Thanks to a bill just passed by large majorities in both houses and signed by the governor, the Vermont Housing Finance Agency (VHFA) will soon be able to offer qualified first-time homebuyers a leg up in the form of a $5,000 “sleeping” loan.

The $5,000 assistance be in the form of a zero interest loan, with no payments. The loan is repaid when the homeowner sells their home or refinances.

In email correspondence with Brattleboro Buyer Brokerage, Seth Leonard, VHFA Homeownership Outreach Coordinator, wrote:

“The passage of the legislation and subsequent bill signing has enabled to initiate the program funding and design stages. It will likely be August before VHFA will be ready to present the program structure, qualification considerations, and funding details. We have to finish designing the program and preparing it for launch. At that time we will first train our Participating Lenders on the program so they are prepared to offer the program, prior to a larger public push to increase awareness.”

The downpayment assistance is part of S.138 – An act relating to promoting economic development. The text of S.138 explains how first time homebuyer downpayment assistance will have a positive impact on economic develop:

VHFA; Down Payment Assistance Program * * * Sec. G.6. DOWN PAYMENT ASSISTANCE PROGRAM; FINDINGS The General Assembly finds:

1. The Federal Bipartisan Policy Center’s Housing Commission notes that homeownership can produce powerful economic, social, and civic benefits that serve the individual homeowner, the larger community, and the nation.
2. Supporting more Vermonters to become homeowners allows them an opportunity to improve and invest in their neighborhoods and become stable members of their community’s life and workforce.
3. Homeownership, even with the recent decline in housing values, has continued to be the most reliable source of individual wealth accumulation and equity for the future.
4. First-time homebuyers often delay purchasing a home due to the fees and down payment costs required at closing and need support to achieve their homeownership opportunity.