Vermont Public is independent, community-supported media, serving Vermont with trusted, relevant and essential information. We share stories that bring people together, from every corner of our region. New to Vermont Public? Start here.

© 2024 Vermont Public | 365 Troy Ave. Colchester, VT 05446

Public Files:
WVTI · WOXM · WVBA · WVNK · WVTQ · WVTX
WVPR · WRVT · WOXR · WNCH · WVPA
WVPS · WVXR · WETK · WVTB · WVER
WVER-FM · WVLR-FM · WBTN-FM

For assistance accessing our public files, please contact hello@vermontpublic.org or call 802-655-9451.
Play Live Radio
Next Up:
0:00
0:00
0:00 0:00
Available On Air Stations

First-Time Homebuyers Eligible For $5,000 In Down Payment Assistance

Muriel Jane Waissman
/
istock
First-time home buyers in Vermont are getting some help with the expenses that come with buying a house. A new program will offer up to $5,000 for closing costs and down payments.

First-time home buyers in Vermont are getting some help with the expenses that come with buying a house. Legislation signed by Gov. Peter Shumlin last week includes up to $5,000 for closing costs and down payments.

That program will be administered by the Vermont Housing Finance Agency, but VHFA doesn't directly lend money to homebuyers. Instead, they work with participating lenders like credit unions and community banks. "They'll go into one of those institutions, be qualified for one of the VHFA programs and it would be there that they'll get the down-payment assistance", said VHFA executive director Sarah Carpenter. The down payment assistance money will be paid back as a zero interest loan when the home is sold or refinanced.
 
Low and moderate income Vermonters who make up to $100,000 qualify for the VHFA programs.  "We understand that many working families are in that range searching for a home," Carpenter said.

"What we're seeing these days is just an increase in closing cost fees, down payment requirements and for a lot of home buyers, especially young families, saving that cash is very difficult. They've got student loans to pay, they're paying high rents, so it's a real sort of cash flow problem, getting the cash up front to buy that first home is very problematic," Carpenter said, adding that VHFA sees many eligible homebuyers still renting apartments.

"What we're seeing these days is just an increase in closing cost fees, down payment requirements and for a lot of home buyers, especially young families, saving that cash is very difficult. " -Sarah Carpenter, VHFA

A recent study showed a family has to make $21 per hour to rent a decent 2-bedroom apartment in Vermont, often paying as much as a mortgage payment, and those high costs prevent people from saving the money they need for a down payment. Down payment requirements are also high, because of tightened credit requirements. Those factors keep people in the rental market, despite low interest rates that might spur interest in home buying. Carpenter said there are certain parts of the state that are still low on housing stock under $200,000, especially in the Champlain Valley.

For people who might not know where to begin when it comes to buying a home, Carpenter recommends the home buying program offered by the alliance of Neighborworks organizations which provides home ownership counseling. "They'll sit down with you, look at your credit, look at how much you can afford, look at any barriers you might have, and walk you through the process of home buying," she said.

The homebuyer tax credit will be available to about 110 buyers each year for three years, and the program will begin in the fall.

Melody is the Contributing Editor for But Why: A Podcast For Curious Kids and the co-author of two But Why books with Jane Lindholm.
A graduate of NYU with a Master's Degree in journalism, Mitch has more than 20 years experience in radio news. He got his start as news director at NYU's college station, and moved on to a news director (and part-time DJ position) for commercial radio station WMVY on Martha's Vineyard. But public radio was where Mitch wanted to be and he eventually moved on to Boston where he worked for six years in a number of different capacities at member station WBUR...as a Senior Producer, Editor, and fill-in co-host of the nationally distributed Here and Now. Mitch has been a guest host of the national NPR sports program "Only A Game". He's also worked as an editor and producer for international news coverage with Monitor Radio in Boston.
Latest Stories