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Vermont Homeownership Programs and Financing Guide

Explore Vermont's homeownership programs and financing options such as VHFA low-interest loans, USDA Rural Development programs, and Vermont Community Land Trusts. Learn about resources, grants, and counseling available to help you achieve homeownership.

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Vermont Homeownership Programs and Financing Guide

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  1. Vermont Homeownership Programs and Financing

  2. AGENDA Programs • Vermont Community Land Trusts • Vermont HomeOwnership Centers Financing • VHFA • USDA Rural Development • VHCB HOMELAND • VSHA Homeownership Voucher Program

  3. Vermont Community Land Trusts • Developers • Owners of Affordable Rental Housing • NeighborWorks HomeOwnership Centers

  4. Vermont HomeOwnership Centers • Homebuyer’s Workshops • Counseling • Pre-purchase • Delinquency and Foreclosure • Resource and Referral to loan programs and products and housing professionals • Access to Grants • Revolving Loan Funds – • Health and Safety • Well and Septic • Energy Conservation www.vthomeownership.org

  5. VHFA • Offers low interest loans for eligible borrowers through participating banks, savings and loans, and credit unions. • Products • MOVE • Cash Assistance • HOUSE • Limited Refinance

  6. USDA Rural Development • Direct loan program (502) • Subsidized loans to eligible borrowers • Below 80% median income • Regional offices originate loans • Guaranteed Loan Program • Offered through local lenders • Eliminates need for down payment or mortgage insurance • Repair Loan Program (504)

  7. Community Land Trust Model • HOMELAND grants provide both initial and perpetual affordability. • One-time investment by the State. • Homeowners share appreciation when they sell

  8. HOMELAND Shared Appreciation Program What Happens When I Sell My Homeland House At Purchase Original Appraised Value $175,000 Original Purchase Price $175,000 CLT Grant -- $ 35,000 Original Net Purchase Price $140,000

  9. Appreciation that Owner Earns $50,000 x 25% = $12,500

  10. What Owner Makes on Sale $152,500 Option Price - $135,000 Pay off of Mortgage $ 17,500 = $12,500 appreciation + $5,000 mortgage principal

  11. Amount ‘Banked’ in Perpetual Trust Original Grant $35,000 Shared Appreciation + $24,000 TOTAL $59,000 $225,000 - $166,000 = $59,000

  12. VSHA Homeownership Voucher Program • Comparable to Section 8 Rental Voucher • Subsidizes PITI and maintenance costs of owning a home • Available to existing rental voucher holders. Waiting list to join is closed for people without rental vouchers.

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