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Homebuyer Programs in Rutland, VT (2026)

Last updated April 5, 2026 | Population: 15,457 | Median home price: $235,000 | Est. closing costs: $4,500 - $7,000

Skyline of Rutland, VT

Rutland is a small city in central-western Vermont and the county seat of Rutland County, offering one of the more affordable housing markets in the state with a median home price around $235,000. While the City of Rutland does not offer its own municipal down payment assistance, buyers here benefit from strong state and regional programs. 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. Cornerstone Housing Partners offers a shared equity program with 20% down payment grants for Rutland County buyers, and the NorthCountry Federal Credit Union Equity Builder Program provides up to $25,000. Habitat for Humanity of Rutland County builds new homes in the $103,000 to $136,000 range for qualifying families. By combining state and local programs, Rutland buyers could access $25,000 or more in assistance toward an already affordable market.

Top Homebuyer Programs in Rutland

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
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
Habitat for Humanity of Rutland County Homeownership Program
Type:
Zero-Interest Loan
Amount:
New construction homes at affordable prices ($103,000-$136,000 range); zero-interest mortgage
First-time only:
No
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. Review income limits for VHFA programs, which vary by household size and county. For Rutland County, VHFA income limits generally range from $100,000 to $140,000 depending on program and household size.

  2. Step 2:

    Complete homebuyer education. Cornerstone Housing Partners (formerly NeighborWorks of Western Vermont) offers homebuyer education at their West Rutland office at 110 Marble Street for $99 per household. They also offer free one-on-one counseling with HUD-certified counselors. Contact them at (802) 438-2303.

  3. 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.

  4. Step 4:

    Explore regional assistance programs. Cornerstone Housing Partners at 27 Wales Street, Suite 201 in Rutland offers a shared equity program with 20% down payment grants for Rutland County buyers. NorthCountry Federal Credit Union offers up to $25,000 through its Equity Builder Program for households at or below 80% AMI. Vermont Federal Credit Union offers up to $7,500 through its Seed Money program.

  5. 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.

  6. Step 6:

    Find a home within program limits. VHFA purchase price limits vary by county and are updated periodically. Check vhfa.org for current Rutland County limits.

  7. 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

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