hey prescott.
See what you qualify for

Down Payment Assistance Loan

Multiple, Vermont

Last verified
See what you qualify forOfficial program site →
Repayment

Deferred

No payments until the home is sold or refinanced

What is Down Payment Assistance Loan?

Down Payment Assistance Loan is a deferred second loan for homebuyers in Multiple, Vermont.

  • NWWVT's Down Payment Assistance Loan: typically up to $20,000 deferred 0% second-mortgage DPA for low- and moderate-income homebuyers in Western Vermont (Rutland, Bennington, Addison, Windsor, Windham counties). Case-by-case structuring after homebuyer counseling. Pairs with VHFA, USDA, FHA, VA, or NWWVT in-house first mortgage.
  • NeighborWorks of Western Vermont (NWWVT) provides a Down Payment Assistance Loan typically up to $20,000 as a 0% interest deferred-payment second mortgage to qualifying low- and moderate-income homebuyers in Western Vermont (Rutland, Bennington, Addison, and parts of Windsor / Windham counties). The DPA is layered with NWWVT's in-house first-mortgage program or with a participating-lender first mortgage (VHFA MOVE / ADVANTAGE, USDA, FHA, VA). Specific dollar amounts, income limits, and FICO minimums vary by funding source (HOME, AHP, NeighborWorks America, Vermont state appropriations) and by individual borrower scenario - NWWVT structures DPA on a case-by-case basis after a homeownership counseling intake. Pre-purchase homebuyer education and one-on-one counseling required. Service area covers all NWWVT counties in Western VT.
  • Funding comes from Federal, State, and Other.

Do you have to pay it back?

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

  • Repayment is triggered by Typical structure: deferred 0% second mortgage with full balance due on sale, refinance with cash-out, transfer of title, or non-owner-occupancy. Some sub-programs (HOME-funded) include partial forgiveness over an affordability period (typically 5-15 years per HOME federal regulations). Repayment terms confirmed in promissory note at closing.
  • 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?

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

The program requires

  • First-time homebuyer — with exceptions: First-time-homebuyer requirement may be waived for HOME-funded transactions under certain conditions (federally targeted areas, displaced homemakers, single parents). Confirmed at intake.
  • The home is occupied as a primary residence
  • On credit: Specific minimum FICO not publicly published; varies by funding source and first-mortgage overlays. NWWVT works with borrowers to credit-improve through counseling if needed.
  • A completed homebuyer education course, through NWWVT in-house homebuyer education and one-on-one counseling (HUD-approved housing counseling agency). eHome America online classes also accepted.
  • Residency: Property must be located within NWWVT's Western Vermont service area: Rutland, Bennington, Addison, Windsor, Windham counties. Must be borrower's primary residence.
  • Citizenship or immigration status: U.S. citizen, permanent resident, or qualifying non-permanent resident alien per first-mortgage product overlays. HOME-funded DPA requires lawful presence per 24 CFR 5.508.
  • Pre-purchase homebuyer education (eHome America or NWWVT in-house) AND one-on-one housing counseling session with NWWVT counselor required. Owner-occupied primary residence. Property must be located in NWWVT service area (Rutland, Bennington, Addison, Windsor, Windham counties). Income limits apply per funding source (HOME 80% AMI, NeighborWorks America moderate-income, AHP varies) - typically up to 80%-120% AMI depending on layered funding. First-time homebuyer typically required. Specific FICO, DTI, and dollar limits assigned case-by-case after counseling intake. NWWVT origination fee may apply.

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

Down Payment Assistance Loan sets its income limit as follows: Income limits vary by funding source: HOME funds capped at 80% AMI; NeighborWorks America and state-appropriated funds may go up to 120% AMI; AHP grants typically 80% AMI. Limits set county-by-county per HUD AMI tables (Rutland, Bennington, Addison, Windsor, Windham). NWWVT counselor confirms applicable limit at intake.

  • 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?

Down Payment Assistance Loan caps the purchase price as follows: Purchase price limits vary by funding source - typically aligned with VHFA's acquisition cost limits ($450,000-$500,000) or HOME program limits per county. Confirmed at intake with NWWVT counselor.

  • Eligible property types include Single-family detached, 2-4 unit owner-occupied (with rental income restrictions per HOME), condominium, townhouse, PUD, manufactured home on permanent foundation (titled as real property).
  • New construction is eligible.
  • Manufactured homes are eligible.

Is there eligibility for specific groups?

Down Payment Assistance Loan 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?

Down Payment Assistance Loan serves buyers purchasing in Multiple, Vermont.

  • The program targets specific areas: NWWVT service area: Rutland County, Bennington County, Addison County, plus portions of Windsor and Windham counties in Western Vermont. Some funding sources prioritize specific census tracts (HOME-eligible, USDA-rural, NeighborWorks America priority neighborhoods).

How do you apply?

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

  1. Take a homebuyer education course

    Required by the program, through NWWVT in-house homebuyer education and one-on-one counseling (HUD-approved housing counseling agency). eHome America online classes also accepted..

  2. Contact the administering agency to reserve funds

    Funds are reserved through Application via NWWVT's homeownership intake process. Counselor reviews funding-source eligibility, structures DPA, and coordinates with first-mortgage lender. (802) 438-2303., and are subject to availability.

  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.

Other programs in Multiple, Vermont

See every program in Multiple, Vermont →

90-second match

Not sure which you qualify for?

Answer 9 questions and we'll match you to every program you can actually use — in about 90 seconds. No SSN, no credit pull.

Find my programs