First Time Home Buyer in VermontIf you are looking to buy your 1st home, you've come to
the right place. Fill out the form on the right to get started.

Today’s Rates for First Time Homebuyers in Vermont

Mortgage rates are at 3.00% for the 30 year fixed loan program and at 2.56% for the 15 year fixed. As for variable rates, the 5/1 ARM rate currently stands at 4.56%. Check out FHA and VA rates as well if you are doing low or no down payments.

Vermont First Time Home Buyer Checklist

1. Decide on your loan program options. If you're moving to an eligible area, you may qualify for a zero down payment loan through USDA. Veterans may be eligible for VA loans, which do not require cash down. The content in the paragraphs below should give you an idea of where you may fall. 
2. Get familiar with your credit score. Your credit should fall somewhere above 600, but few lenders accept scores in the high 500s. If your credit score needs a boost, work on improving it before you try to take out a mortgage. Once annually, you're able to request a free credit report from the three major credit bureaus, Equifax, Experian or TransUnion. 
3. Shop interest rates from different lenders in your part of Vermont. Choose one who not only provides a great offer, but carries a high rating from the Better Business Bureau.
4. Get pre-approved. Once you've picked a lender, provide income documentation with your last two pay stubs and tax returns from the past two years. 
5. Determine a budget. You could be pre-approved for a loan amount that is bigger than you had anticipated, but do not base affordability on the sum provided. Remember - pre-approvals are not guaranteed, and only you know what you can truly afford. 
6. Begin home shopping. Be sure to avoid making extravagant purchases, taking out new installment loans, or anything else that could weaken your financial standing. Lenders will check your accounts again before closing your loan.  

Low Down Payment Loans Through FHA

If you’re a first time home buyer without a lot to put down, a Vermont FHA loan may accommodate you. FHA loans are backed by the government and designed to help home buyers with limited upfront funds receive financing.

• Down payment: 3.5%
• Minimum acceptable credit score: 580 (varies)
• Mortgage insurance: Upfront (1.75% loan amount) and monthly
• Property guidelines apply and are verified via home inspection

You can find additional information about FHA loans on the Vermont page of the FHA website.

No Down Payment Loans Through USDA

The United States Department of Agriculture backs home loans for zero down to Vermont home buyers looking to move to or live in rural areas. Find out if your buying city is eligible by searching the USDA's property map. Note that popular areas like Montpelier and Burlington are not eligible. 

• Down payment: None required; financing up to 102% available depending on home appraisal
• Minimum acceptable credit score: 620
• Mortgage insurance: Upfront (2% loan amount) and monthly
• Income maximums apply 

Vermont Grant and Assistance Programs

The Vermont Housing Finance Agency (VHFA) offers two loan products that come with down payment and closing cost assistance.

The VHFA Advantage program offers a fixed-rate mortgage for comparatively low interest, as well as a cash gift equal to 2.5% the total loan amount. Financing can be facilitated with a government or conventional loan. Applicants must meet income requirements and the home must serve as a primary residence. 

The Move MCC program offers the same 2.5% grant but also a mortgage tax credit that allows participants to claim 20% of the annual interest paid on their mortgage to free up more cash normally withheld from each paycheck due to federal income tax. 

There are no geographic restrictions so popular cities like Burlington and Montpelier are eligible. Visit the VHFA site for more information and to determine your eligibility. 

Lenders in: Vermont.