The Vermont Housing Finance Agency – VHFA – is responsible for offering mortgage loan programs and down payment assistance programs to first time home buyers and low to moderate income home buyers to purchase homes in Vermont. VHFA also offers homeowner assistance loan programs for Vermont homeowners.
Low Interest Mortgages For Vermonters – aka – MOVE
MOVE is a comprehensive home buyer program which provides a variety of down payment options, requirements for loan qualification, as well as a number of interest rate scenarios. Mortgage loans are offered through participating and VHFA approved lenders. Home buyers are required to qualify for a mortgage through approved lenders as well as apply for the VHFA programs to receive the benefit of the VFHA home buyer programs. Interest rates are at or below market value.
MOVE loans are available for only first time home buyers in certain targeted areas within Vermont and for all other homebuyers in all other parts of the state. All MOVE mortgage programs have income and purchase price limits. Loan terms are 30 years fixed fully amortizing loans which means principal and interest is due each month in the mortgage payment. Appropriate tax and insurance escrows are also due and payable on a monthly basis with the mortgage payment.
Vermont Home Buyer Program For Manufactured Housing
VHFA offers mortgage options for existing and new single and double wide manufactured homes (formerly called mobile homes). Interest rates for these loans are higher than interest rates for traditional stick built homes and available for purchase transactions only. Eligible properties must meet certain foundation requirements, positioned in either borrower owned land or in approved mobile home parks, and the wheels and hitch mount (tongue) must be removed. Homes that are newer than 1976 may have a 30 year mortgage term whereas units older than 1976 are limited to a mortgage length of 20 years.
Vermont Homeownership Opportunities Using Shared Equity – The HOUSE Program
This is a unique mortgage loan program available to home buyers working with a nonprofit housing agency to purchase their home. The home buyer must agree to share their home’s equity with future buyers of their home in exchange for home buying purchase assistance in the present day. This program is available for both stick built and manufactured homes.
The VHFA Limited Refinance Program
This program is designed to allow manufactured (mobile home) home owners an opportunity to refinance out of high interest rate mortgages as long as the mobile home and borrower meet certain requirements. Also, home owners who purchased their home with the HOUSE program can refinance into this loan program provided they meet program eligibility and property requirements.
Cash Assistance Down Payment And Closing Cost Program In Vermont
VHFA offers a forgivable second mortgage to homebuyers who need down payment and closing cost assistance called Cash Assistance. This mortgage program will provide up to 3% of the first mortgage loan amount, or the actually down payment and closing cost amount due on the first mortgage at the time of closing, whichever is lower. Homebuyers buying a traditional stick built home can use the Cash Assistance mortgage to help buy their home. Manufactured housing property home buyers may not use the Cash Assistance mortgage for their purchase.
This loan is offered at a 0% interest rate and must repaid if the VHFA first mortgage loan is paid in full within the first 5 years of the when the mortgage was given to the home buyer. After 5 years, the home buyer does not have to pay back the Cash Assistance mortgage if the first mortgage is paid in full.
For more detailed information on all VHFA first time home buyer and mortgage loan programs and down payment assistance programs or to find a participating lender visit the VHFA website: VHFA.org or call VHFA at: 802-864-5743 or 800-339-5866 (Toll-free in Vermont).