Vermont Home Loans 2026 — Complete Guide
Vermont offers up to $30,000 in combined VHFA down payment assistance, plus why the state's uncapped assessment system can push tax bills up sharply in a hot market.
The number people miss: Vermont has no statewide cap on how much a home's taxable value can rise at reassessment — unlike states with 3% or 5% annual limits, a hot local market can push your assessment up 10% to 25% in a single year, with no ceiling to protect you.
Vermont Down Payment Assistance — VHFA Programs
The Vermont Housing Finance Agency (VHFA) offers down payment assistance through ASSIST and a separate First Generation Homebuyer Grant, both paired with a VHFA MOVE first mortgage.
VHFA Down Payment Programs
ASSIST and First Generation can stack: If you qualify as a first-generation homebuyer, you can combine ASSIST's $5,000 deferred loan with the $15,000 First Generation grant for up to $30,000 combined. ASSIST alone is repaid only when the home is sold or the first mortgage is refinanced, while the First Generation portion never needs repayment at all. Note that ASSIST is not eligible alongside a VA loan.
Eligibility & Asset Limits
ASSIST requires first-time buyer status and compliance with VHFA's specific asset limitations — a stricter test than income alone. The First Generation grant, launched in November 2022 with ongoing annual funding, is available to buyers who, along with their parents or guardians, have never owned a home.
Confirm your exact eligibility and current program terms at VHFA.org before applying.
Current Rates
| Product | Rate | Source |
|---|---|---|
| 30-yr Conventional | 6.55% | Freddie Mac PMMS, week of July 16, 2026 |
| 15-yr Fixed | 5.93% | Freddie Mac PMMS, week of July 16, 2026 |
| VHFA MOVE first mortgage | Below market | Confirm current rate with a VHFA-participating lender |
2026 Loan Limits by County
Chittenden, Franklin, and Grand Isle counties (Burlington metro) carry an elevated FHA limit. Vermont's remaining counties use the standard floor, and conforming limits stay flat statewide.
| Loan Type | Standard Counties | Chittenden, Franklin & Grand Isle |
|---|---|---|
| FHA | $541,287 | $575,000 |
| Conventional (Conforming) | $832,750 statewide — flat, no high-cost counties | |
| VA | No county limit for buyers with full entitlement | |
Verify your exact county's FHA limit at HUD.gov before house-hunting.
Property Tax in Vermont — No Cap on Reassessments
What Buyers Should Budget For
Vermont funds its schools almost entirely through property tax, split into two rates on every bill: a "homestead" rate for owner-occupied primary residences (based on what your town voted to spend on education) and a uniform statewide "nonhomestead" rate for everything else, including second homes and rentals. Each town's rate is adjusted annually by its Common Level of Appraisal (CLA), a correction factor tied to how much the town's assessments lag or lead current market value — Act 183, passed in 2024, updated the underlying funding formula starting with the 2025-2026 tax year, though it doesn't change how much any individual owes. Critically, Vermont places no cap on how much a home's assessed value can grow at reassessment, so a hot local market can translate into a genuinely large one-year jump — 10% to 25% is not unusual. Every homestead owner must file a Homestead Declaration (Form HS-122) annually by the April deadline — unlike most states' one-time filing, this must be renewed every year to get the homestead rate rather than the higher nonhomestead rate. The Household Income Credit adjusts the education tax burden based on income for those who qualify.
Pick Your Loan Type
Are you a teacher, nurse, firefighter, police officer, EMT, or veteran? Vermont may run additional hero-specific loan programs on top of the general VHFA options covered here. Browse the Hero Home Loan Programs hub and select Vermont for profession-specific options.
Frequently Asked Questions
Bottom Line: Vermont's VHFA programs — especially the combinable ASSIST and First Generation grants — can cover a meaningful share of upfront costs for eligible buyers. The real long-term risk to plan around is property tax: with no cap on reassessment growth, don't assume your bill will stay predictable year to year, especially if you're buying in a fast-appreciating town.
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