First-time home buyer programs in Vermont: VHFA and Burlington

How do VHFA programs work?

VHFA is a non-profit that has helped Vermont homebuyers since 1974, according to its FAQ. It does not lend directly. Its programs are available only through VHFA Participating Lenders, and VHFA does not accept applications. The first step is to ask a participating lender whether you qualify.

Three loan programs sit at the center:

• MOVE. Often VHFA’s lowest interest rate. Income limits, purchase price limits and first-time buyer rules apply.
• MOVE MCC. The same eligibility, with a Mortgage Credit Certificate issued at closing (see below).
• Advantage. The highest income and price limits. It has no first-time buyer requirement unless you use a VHFA down payment assistance program.

For MOVE and MOVE MCC, buyers and non-borrowing spouses must not have owned a home in the past three years if the home is in Addison, Bennington, Chittenden, Grand Isle or Windsor County. The minimum credit score is 640 to 680 depending on the program, and at least one borrower must complete homebuyer education.

Income and price limits for Chittenden County

VHFA’s limits took effect July 1, 2026. They are the combined gross annual income of all borrowers and non-borrowing spouses.

Source: VHFA, “Income and purchase price limits,” as of July 1, 2026.

The MOVE price cap of $450,000 is below the 2024 Census median value of $470,600 for Chittenden County reported on our Vermont home prices page, which is an owner estimate, not a sale price. Advantage reaches $550,000.

What interest rates does VHFA post?

VHFA publishes rates by loan type. Rates change, so check the page on the day you apply.

Source: VHFA, “Interest rates,” effective October 13, 2026.

What down payment help is there?

Source: VHFA, “Homebuyers.” ASSIST and the grant can be combined with each other and with other assistance.

Other programs listed by VHFA as available alongside its own, except the USDA loan:

• Shared Equity Down Payment Grant, through a Vermont NeighborWorks HomeOwnership Center. Inventory is limited.
• Equity Builder and Housing Our Workforce (HOW), from the Federal Home Loan Bank (FHLBB) through its Vermont member lenders. VHFA describes Equity Builder as “sometimes up to $15,000,” with limited funds on a first-come, first-served basis.
• USDA Rural Development Direct 502 loan, which can lower the rate to 1% with no down payment. You apply directly with the USDA office, and it cannot be combined with VHFA programs.

A savings many buyers miss: the transfer tax

The Vermont Department of Taxes lists an exemption for a principal residence funded in part by VHFA or USDA Rural Development: the first $250,000 of value paid is exempt from the property transfer tax. The standard principal-residence rate is 0.5% on the first $200,000, and 1.47% (1.25% plus a 0.22% clean water surcharge) above that.

Example, not a quote. On a $400,000 principal residence:

• Standard rate: $200,000 × 0.5% = $1,000, plus $200,000 × 1.47% = $2,940, for $3,940.
• With VHFA financing: $150,000 × 1.47% = $2,205, a difference of $1,735.

Ask your closing agent which exemption applies to you. Our transfer tax guide covers the tax in full.

What are the catches?

• Homebuyer education. At least one borrower must complete it with an approved provider, unless they owned a home within three years before closing. Fannie Mae’s HomeView course is online and free; Vermont NeighborWorks charges varying fees. Education older than 18 months at closing must be retaken.
• Federal recapture tax. MOVE, MOVE MCC and MCC carry a federal tax benefit. Tax may be owed if you sell in under nine years, make a profit and your income at the time of sale exceeds a threshold. The tax is the lowest of three calculations, including 6.25% of the original loan. VHFA says it may reimburse tax paid.
• Property rules. Programs cover a primary residence. Co-ops and properties over 5 acres are not eligible, and current owners must sell before receiving VHFA financing.

What does the City of Burlington offer?

The City of Burlington’s Community & Economic Development Office (CEDO) works mainly through housing developers. We read its pages and found no city-run down payment grant for individual buyers. What exists:

• Housing Trust Fund. Grants and loans for non-profit housing projects serving households at or below 100% of HUD median income, with preference for those at or below 50%. Priority goes to perpetually affordable housing. The spring 2026 round totaled up to $750,000.
• HOME funds. Federal HUD money administered by CEDO for affordable housing development.
• Inclusionary zoning. Developments of five or more new homes must set aside 15% to 25% as affordable homes, price-controlled for 99 years and targeted to households earning up to 70% of area median income. These homes are bought through the developer or its partner.

Our page on buying a home in Burlington has the local price and tax figures.

How do I apply?

1. Choose a VHFA Participating Lender and ask what you qualify for.
2. Complete homebuyer education.
3. Get pre-approved, then shop within the price limit.

For loan types, read the FHA loan guide and the steps of buying a home.