BURLINGTON, VT. Vermont Housing Finance Agency (VHFA) announces the launch of the First Generation Homebuyer Program, with a goal of helping more Vermonters afford their first home. This program provides a grant to eligible homebuyers whose parents or legal guardians were likely unable to pass on the generational wealth homeownership can provide.
"Owning a home stabilizes our families and our communities, and this is an important step toward making homeownership available to all Vermonters,” said State Senator Kesha Ram Hinsdale who introduced the initiative.
The Governor signed the bill into law during a ceremony this summer. “By putting funding into the hands of Vermonters who have been left out of homebuying opportunities and seeking to buy their first home, we are increasing housing affordability and supporting long-term wealth generation,” said Governor Phil Scott. This pilot program is modeled after a federal proposal and provides a $15,000 grant for down payment and closing cost assistance. To be eligible, all borrowers and non-borrowing spouses must be true first-time homebuyers. In addition, the parents or legal guardians of one borrower may not currently own a home, or one borrower has been placed in foster care at any time in their life. Other credit, income, asset, and property eligibility requirements apply.
All Vermonters who meet the eligibility requirements are encouraged to apply. The Vermont law enacting this program places specific emphasis on marketing and outreach to organizations and agencies that serve and represent Black, Indigenous and Persons of Color.
“While this program is not limited to People of Color, we know that three times as many white-led households own their homes compared to Black-led households,” remarked Maura Collins, VHFA's Executive Director. “By aiming to serve those who may not have access to the kind of generational wealth that homeownership creates, we hope this program can play a role in addressing that gap,” she added.
"It's clear that one way to rectify some of our discriminatory policies of the past is to provide opportunities and access to homeownership for all. VHFA has worked with those affected communities to use funds for this purpose in a way that will build a program that is fair and sustainable. I'm proud of the Legislature for our deliberative work, and of VHFA for their creativity and perseverance in crafting this program,” said State Representative Tom Stevens, Chair of the House Committee on General, Housing, and Military Affairs.
“VHFA is engaged in an inclusive process to develop an equitable and racially responsive approach that will increase the likelihood that prospective homebuyers from racially disenfranchised groups know about and have access to this opportunity. I have been pleased by the eagerness and desire to learn demonstrated by VHFA’s lending partners who are part of this pilot program,” adds Tabitha Moore, owner and principal consultant of Intentional Evolution Consulting, LLC, who is assisting VHFA with this program.
The First Generation Homebuyer Program is available exclusively for people using a VHFA mortgage through one of the following participating pilot lenders: Academy Mortgage Company, Fairway Mortgage Company, Heritage Family Credit Union, M&T Bank, National Bank of Middlebury, New England Federal Credit Union, Opportunities Credit Union, Peoples Trust Company, Union Bank, Vermont Federal Credit Union.
Interested homebuyers should start by visiting vhfa.org/firstgen or by contacting a VHFA First Generation Homebuyer Program participating lender directly to ask if they qualify.