The VHFA ASSIST Second Mortgage is a zero-interest, no monthly payment loan offered by the Vermont Housing Finance Agency (VHFA) to help eligible homebuyers in Vermont cover down payment and closing costs. This program is especially useful for low- and moderate-income households who qualify for VHFA’s mortgage loan programs but need help with upfront expenses.
❓ What Is the VHFA ASSIST Second Mortgage?
The ASSIST program provides a second mortgage loan of up to $15,000 that can be used for down payment and/or closing costs. This loan:
- 📉 Charges 0% interest
- ⏳ Has no monthly payments
- 📆 Must be repaid when the home is sold, refinanced, or no longer the borrower’s primary residence
It’s offered in conjunction with a VHFA mortgage such as the MOVE, MOVE MCC, or Advantage loan programs.
✅ Who Qualifies for the VHFA ASSIST Program?
To be eligible for the VHFA ASSIST Second Mortgage, applicants must:
- 👨👩👧👦 Be a first-time homebuyer (or purchase in a targeted area)
- 🏠 Buy a home in Vermont that will be used as a primary residence
- 📉 Meet income and purchase price limits
- 📘 Complete a homebuyer education course
- 💼 Apply through a VHFA-participating lender
💵 Benefits of VHFA ASSIST Second Mortgage
- 💲 Receive up to $15,000 in assistance
- 📉 0% interest with no monthly repayment
- ⏳ Repayable only when the home is sold, refinanced, or vacated
- 🔗 Combine with VHFA MOVE or Advantage mortgages for low rates
📈 Why Use This Program in Vermont?
Vermont’s real estate market can be competitive, especially in areas like Burlington, Montpelier, and Brattleboro. Even with moderate home prices, many households struggle to save enough for the required down payment. The ASSIST program is a smart solution for buyers who can afford monthly mortgage payments but need help upfront.
This is particularly helpful for younger buyers, rural families, and renters transitioning to ownership.
📝 How to Apply for VHFA ASSIST
- 📞 Contact a VHFA-approved lender in Vermont
- 🧾 Apply for a VHFA mortgage product like MOVE, MOVE MCC, or Advantage
- 🎓 Complete a homebuyer education course
- 📂 Submit required documentation (W-2s, pay stubs, ID, etc.)
- 🏡 Close on your home and receive the ASSIST second mortgage funds at settlement
📋 Program Requirements Summary
- 📊 Minimum credit score: typically 640
- 📝 Meet VHFA income limits (adjusted by county and household size)
- 🏘 Home must be located in Vermont and used as primary residence
- 📘 Complete certified homebuyer education course
💡 Tips to Strengthen Your Application
- 📆 Start early—lender approval and education may take time
- 📋 Work with a lender who frequently uses VHFA programs
- 🧾 Keep your financial paperwork updated and ready
- 📞 Ask about combining ASSIST with municipal or employer-based assistance if available
🔍 Real Buyer Example
Dan and Erin, a couple from Barre, had good jobs but struggled to save a full down payment while renting. Through VHFA and the ASSIST program, they received $12,000 to help cover costs. With no monthly repayment, they were able to move into their new home and keep their budget intact.
❓ FAQs – VHFA ASSIST Second Mortgage
📌 Is the ASSIST loan a grant?
No. It is a zero-interest second mortgage. It must be repaid when you sell, refinance, or move out of the home. There are no monthly payments while you live in the home.
🔗 Can I use it with other down payment programs?
Yes. In some cases, buyers may combine ASSIST with local town, city, or employer assistance, as long as it’s allowed by all parties.
📊 What are the income limits?
They vary by county. For example, in Chittenden County, a family of 2 may qualify with a household income under ~$108,000. Your lender can confirm your eligibility.
🏘 What properties qualify?
Eligible homes include single-family residences, townhomes, condos, and manufactured homes (with land). The property must be in Vermont and owner-occupied.
🎯 Why Use VHFA ASSIST?
The VHFA ASSIST Second Mortgage is one of Vermont’s most effective programs for making homeownership accessible. It removes the burden of high upfront costs while offering a no-interest, no-monthly-payment loan that only becomes due when your circumstances change. If you want to buy a home in Vermont but need help getting started, this is the program to look at first.
📥 Apply Now via VHFA Official Website
