See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated April 5, 2026
Homebuyer Programs in Colchester, VT (2026)
Colchester is the third most populated town in Vermont, located in Chittenden County along the shores of Lake Champlain just north of Burlington. With a median home price around $490,000, it is one of the more desirable and higher-priced communities in the state. While the Town of Colchester does not currently offer its own municipal down payment assistance program, buyers here can access significant state and regional assistance. The VHFA ASSIST program provides up to $10,000 in zero-interest down payment assistance, and first-generation homebuyers may qualify for an additional $15,000 VHFA grant. The NorthCountry Federal Credit Union Equity Builder Program offers up to $25,000 for households at or below 80% AMI, and the Champlain Housing Trust provides shared equity homeownership and up to $25,000 through its Homeownership Equity Program for BIPOC buyers. By stacking programs, Colchester buyers could receive $25,000 or more toward their purchase.
State Programs in Vermont
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| NeighborWorks of Western Vermont Down Payment Assistance Loan | Repayable Loan | Up to $50,000 or 20% of purchase price, whichever is lower | No | View → |
| VHFA ASSIST Down Payment Assistance | Deferred Loan | Up to $10,000 | Yes | View → |
| VHFA First Generation Homebuyer Grant | Grant | Up to $15,000 | Yes | View → |
| VHFA MOVE MCC (Mortgage Credit Certificate) | Tax Credit | Federal tax credit based on mortgage interest paid annually | Yes | View → |
| VHFA MOVE Mortgage Program | Government-Insured Mortgage | Below-market interest rate mortgage with down payment as low as 0-5% | Yes | View → |
- Type:
- Repayable Loan
- Amount:
- Up to $50,000 or 20% of purchase price, whichever is lower
- First-time only:
- No
- Type:
- Deferred Loan
- Amount:
- Up to $10,000
- First-time only:
- Yes
- Type:
- Grant
- Amount:
- Up to $15,000
- First-time only:
- Yes
- Type:
- Tax Credit
- Amount:
- Federal tax credit based on mortgage interest paid annually
- First-time only:
- Yes
- Type:
- Government-Insured Mortgage
- Amount:
- Below-market interest rate mortgage with down payment as low as 0-5%
- First-time only:
- Yes
Federal Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| FHA Loans | Government-Insured Mortgage | Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026) | No | View → |
| Good Neighbor Next Door (HUD) | Government Property Sale Program | 50% discount off the list price of HUD-owned homes | Yes | View → |
| Home Possible Mortgage (Freddie Mac) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HomeReady Mortgage (Fannie Mae) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HUD $100 Down Program | FHA-Financed HUD REO Purchase | Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs. | No | View → |
| USDA Rural Development Loans | Government-Guaranteed Mortgage | 100% financing (no down payment required); loan amount up to appraised value | No | View → |
| VA Loans | Government-Guaranteed Mortgage | No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026) | No | View → |
- 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
- Type:
- Government Property Sale Program
- Amount:
- 50% discount off the list price of HUD-owned homes
- First-time only:
- Yes
- 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
- 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
- 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
- Type:
- Government-Guaranteed Mortgage
- Amount:
- 100% financing (no down payment required); loan amount up to appraised value
- First-time only:
- No
- 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
Nonprofit Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Champlain Housing Trust Homeownership Equity Program (HEP) | Deferred Loan | Up to $25,000 | Yes | View → |
| Champlain Housing Trust Shared Equity Homeownership | Deferred Loan | Below-market purchase price through shared equity model, plus down payment assistance | Yes | View → |
| Green Mountain Habitat for Humanity Homeownership Program | Zero-Interest Loan | Affordable home purchase with zero-interest mortgage | No | View → |
| NorthCountry Federal Credit Union Equity Builder Program | Grant | Up to $25,000 in down payment and closing cost assistance | Yes | View → |
| Vermont Federal Credit Union Seed Money Program | Grant | Up to $7,500 (3% of purchase price) | Yes | View → |
- Type:
- Deferred Loan
- Amount:
- Up to $25,000
- First-time only:
- Yes
- Type:
- Deferred Loan
- Amount:
- Below-market purchase price through shared equity model, plus down payment assistance
- First-time only:
- Yes
- Type:
- Zero-Interest Loan
- Amount:
- Affordable home purchase with zero-interest mortgage
- First-time only:
- No
- Type:
- Grant
- Amount:
- Up to $25,000 in down payment and closing cost assistance
- First-time only:
- Yes
- Type:
- Grant
- Amount:
- Up to $7,500 (3% of purchase price)
- First-time only:
- Yes
How to Apply
Step 1: Check your eligibility. Review income limits for VHFA programs, which vary by household size and county. For Chittenden County, VHFA income limits generally range from $100,000 to $140,000 depending on program and household size.
Step 2: Complete homebuyer education. Champlain Housing Trust has an office in Colchester at Winchester Place Apartments, 7 Douglas Drive, and is a HUD-approved counseling agency offering homebuyer education courses. Contact them at (802) 655-5250 or visit their main office at 88 King Street in Burlington at (802) 862-6244.
Step 3: Contact a VHFA participating lender. A participating lender can walk you through the VHFA MOVE mortgage, ASSIST down payment assistance, and First Generation Homebuyer Grant options. Find a lender at vhfa.org.
Step 4: Explore regional assistance programs. Contact NorthCountry Federal Credit Union about the Equity Builder Program, which offers up to $25,000 for households at or below 80% AMI. Vermont Federal Credit Union also offers up to $7,500 through its Seed Money program for first-time buyers.
Step 5: Get pre-approved for a mortgage. Your VHFA participating lender will process the first mortgage and any ASSIST or First Generation Grant assistance together.
Step 6: Find a home within program limits. VHFA purchase price limits for Chittenden County vary but generally range from $400,000 to $450,000 depending on property type. Note that Colchester's median price of $490,000 may exceed some limits.
Step 7: Submit your application and close. Once you have a purchase agreement, your lender will finalize the VHFA mortgage and any down payment assistance. Expect the process to take 30-60 days from application to closing.
Frequently Asked Questions
How much down payment assistance can I get in Colchester?+−
Does Colchester have its own town down payment assistance program?+−
Do I have to be a first-time homebuyer to qualify?+−
What is the maximum home price I can pay using these programs?+−
Where can I take homebuyer education in Colchester?+−
Are there programs for low-income families in Colchester?+−
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