ASSIST Down Payment Assistance

What is ASSIST Down Payment Assistance?

ASSIST Down Payment Assistance is a deferred second loan for homebuyers in Statewide, Vermont.

• VHFA's ASSIST: $15,000 deferred 0% second-mortgage DPA pairing with VHFA MOVE / ADVANTAGE first-mortgage products. No monthly payment; full balance due on sale, refinance, transfer, or non-owner-occupancy. Statewide. 640 FICO. First-time homebuyer (waivers for targeted areas / veterans).
• VHFA's ASSIST program provides up to $15,000 in down-payment / closing-cost assistance as a 0% interest deferred-payment second mortgage. NO monthly payment. The full balance is repaid only at sale, refinance with cash-out, transfer of title, or when the home stops being the borrower's primary residence. ASSIST pairs with VHFA's MOVE first mortgage (30-year fixed FHA / VA / USDA-RD / HFA conventional), ADVANTAGE first mortgage (no-MI conventional for income-eligible borrowers), or VHFA Mortgage Credit Certificate (MCC) for additional federal-tax-credit benefit. Income limits follow VHFA's standard combined limits table (statewide income $110,000 baseline, up to $145,000 in higher-cost / targeted counties.
• verify by county and household size). Acquisition-cost limits range $450,000 non-targeted to $500,000 targeted/higher-cost. 640 minimum FICO. Maximum 45% DTI. Homebuyer education required. First-time-homebuyer requirement waived in federally targeted areas and for qualifying veterans.
• Funding comes from State and Bond.

Do you have to pay it back?

ASSIST Down Payment Assistance is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

• Repayment is triggered by Full $15,000 balance due on sale, refinance with cash-out, transfer of title, or when the home stops being the borrower's primary residence. No monthly payment. No forgiveness schedule (deferred soft second).
• The assistance is recorded in 2nd Lien position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

ASSIST Down Payment Assistance is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

ASSIST Down Payment Assistance limits household income to $145,000.

• The limit applies to total household income, not only the borrower’s.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

ASSIST Down Payment Assistance caps the purchase price at $500,000.

• Eligible property types include Single-family detached, 2-4 unit owner-occupied (per first-mortgage overlays), condominium (project-approved), townhouse, PUD, modular, and manufactured home on permanent foundation (titled as real property and per first-mortgage overlays).
• New construction is eligible.
• Manufactured homes are eligible.

Is there eligibility for specific groups?

ASSIST Down Payment Assistance names veterans, active-duty service members, reservists and National Guard members, and surviving spouses among the groups it serves.

• Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Where does it apply?

ASSIST Down Payment Assistance serves buyers purchasing in Statewide, Vermont.

• The program targets specific areas: Federally designated targeted census tracts (per IRS Section 143) where MRB first-time-homebuyer requirement is waived and higher income / acquisition-cost limits apply. Includes portions of Chittenden, Caledonia, Essex, and other counties per VHFA's targeted-areas list.

How do you apply?

Applications for ASSIST Down Payment Assistance go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through VHFA-approved homebuyer education provider (eHome America online or in-person classes via Champlain Housing Trust, NWWVT, NeighborWorks Northwestern Vermont, Downstreet Housing, RuralEdge, etc.) required prior to closing..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Reserved through VHFA's online lender portal at time of rate lock by approved participating lender., and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.