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Be smart when it comes to your FHA loan and your financial future. Applicants must meet the First-Time Homebuyer Program requirements. Available with MOVE MCC or with a non-VHFA mortgage offered by aVHFA Participating Lender. In April 2022, the median list price of homes in Rutland was $244,500. That was an increase of 29.7% year-over-year, according to Realtor.com. In April 2022, the median list price of homes in South Burlington was $399,500.
You can combine any of the above three mortgages—Advantage, MOVE, and MOVE MCC—with VHFA’s ASSIST loan. ASSIST includes $5,000 as a financial benefit, intended for your down payment or closing costs. Vermont Housing Finance Agency offers reasonable down payments and competitive interest rates as low as 2.5% on FHA, VA, and USDA government loans. There is a mortgage credit certificate program for first-time homeowners and those who buy in targeted areas in Vermont. With it, you can claim a portion of your mortgage interest as a tax credit, up to $2,000.
ASSIST Down Payment and Closing Cost Assistance
FirstHomeAdvisor.com ® is an equal opportunity housing provider for first-time buyers. FirstHomeAdvisor.com has partnered with eHomeAmerica to offer an online homebuyer education course that you can take from the convenience of your own home computer for a modest fee of $99.00. You can get your Certificate of Completion today after completing the eight-hour course. This tax credit is for businesses that contribute substantially to the economy of a Vermont Rural Economic Area Partnership Zone. The purpose of this credit is to create or retain affordable housing for lower income Vermonters.
Jennifer Bradley Franklin is a multi-platform journalist and author, often covering finance, real estate and more. The $15,000 First-Time Home Buyer Tax Credit has precedent which makes it the most likely first-time buyer program to pass Congress. The bill for first-time buyers is modeled on the $8,000 First-Time Home Buyer Tax Credit from the 2008 Housing and Economic Recovery Act.
Other Vermont homebuyer assistance programs
It is up to the consumer to contact these entities and find out the specifics of each program. First-time homebuyers who are residents of the state of Vermont have a number of choices available when they start shopping for loans. It’s important to be well-versed on the mortgage options available.
On April 28, 2021, Congressman Earl Blumenauer introduced the First-Time Homebuyer Act of 2021. If passed, the bill would provide a federal tax credit similar to the original first-time homebuyer tax credit that expired in 2010. This is in contrast to a tax deduction, which reduces your taxable income. Depending on the mortgage loan you choose, you could potentially get into your new house with minimal cash out of pocket.
Vermont first-time home buyer programs
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While it’s still awaiting passage in Congress, if passed, the bill will provide a federal tax credit of up to $15,000 to first-time homebuyers. Very low- and low-income borrowers may make a 3% down payment on a Home Possible® mortgage. These loans allow various sources for down payments, including co-borrowers, family gifts, employer assistance, secondary financing, and sweat equity. VHFA’s ASSIST program offers a 0% interest loan with no monthly payments due on sale to help with down payment and closing costs, with a maximum loan amount of either $10,000 or $15,000 .
The First-Time Homebuyer Tax Credit is different from another housing-related bill, the Downpayment Toward Equity Act, which was also introduced this year. The Downpayment Toward Equity Act proposes to pay $25,000 cash to eligible home buyers to offset closing costs, taxes, and interest. However, the bill’s language is similar to another first-time buyer tax credit program – the First-Time Homebuyer Credit of 2009. That program required an additional IRS form to accompany the federal tax filing, and it’s expected that the 2021 version of the tax credit will do the same.
If you need a little extra help getting the necessary funds together, down payment assistance can make a monumental difference. Be sure to complete your Homebuyer Education course within 18 months before closing on your home and confirm that you meet the additional eligibility requirements. ASSIST, while technically a second mortgage, is a zero-interest loan with no mandatory monthly payments.
If you’re still looking for the first-time homebuyer credit, it unfortunately no longer exists. However, people who purchased homes before 2010 can still benefit from the tax credit initiative. Specifically, you may still be eligible if your closing took place on or before Sept. 30, 2010. People who purchased homes after 2010, however, won’t benefit from the tax credit. Yes, you can use your first-time home buyer tax credit to purchase a 2-unit, 3-unit, or 4-unit home so long as one of the units is your primary residence. We do not offer or have any affiliation with loan modification, foreclosure prevention, payday loan, or short term loan services.
Buying a home is exciting, but there are hoops you’ll have to jump through before you can call yourself a homeowner. Between organizing your financial documents, applying for a mortgage and scheduling anappraisal, the process can make your head spin. Asking some key questions along the way can make navigating the waters easier. The First-Time Homebuyer Act of 2021 text does not specify how to claim your tax credit. Eligible home buyers must earn an income that’s no more than 60 percent above the median income for the area. For example, in Columbus, Ohio where the median income is $60,000, home buyers who file their taxes as a single-earner may not have a household income of more than $96,000 per year.
Federal tax credit up to $2,000 each year borrowers live in the home and pay interest on the mortgage. When you’re ready to start the home buying process, make sure you get personalized rate quotes from at least three mortgage lenders. And to top it off, buyers using a VHFA mortgage may be in line for down payment assistance as well. In other words, let's say you receive a $15,000 credit when you purchase your home. You decide to sell it within the first 2 years of purchasing your home.
To find out if your project is eligible, contact the Vermont Housing Finance Agency. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey.
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