Vermont Housing Finance Agency ASSIST Loan
Financial Assistance for Homebuyers in Vermont
The ASSIST loan is a zero-interest second mortgage that provides eligible applicants up to $5,000. The loan does not need to be repaid unless the home is sold or refinanced. The uses for the loan amount are very flexible, and can even reimburse some of the upfront expenses related to the mortgage that typically have to be paid out of pocket. However, the amount cannot exceed actual closing costs and required down payment.
ASSIST loans have separate eligibility requirements from VHFA's first mortgage programs. All applicants must be first-time homebuyers and must meet VHFA's ASSIST asset limitations. They are also required to attend HUD-Approved Homebuyer Education prior to loan closing.
The purpose of this program is to make funds available to eligible applicants who are interested in purchasing a home but need financial help to pay the upfront costs, which include the down payment, as well as the closing costs and prepaid items required to obtain homeownership. These expenses can add up to a substantial amount, and the inability to pay it might keep people stuck in a renters trap.
*Seller-funded down payment programs were eliminated in the Housing and Economic Recovery Act of 2008, but States and Local government agencies are still permitted to help borrowers finance their homes with second mortgages and grants. These agencies set different requirements that a borrower needs to meet in order to qualify for the grant programs, such as property location, and purchase price and income limits.
Down payment assistance programs and/or grants were researched by the team at FHA.com. Please note that all programs listed on this website may involve a second mortgage with payments that are forgiven, deferred, or subsidized in some manner until resale of the mortgaged property.
FHA.com's compilation is not a complete list, but it can serve as a starting point in your search for the down payment assistance program or grant for your situation. It is up to the consumer to contact these entities and find out the specifics of each program.
Down Payment Grants in Vermont
The program provides applicants with a deferred, zero-interest loan to help cover down payment and closing costs associated with the purchase of a new home. Borrowers do not need make any monthly payments on the MHDP Loan unless they decide to sell or transfer their home.
The Vermont Housing and Finance Association (VHFA) offers an ASSIST loan which can be used in conjunction with a VHFA mortgage. The ASSIST loan is designed to provide applicants purchasing their first home with up to $5,000 to help with down payment and closing costs.
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