assistance. They’re a gift, with no repayment required under any circumstances. As always, read the terms carefully to make sure you understand any conditions attached.

Finding down payment assistance

Down Payment Resource offers an interactive search feature that allows you to search available DPA programs by location as well as by things like your occupation, military status, or disability status.

New American Funding (NAF) also offers a down payment assistance program called Pathway to Homeownership. Specifically available to first-time homebuyers, eligible borrowers may receive up to $6,000* in financial assistance. This money can be used to help with your down payment, closing costs, or other costs. It can also be combined with other DPA programs.

National down payment assistance programs

While there is not national database of nation-wide DPA programs available, there are several main ones that are notable. They include:

The Chenoa Fund

The Chenoa Fund is administered by CBC Mortgage Agency (a federally chartered tribal housing finance authority). It is one of the most accessible national DPA programs available because it drops two of the most common barriers to qualification. It has no income limits and no first-time homebuyer requirement.

The program covers the required 3.5% down payment on Federal Housing Administration (FHA) loans. The aid is structured either as a forgivable second mortgage or a repayable second mortgage, depending on the option selected.

Borrowers need a minimum 600 credit score to qualify. The program is available in all states except New York.

Since it works through a network of participating lenders nationwide, buyers can access it through their mortgage lender rather than applying directly.

The National Homebuyers Fund

The National Homebuyers Fund (NHF) is a nonprofit organization that provides down payment and closing cost assistance of up to 5% of the loan amount. It’s administered as a grant, meaning no repayment is required.

It has no first-time homebuyer requirement, making it available to repeat buyers who may not qualify for programs with that restriction. It works with FHA, U.S. Department of Veterans Affairs (VA), U.S. Department of Agriculture (USDA), and Conventional loans.

The credit score and debt-to-income requirements are flexible.

The NHF is available in most states and is accessed through a network of participating lenders rather than through a direct application to the fund itself.

Many of the national DPA programs are offered by various lenders and private non-profit organizations like the Homeownership Council of America.

Down payment assistance programs in Vermont

The Vermont Housing Finance Agency (VHFA) is the state’s housing finance agency and the central source for statewide DPA programs. VHFA doesn’t lend directly to buyers. Homebuyers apply through a VHFA-approved participating lender, which will combine the assistance with the mortgage.

VHFA Down Payment Assistance Programs

The VHFA offers two down payment assistance programs:

The Down Payment Assistance (ASSIST) program provides up to $10,000 for down payment or closing costs. The funds are offered as a 0% interest deferred loan with no monthly payments.  

ASSIST details and requirements include the following:

• DPA is only available with the VHFA MOVE loan program
• Not eligible to be used with a VA loan
• Must meet credit and property eligibility requirements
• Borrowers and non-borrowing spouses must have never owned a home and have less than $20,000 in combined liquid assets
• Funds must be repaid if the property is sold, refinanced, or the first mortgage is paid off
• Can be combined with the VHFA First Generation Homebuyer grant and other down payment assistance

The First Generation Homebuyer Grant provides up to $15,000 for down payment or closing costs.

Program details and requirements include the following:

• Can be combined with VHFA ASSIST and down payment assistance from other sources
• Borrowers and non-borrowing spouses must have never owned a home before and have less than $20,000 in combined liquid assets
• At least one person taking title must either have been placed in foster care at some point in their life, or have parents or legal guardians who never owned or lost their home to foreclosure and have not owned again
• Must meet eligibility requirements for the selected VHFA program
• Must meet credit and property eligibility requirements
• Grant is only available with the VHFA MOVE or ADVANTAGE loan programs

Champlain Housing Trust Assistance Programs

Champlain Housing Trust (CHT) is a nonprofit affordable-housing organization based in Burlington that offers homebuyer education, counseling, and financial assistance statewide. For eligible buyers, CHT offers two key programs:

The Manufactured Housing Down Payment Loan for qualifying manufactured or modular homes, and the Shared Equity Program, which lowers the upfront cost of purchasing a permanently affordable home.

The Manufactured Housing Down Payment Loan provides up to $40,000 as a 0% interest second mortgage with deferred payments, and no monthly payments.

Program details and requirements include the following:

• Funds must be repaid if the home is sold, transferred, or refinanced
• The loan is assumable by a future eligible buyer who meets program requirements
• Must be qualifying Energy Star-rated, Zero Energy Ready manufactured homes, and approved zero-energy modular homes
• Maximum assistance of up to $30,000 for qualifying home in a mobile-home park or on privately leased land; up to $40,000 for an eligible home on borrower-owned land or an approved zero-energy modular home
• Buyer must contribute at least $2,500 from savings toward transaction costs
• Completion of homebuyer education and counseling
• Household income must be below program limits, which vary by county and household size
• Available in every Vermont county and can be used for a home purchase or the replacement of an older manufactured home

The Shared Equity Program helps eligible Vermont households buy a permanently affordable home with no traditional down payment and a smaller first mortgage than they would need in the open market. CHT uses public and private funds to contribute approximately 20% to 30% of the home’s market value, reducing the buyer’s purchase price. In return, the buyer agrees to resale restrictions and shares a portion of future appreciation, so the home remains affordable for the next buyer.

Program details and requirements include the following:

• Program combines a below-market purchase price with down-payment support, homebuyer education, and counseling
• Buyers build equity as long as the home remains owner-occupied
• Must meet household income limits based on gross income and household size
• Buyers cannot exceed more than $60,000 in liquid assets
• Buyers need at least $3,000 in personal savings and plan to pay closing costs
• Must qualify for a first mortgage with a local lender that works with CHT
• Completion of homebuyer education workshop and individual counseling
• Home must be used as the primary residence
• When the home is sold, the resale price is restricted to preserve the affordability
• Assistance is tied to the purchase of a CHT shared-equity home

Beyond these statewide programs, several Vermont cities and counties have established their own DPA programs. Many of these can be stacked with VHFA assistance. That means some eligible buyers may be able to combine multiple programs and significantly increase their total help.

This can help them to cover their down payment, closing costs, or simply have a little left over as a financial cushion.

Southeastern Vermont down payment assistance program

Southeastern Vermont centers around Brattleboro, known for its independent bookstores, farmers markets, and active arts scene along the Connecticut River Valley. The region offers classic Vermont small-town character with easy access to Massachusetts and New Hampshire, giving buyers walkable downtowns and mountain views within a short drive of bigger job markets.

Southeastern Vermont down payment assistance program includes:

Windham & Windsor Housing Trust’s (WWHT) Shared Equity Homeownership Program helps low- and moderate-income homebuyers in southeastern Vermont purchase a home with a smaller mortgage and little to no down payment.

Program details include:

• WWHT provides a grant equal to 20% to 35% of the purchase price for an approved home. Maximum grant amount is $80,000
• Maximum purchase price limit of $325,000
• Buyers must purchase a home already in the WWHT resale portfolio or bring an approved open-market home into the program
• Home must remain permanently affordable through resale restrictions, which will limit the seller’s share of future appreciation
• Must meet household income limits
• Completion of homebuyer education and counseling
• Must be pre-approved for a mortgage with a WWHT-approved lender
• If the owner sells, the home must be sold back through WWHT to an income-qualified buyer
• Homeowner repays the original grant, and retains 25% of market appreciation
• Homeowner is responsible for 100% of a decrease in value if the home depreciates

Central Vermont down payment assistance program

Central Vermont covers Washington, Orange, and Lamoille counties, anchored by the state capital of Montpelier, the smallest state capital in the country. The region blends government and small-city amenities with classic Vermont scenery, from the ski slopes of Stowe in Lamoille County to the rural farmland stretching through Orange County.

Central Vermont down payment assistance program includes:

Downstreet Housing & Community Development offers a Shared Equity Program to help income-qualified buyers purchase a permanently affordable home with less cash needed upfront. Downstreet is a nonprofit community land trust and housing organization that provides a down payment assistance grant of up to 20% of a home’s market price.  In exchange, the buyer must agree to resale terms that will preserve the home’s affordability for another eligible household.

Program details include:

• Buyers must meet household income limits and be at or below 120% of area median income (AMI). This is the midpoint of local earnings for an area, calculated by the U.S. Department of Housing and Urban Development.
• Grant program is available to buyers in Washington, Orange, and Lamoille counties only
• Funds can only be used to purchase a Downstreet shared-equity home
• Completion of homebuyer education course and counseling
• Must qualify for a primary mortgage for the balance of the purchase price
• Home must be primary residence
• When the home is sold, the buyer’s profit from the appreciation is limited under the agreement. The down payment grant remains with the home

Rutland and Addison counties Vermont down payment assistance program

Rutland and Addison counties sit in west-central Vermont, home to the Green Mountains on one side and Lake Champlain’s shoreline on the other. Rutland offers a small-city hub with shops and services, while Addison County to the north brings college-town energy from Middlebury College along with some of the state’s most scenic farmland. Together, the counties give buyers a mix of mountain access, lake views, and lower costs than Vermont's more tourist-heavy areas.

Rutland and Addison counties down payment assistance program includes:

Cornerstone Housing Partners is a nonprofit housing organization that supports affordable homeownership in Rutland and Addison counties. It offers a down payment assistance loan which provides eligible Vermont homebuyers with up to $50,000 in down payment assistance. The funds are structured as a 15-year amortizing second mortgage. It can be used to finance up to 100% of a home’s purchase price when combined with a participating lender’s first mortgage.

Program details include:

• Property can be located anywhere in Vermont
• Available to all income levels
• Property must be used as the primary residence
• Completion of homebuyer education course

These are some of the main down payment assistance programs available across Vermont. However, there may be more programs available to you based on your location in the state or your occupation.

For instance, some towns or cities may offer down payment assistance specifically for first responders or teachers. Make sure to do your own research to see if there is a program that may be right for you. And be aware that certain programs may only be available until all of the funding is used.

How to apply for Vermont down payment assistance

The application process for different DPA programs may change. However, some general application steps include:

1. Check your eligibility. Review income limits, credit requirements, and first-time buyer status at vhfa.org. For local programs, contact the relevant city or county housing office.  
2. Find a participating lender. VHFA programs are only available through approved lenders in their network.
3. Get pre-qualified. Your lender reviews your income, credit, and debts to determine which programs you may qualify for to receive funding.
4. Complete homebuyer education. Enroll in an approved homebuyer education course and keep your completion certificate for closing.
5. Find your home. Work with a licensed agent to locate a qualifying Vermont property. Your lender will confirm if it meets program requirements.
6. Close on your home. Your lender packages your first mortgage and DPA together. Assistance funds are applied at settlement.

Vermont down payment assistance FAQs

^{Program details reflect August 2026 information. Down payment assistance programs are subject to change and depend on current funding availability. Always confirm income limits, eligibility requirements, and program details with your lender or the applicable program administrator before applying.}

^{*Credit up to $6,000 maximum. Due to maximum seller concession rules applicable to purchase loan transactions, this credit could be less than $6,000 in some cases where other concessions have been made to the consumer.}