Frequently asked questions

1. Who is VHFA and how can VHFA help?

Vermont Housing Finance Agency (VHFA) is a non-profit organization devoted to providing affordable housing options for eligible Vermonters. VHFA has helped eligible Vermont homebuyers purchase a home since 1974. 

2. Where do I start?

VHFA programs are available EXCLUSIVELY through local VHFA Participating Lenders. VHFA does not accept applications. If you are interested in applying for a VHFA program, your FIRST STEP is to contact a VHFA Participating Lender to ask if you are eligible. 

3. Do all VHFA Participating Lenders offer the same VHFA homebuyer programs at the same terms?

Yes. The VHFA programs offered by each VHFA Participating Lender have the same benefits and eligibility requirements. However, not all VHFA Participating Lenders offer all VHFA programs.  

4. What if my lender is not on the VHFA Participating Lender List?

VHFA programs are available EXCLUSIVELY through local VHFA Participating Lenders. To use a VHFA homebuyer program, you must first contact a VHFA Participating Lender to ask about eligibility and how to apply. 

5. Am I required to be a Vermont resident to apply for a VHFA loan?

No, but you must buy a home located in Vermont and occupy it as your primary residence.

6. Do I have to be a first-time home buyer?

Not necessarily. VHFA has programs available for first-time homebuyers and previous homeowners. Please visit our Homebuyer Program page for first-time homebuyer eligibility requirements. If you are a current homeowner, you will be required to sell your current residence prior to receiving VHFA financing to purchase a new home.

7. Do I need a down payment for a VHFA loan?

It depends. All VHFA Homebuyer programs are paired with eligible 30-year fixed rate mortgages (Fannie Mae, Freddie Mac, FHA, RD, VA) that allow borrowers to put as little as 0-5% down depending on the program they qualify for.

8. Can VHFA help with down payment and closing costs?

Yes, VHFA offers down payment and closing cost assistance programs for eligible borrowers. For more detail, please visit the VHFA Homebuyer Program page.   

9. Are there income and purchase price limits?

All programs have income and purchase price limits. Please see the Income and Purchase Price Limits page for current VHFA limits.  

10. What types of properties are eligible?

VHFA programs are limited to the purchase of a primary residence. Eligible property types include new or existing single-family homes, certain approved condominiums, existing two-unit duplexes, and double-wide manufactured homes on owned land. Co-ops, and properties on more than 15 acres are not eligible. Restrictions vary based on the program being used. When you contact a VHFA Participating Lender to ask for a pre-approval, let them know the type(s) of properties you are interested in, and they will help you determine eligibility for VHFA.