How much down payment do I need to buy a house in Vermont?

You can buy a home in Vermont with as little as 0% down (VA/USDA), 3% down ($10,950 conventional), or 3.5% down ($12,775 FHA) on the median-priced home of $365,000.

What income do I need to buy a home in Vermont?

To afford the median-priced home in Vermont ($365,000) with a 30-year mortgage at 6.18%, you typically need a household income of approximately $90,310 per year (using the 28% rule). The median income in Vermont is $63,477.

What is the FHA loan limit in Vermont for 2026?

The FHA loan limit in Vermont for 2026 is $472,030. This means first-time buyers using FHA loans can finance up to this amount with just 3.5% down payment.

First-Time Home Buyer Vermont 2026

Q: What first-time home buyer programs are available in Vermont?

Vermont offers 2 major first-time buyer programs including VHFA MOVE Mortgage, VHFA ASSIST Second Mortgage. These programs provide grants, forgivable loans, and below-market rates to help with down payment and closing costs.

Your complete guide to buying your first home in Vermont. 2+ down payment assistance programs, FHA loans from 5.98%, and step-by-step guidance.

Median Price

$365,000

Min Down (FHA)

$12,775

DPA Programs

Best Rate

5.98%

Check My Vermont Eligibility

What First-Time Buyer Programs Are Available in Vermont?

Vermont offers 2 major first-time home buyer assistance programs. These include VHFA MOVE Mortgage, VHFA ASSIST Second Mortgage. Programs provide up to Rate reduction in down payment assistance through grants, forgivable loans, and below-market interest rates.

How Much Do I Need to Buy in Vermont?

You can buy a home in Vermont with as little as $0 down. VA and USDA loans require zero down payment. FHA loans need just 3.5% ($$12,775), and conventional loans start at 3% ($$10,950) on the median price of $365,000.

Loan Type	Down Payment	$ Amount	Monthly P&I	Min Credit
VA Loan	0%	$0	$2,172	620
USDA Loan	0%	$0	$2,231	640
Conventional 3%	3%	$10,950	$2,164	620
FHA Loan	3.5%	$12,775	$2,107	580
Conventional 20%	20%	$73,000	$1,785	620

Vermont Down Payment Assistance Programs

VHFA MOVE Mortgage

Below-market fixed rate

Up to Rate reductionlow interest

VHFA ASSIST Second Mortgage

DPA as second mortgage

Up to $15,000deferred

5 Steps to Buy Your First Home in Vermont

To buy your first home in Vermont, start by checking your credit score, getting pre-approved, and researching DPA programs. The entire process typically takes 30-60 days from pre-approval to closing. Here's your step-by-step roadmap.

Check Your Credit & Finances

Review your credit score (aim for 620+), calculate your debt-to-income ratio, and save for closing costs. In Vermont, you may need as little as $12,775 for an FHA down payment.

Get Pre-Approved

Compare rates from at least 3 lenders. Current Vermont rates: 6.18% (30-year), 5.98% (FHA). Pre-approval shows sellers you're serious and locks your rate.

Apply for Vermont DPA Programs

Vermont has 2+ DPA programs. The VHFA MOVE Mortgage offers up to Rate reduction. Apply early—funding can be limited.

House Hunt & Make an Offer

Popular cities in Vermont: Burlington, South Burlington, Rutland, Essex, Bennington. Median price is $365,000 (+7.5% YoY). Work with a local real estate agent who knows the market.

Close on Your New Home

Closing costs in Vermont typically run 2-5% of the purchase price ($10,950-$18,250). Some DPA programs also cover closing costs.

Start Your Vermont Home Buying Journey

Get pre-approved in minutes and see what you qualify for.

Get Pre-Approved Now

Vermont First-Time Buyer FAQ

What first-time home buyer programs are available in Vermont?

Vermont offers 2 major programs: VHFA MOVE Mortgage, VHFA ASSIST Second Mortgage. These provide grants, forgivable loans, and below-market rates for down payment and closing cost assistance.