Down payment assistance in Vermont

Vermont's primary statewide down payment assistance program, run by Vermont Housing Finance Agency (VHFA). Numbers and eligibility reflect the program's published 2025 guidelines.

ASSIST Second Mortgage

Deferred loan
Vermont Housing Finance Agency (VHFA)
Maximum assistance
Up to $15,000 as a 0% deferred second
Income limit
Up to $164,300
Home price limit
Up to $612,000
First-time buyer
Required
Eligible loan types
FHA, VA, USDA, Conventional
  • 0% deferred second - repaid on sale/refi/payoff.
  • Pairs with VHFA's MOVE (first-time buyer) or Advantage (repeat buyer) first mortgages.

How Vermont DPA fits into your purchase

Down payment assistance reduces the cash you need at the closing table. Vermont's ASSIST Second Mortgage pairs with the standard FHA, VA, USDA, or conventional first mortgage from a participating lender; the DPA flows through the same closing.

Two things to budget for: most state DPA requires a homebuyer-education course (typically online, 6-8 hours, ~$75) and you usually have to use a lender on the agency's approved list. The agency keeps the list public on its website.

Common questions

What down payment assistance is available in Vermont?

Vermont's primary statewide DPA is ASSIST Second Mortgage from Vermont Housing Finance Agency (VHFA). Up to $15,000 as a 0% deferred second. Many Vermont cities and counties also run additional DPA layered on top.

Do I have to be a first-time buyer?

Yes. The ASSIST Second Mortgage requires that you have not owned a primary residence in the past 3 years. Veterans and target-area buyers are sometimes exempt.

Can I combine state DPA with FHA, VA, USDA, or conventional?

Yes. ASSIST Second Mortgage works with these loan types: FHA, VA, USDA, Conventional. The DPA is layered behind your first mortgage as a separate lien (or grant), and both close together.

Does the DPA show up as debt that hurts my approval?

Usually no. Deferred and forgivable loans typically have no monthly payment, so most lenders do not include them in your DTI calculation.

What if I sell or refinance soon after closing?

Deferred and second-mortgage DPAs are generally repaid in full when you sell, refinance, or pay off the first mortgage.

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