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Homebuyer Programs in Bennington, VT (2026)

Last updated April 5, 2026 | Population: 8,845 | Median home price: $220,000 | Est. closing costs: $4,500 - $6,500

Skyline of Bennington, VT

Bennington is a small town in southwestern Vermont known for its rich Revolutionary War history, proximity to the Green Mountains, and a growing arts community. With a median home price around $220,000, Bennington offers some of the most affordable housing in the state. Homebuyers here can tap into the VHFA ASSIST program for up to $10,000 in down payment assistance, the VHFA First Generation Homebuyer Grant for up to $15,000, and the NeighborWorks of Western Vermont Down Payment Assistance Loan for up to $50,000 or 20% of the purchase price. The Cornerstone Housing Partners Shared Equity Program provides a 20% down payment grant for buyers in Bennington County, and Bennington County Habitat for Humanity offers zero-interest mortgages for qualifying families. By stacking state and local programs, eligible buyers in Bennington can secure significant assistance toward their home purchase.

Top Homebuyer Programs in Bennington

FHA Loans
Type:
Government-Insured Mortgage
Amount:
Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026)
First-time only:
No
FHLBA Community Partners Product
Type:
Forgivable Loan
Amount:
Up to $20,000 in home purchase assistance for down payment and closing costs
First-time only:
No
FHLBA First Time Homebuyer Product
Type:
Forgivable Loan
Amount:
Up to $17,500 in home purchase assistance for down payment and closing costs
First-time only:
Yes
FHLBA Workforce Housing Plus+
Type:
Forgivable Loan
Amount:
Up to $15,000 in home purchase assistance for down payment and closing costs
First-time only:
No
Good Neighbor Next Door (HUD)
Type:
Government Property Sale Program
Amount:
50% discount off the list price of HUD-owned homes
First-time only:
Yes
Home Possible Mortgage (Freddie Mac)
Type:
Government-Guaranteed Mortgage
Amount:
Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
First-time only:
No
HomeReady Mortgage (Fannie Mae)
Type:
Government-Guaranteed Mortgage
Amount:
Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
First-time only:
No
HUD $100 Down Program
Type:
FHA-Financed HUD REO Purchase
Amount:
Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs.
First-time only:
No
USDA Rural Development Loans
Type:
Government-Guaranteed Mortgage
Amount:
100% financing (no down payment required); loan amount up to appraised value
First-time only:
No
VA Loans
Type:
Government-Guaranteed Mortgage
Amount:
No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026)
First-time only:
No
Bennington County Habitat for Humanity Homeownership Program
Type:
Zero-Interest Loan
Amount:
Affordable home purchase with zero-interest mortgage; $500 down payment required
First-time only:
No
Cornerstone Housing Partners Shared Equity Program
Type:
Grant
Amount:
20% down payment grant through shared equity model; purchase at below-market price
First-time only:
Yes
NorthCountry Federal Credit Union Equity Builder Program
Type:
Grant
Amount:
Up to $25,000 in down payment and closing cost assistance
First-time only:
Yes
Vermont Federal Credit Union Seed Money Program
Type:
Grant
Amount:
Up to $7,500 (3% of purchase price)
First-time only:
Yes
NeighborWorks of Western Vermont Down Payment Assistance Loan
Type:
Repayable Loan
Amount:
Up to $50,000 or 20% of purchase price, whichever is lower
First-time only:
No
VHFA ASSIST Down Payment Assistance
Type:
Deferred Loan
Amount:
Up to $10,000
First-time only:
Yes
VHFA First Generation Homebuyer Grant
Type:
Grant
Amount:
Up to $15,000
First-time only:
Yes
VHFA MOVE MCC (Mortgage Credit Certificate)
Type:
Tax Credit
Amount:
Federal tax credit based on mortgage interest paid annually
First-time only:
Yes
VHFA MOVE Mortgage Program
Type:
Government-Insured Mortgage
Amount:
Below-market interest rate mortgage with down payment as low as 0-5%
First-time only:
Yes

How to Apply

  1. Step 1:

    Check your eligibility. Most programs require income at or below 80-120% of Area Median Income for Bennington County. The VHFA MOVE program requires that you have not owned a home in the past 3 years if purchasing in Bennington County.

  2. Step 2:

    Complete homebuyer education. Cornerstone Housing Partners offers HUD-approved homebuyer education courses in the Bennington area. Contact them at 802-304-4148 to register. Course fee is $100.

  3. Step 3:

    Contact a local housing counselor. Cornerstone Housing Partners and BROC Community Action (802-775-0878) both serve Bennington County and can help you create a personalized plan, assess program eligibility, and improve your financial readiness.

  4. Step 4:

    Get pre-approved for a mortgage. Work with a VHFA-participating lender to explore MOVE mortgage options with rates as low as 0-5% down. The Bank of Bennington also offers a first-time homebuyer program.

  5. Step 5:

    Apply for down payment assistance. Submit applications for the VHFA ASSIST program (up to $10,000), the VHFA First Generation Homebuyer Grant (up to $15,000 for first-generation buyers), or the NeighborWorks of Western Vermont DPA Loan (up to $50,000).

  6. Step 6:

    Find a home and close. Work with your lender and housing counselor to find a home within any applicable program price limits, then complete your purchase with your assistance funds applied at closing.

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