Vermont Grants There are many grants available in this State to assist a home buyer purchase a home. By using these grants it makes it possible to purchase a home with little or no money down.  Below is a list of some of the grants available, as well as contact information for each. Some are State sponsored grants. Some are sponsored on the county or municipality level.  Understand that many of these grants have limited funding, and most have income restrictions, so it is important to work with your mortgage lender and the non profit administering the grant program to ensure availability of funds.  State Sponsored Bank Sponsored Matching Funds Programs Community/local Sponsored Grants Seller Funded Down Payment Assistance Programs State Sponsored  The Vermont Housing Finance Agency has a first time home buyer grant program available to be used with their First Time Homebuyer Mortgage programs. It is called - MOVE— Cash assistance rate. First time home buyers can get a cash assistance of 3% to be used for down payment and closing costs. This cash assistance turns into a grant after 4 years: after 48 months, the Cash Assistance mortgage loan is not required to be repaid. Below is a link to the State’s web site:  http://www.vhfa.org/homeownership/programs.php  Bank Sponsored Matching Funds Programs  Banks that are members of the Federal Home Loan Banking system also offer IDA savings accounts. Visit the Regional Federal Home Loan Bank web site for more information. Community/local Sponsored Grants Many counties have the ability to receive funds from the Department of Housing and Urban Development to give to county residence. These funds are usually available to low or moderate first time homebuyers and displaced single parents. Contact the Department of Community Affairs of the County you are thinking of buying in to see what is available.  Seller Funded Down Payment Assistance Programs There are several non profit organizations that allow a seller to “donate” funds to them at closing, which is then given to the buyer as a down payment assistance grant. Presently, the federal government is reviewing these programs to determine whether this practice is an acceptable lending practice. By using one of these programs it is possible to purchase a home with little or no money. The seller needs to be a motivated seller, and the home needs to be priced correctly. Usually the sales price is inflated to cover the “donation”. The home must be able to appraise at the inflated price. These programs are initiated by the lender, so it is important to work with a local lender before you start looking for a home. The lender will also know how present legislation is affecting the program. The two most commonly used programs are The American Dream DAP and The Nehemiah DAP. Below are links to their web site. American Dream:  http://www.americandreamdownpaymentassistance.com/dpa_app.cfm Nehemiah Corp:    http://www.nehemiahcorp.org/