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Homebuyer Programs in South Burlington, VT (2026)

Last updated April 5, 2026 | Population: 21,713 | Median home price: $485,000 | Est. closing costs: $9,500 - $14,500

Skyline of South Burlington, VT

South Burlington is a growing city in Chittenden County, Vermont, located just south of Burlington along the shores of Lake Champlain. With a median home price around $485,000, South Burlington is one of the more expensive markets in the state. While the city does not currently offer its own municipal down payment assistance program, buyers here can take advantage of several 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 receive an additional $15,000 VHFA grant. The Champlain Housing Trust offers shared equity homeownership and up to $25,000 through its Homeownership Equity Program for BIPOC buyers, and NeighborWorks of Western Vermont provides DPA loans up to $50,000. By combining these programs, South Burlington buyers could access $25,000 or more in assistance.

Top Homebuyer Programs in South Burlington

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
Champlain Housing Trust Homeownership Equity Program (HEP)
Type:
Deferred Loan
Amount:
Up to $25,000
First-time only:
Yes
Champlain Housing Trust Shared Equity Homeownership
Type:
Deferred Loan
Amount:
Below-market purchase price through shared equity model, plus down payment assistance
First-time only:
Yes
Green Mountain Habitat for Humanity Homeownership Program
Type:
Zero-Interest Loan
Amount:
Affordable home purchase with 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 Chittenden County, VHFA income limits generally range from $100,000 to $140,000 depending on program and household size.

  2. Step 2:

    Complete homebuyer education. Champlain Housing Trust at 88 King Street in Burlington is a HUD-approved counseling agency offering homebuyer education courses in English, Russian, and Spanish. Contact them at (802) 862-6244 or email info@getahome.org to register.

  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. Vermont Federal Credit Union has a location in South Burlington at 80 Midas Drive and is a VHFA participating lender.

  4. Step 4:

    Explore regional nonprofit programs. Contact Champlain Housing Trust about shared equity homeownership opportunities in South Burlington and Chittenden County. For larger down payment loans, NeighborWorks of Western Vermont offers up to $50,000 with no income cap at (802) 438-2303.

  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 for Chittenden County vary but generally range from $400,000 to $450,000 depending on property type.

  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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