First Generation Homebuyer Program

What is First Generation Homebuyer Program?

First Generation Homebuyer Program is a grant for homebuyers in Statewide, Vermont.

• VHFA's First Generation Homebuyer Program: $15,000 GRANT for Vermont first-generation homebuyers (parents have not owned in past 3 years, or borrower aged out of foster care). State-appropriated, no repayment. Layers with $15,000 ASSIST DPA second for combined up-to-$30,000. 640 FICO. Statewide.
• VHFA's First Generation Homebuyer Program provides a $15,000 GRANT (not a loan, not forgivable, not repayable - a TRUE grant) to first-generation Vermont homebuyers. The grant funds down payment and closing costs and stacks ON TOP OF VHFA's standard $15,000 ASSIST DPA second mortgage, for combined assistance up to $30,000. Funded by Vermont state appropriation (Act 79 / 2022 Vermont budget). Eligibility: borrower (and any co-borrower) qualifies as 'first-generation' if (a) borrower's parents have not owned a home in the past 3 years, or (b) borrower aged out of foster care. The First Gen program features higher income limits than the standard ASSIST baseline (up to approximately $180,000 in higher-cost VT counties for larger households per VHFA First Gen FAQ.
• baseline $110,000 in lower-cost areas), reflecting the program's anti-wealth-gap focus rather than strict low-income targeting. Maximum purchase price up to $550,000 in higher-cost / targeted counties. Pairs with VHFA MOVE / ADVANTAGE first mortgage and ASSIST DPA second. 640 FICO minimum. Homebuyer education required. Statewide.
• Funding comes from State.

Do you have to pay it back?

First Generation Homebuyer Program is structured as a grant, so it is not repaid.

• Repayment is triggered by TRUE GRANT - no repayment, no lien, no forgiveness schedule. Funds disbursed at closing toward down payment / closing costs. Borrower retains the $15,000 free and clear (subject to first-generation eligibility certification at application and misrepresentation may trigger clawback per VHFA program disclosure).
• The assistance is recorded in No 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?

First Generation Homebuyer Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

First Generation Homebuyer Program limits household income to $180,000.

• 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?

First Generation Homebuyer Program caps the purchase price at $550,000.

• 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?

First Generation Homebuyer Program names veterans, active-duty service members, reservists and National Guard members, surviving spouses, and first-generation buyers 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?

First Generation Homebuyer Program 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. Higher-cost county tier (Chittenden and others) has elevated income limits up to ~$180,000 for First Gen.

How do you apply?

Applications for First Generation Homebuyer Program 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. Borrower must complete VHFA First Generation Homebuyer Eligibility Affidavit at application., 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.