Mortgage in Vermont
If you love to ski, snowboard, and explore the outdoors, Vermont is an ideal state for you! Known for its maple syrup and Ben and Jerry's, Vermont is a beautiful, sparsely populated state. Its entire population is only 625,000 — less than many major cities! Despite its small population, Vermont has higher-than-average housing costs . If you're thinking of moving to Vermont, especially from a lower cost-of-living state, use our Vermont mortgage calculator to make sure a move makes sense financially.
Mortgage Options in Vermont
If you're looking to buy a home or condo in Vermont, you should know about three types of mortgages.
- Vermont conventional mortgage: Conventional mortgages have two subtypes. The first is a "conforming" loan, meaning the home costs less than approximately $550,000. For these loans, buyers need a 3% down payment and a 620+ credit score. The second type is a "jumbo" loan, priced above the $550k limit. For these, banks typically require 20% down and a credit score of at least 700.
- Vermont FHA mortgage: FHA loans are tricky in Vermont due to the elevated housing costs. However, if you find a home that qualifies, you can get an FHA loan with as little as 3.5% down and a credit score of 580+.
- Vermont VA mortgage: Current and former military members have access to mortgages backed by the Veterans Administration. These loans require 0% down and come with additional perks, like no private mortgage insurance.
If you're already a homeowner, the choices above are the only ones available to you. First-time homebuyers, however, have other options.
First-Time Home Buyer Programs in Vermont
The Vermont Housing Finance Agency offers four programs to help first-time homebuyers get into their first property.
ASSIST
ASSIST is Vermont's down payment and closing cost program. It provides homeowners with up to $5,000 as a 0% loan with no monthly payments. The state considers ASSIST repaid when you sell, refinance, or pay off your mortgage.
Eligibility Criteria: Borrowers cannot have more than $30,000 in assets. Income and purchase price limitations apply. Additionally, borrowers must take a homebuyer education class.
Advantage
This program provides eligible homebuyers with a mortgage that saves on taxes, has low down payment options, and has lower monthly mortgage insurance premiums. You can use this program with ASSIST.
Eligibility Criteria: Income and purchase price limitations apply. Borrowers must complete a homebuyer education class.
MOVE
MOVE is similar to Advantage, except that it offers a lower interest rate. All the other benefits are the same.
Eligibility Criteria: Like Advantage, income and purchase price restrictions apply for this program. Homebuyer education is also required.
Mortgage Credit Certificate
The mortgage credit certificate makes homeownership more affordable by giving eligible borrowers up to $2,000 back at tax time. The certificate lets people claim a portion of the interest they pay as a non-refundable tax credit.
Eligibility Criteria: Purchase price and income restrictions apply.
Vermont Mortgage Calculator: How Much Will a Home Cost You?
With so much going for it, Vermont is a fantastic place to live. If you're looking to move to this small but exciting state, use our Vermont mortgage calculator to see how much a home will cost you per month.
