Vermont · State guide
How to buy a house in Vermont
A pricey, tight, high-tax state that offers some of the strongest first-time buyer help in the country — set against one growing risk: flooding. Here is the playbook for buying in the Green Mountain State.
Last updated June 2026
Why Vermont is different
Buying a house in Vermont, the short version
The federal process is the same everywhere — read the complete guide to buying a house for the eight universal steps — but Vermont has its own programs, taxes, and closing rules worth knowing before you start.
The picture: Vermont is expensive with very low inventory (a statewide median around $442,000; Burlington is the tightest and priciest market, and ski towns like Stowe run over $1M). The state agency, VHFA, offers below-market loans plus down payment help that can stack to $25,000 — and Vermont’s community land trusts are a model for the nation.
Two things to plan for: property taxes are high (and you must file a Homestead Declaration every year), and closings are done by an attorney. The catch that’s growing: flooding — after Irene and the 2023 and 2024 floods, flood insurance matters more than ever. Use the 50-state hub to compare other states.
The market
What homes cost in Vermont
Expensive and chronically short on supply.
The statewide median sale price was about $442,000 in spring 2026 (Redfin), up around 2% year over year, with inventory loosening a bit (~5 months of supply) but still tight — Vermont’s core problem is a persistent housing shortage. Prices vary widely by area:
Median prices by area
Stowe (Lamoille, ski/resort) single-family often over $1M · Burlington ~$540K · Chittenden County (largest, tightest) ~$513K · Windham (Brattleboro) ~$357K · Rutland County (more affordable) ~$265K–$340K · Northeast Kingdom (Caledonia, Essex, Orleans), the most affordable and rural region.
Down payment & rate help
VHFA programs
You don’t apply directly — you work through a participating lender. A 640 credit score and a homebuyer course are the main requirements.
-
01
MOVE + $10,000 ASSIST
The core: the MOVE 30-year fixed mortgage (FHA, VA, USDA, or conventional) at below-market rates, paired with ASSIST — up to $10,000 for your down payment and closing costs as a 0% second loan with no monthly payment, repaid only when you sell or refinance. There’s also a MOVE MCC version that adds a federal tax credit.
-
02
$15,000 First-Generation grant
If your parents never owned a home (or lost one to foreclosure), the First-Generation Homebuyer program adds a $15,000 grant you never repay — and it stacks with ASSIST for up to $25,000 total toward your purchase. A great fit for buyers without family wealth to draw on.
-
03
Community land trusts (a Vermont original)
Vermont pioneered shared-equity homeownership. Through the Champlain Housing Trust and others, you buy the home but lease the land — so you need no down payment and a smaller mortgage. The trade-off: when you sell, you keep your equity plus 25% of the appreciation, keeping the home affordable for the next buyer.
-
04
More help & federal loans
NeighborWorks of Western Vermont offers a larger second mortgage (up to $50,000) for buyers who need more than ASSIST. Plus the federal loans — USDA (0% down — much of rural Vermont qualifies), VA (0% down), and FHA (3.5% down).
The VHFA rules in brief
You’ll generally need a 640 credit score, completion of a homebuyer education course (through NeighborWorks or CVOEO), and household income and price under limits. Income caps run about $110,000–$125,000 for 1–2 people depending on county (higher for the Advantage program), with a purchase price cap of $450,000 (or $550,000 on Advantage). ASSIST and the First-Generation grant have a $20,000 liquid-asset cap and are funded first-come each year, so apply early.
★ Free expert help
Buying in Vermont? Get matched with a local expert.
From stacking VHFA’s ASSIST and First-Generation help to understanding flood risk and getting an NFIP quote, a local pro can walk you through it — and answer the questions this page can’t. Free, with no obligation.
Property taxes
Property taxes in Vermont: high
Vermont has high property taxes — an effective rate around 1.5%, among the highest in the country, with a typical bill near $5,000. The reason is that Vermont funds its schools through a statewide education property tax, which makes up most of your bill. There are two rates: a lower homestead rate for your primary home, and a higher nonhomestead rate for second homes and rentals. Vermont also has an income-based credit that lowers the bill for many residents.
You must file a Homestead Declaration every year
This is critical and unique to Vermont: to get the lower homestead tax rate on your primary home, you must file a Homestead Declaration (Form HS-122) every year by April 15 — miss it and you’re taxed at the higher nonhomestead rate, plus a penalty. On the same form, if your household income is under about $115,400, you can claim the Property Tax Credit, which reduces your bill based on income. Note that buying after April 1 usually means you won’t get the homestead rate until the next year. And on the transfer tax, in Vermont it’s the buyer who pays.
Closing & costs
Closing on a home in Vermont
Vermont is an attorney-closing state — a licensed attorney handles the title search, closing, and deed (they can also issue your title insurance). Expect a flat fee of roughly $750–$1,250. The Property Transfer Tax, which the buyer pays, is tiered: for a primary home it’s 0.5% on the first $200,000 and about 1.47% above that (a second home is taxed much higher, ~3.6%). Using a VHFA or USDA loan exempts the first $250,000. On financing, the 2026 conforming limit is $832,750 and the FHA floor is $541,287, rising to $575,000 in the Burlington area.
No standard disclosure form — but strict lead rules
Unlike most states, Vermont has no mandatory seller disclosure form, though sellers usually provide a property report and can’t commit fraud — so a thorough home inspection is especially important here. Two things to know: the federal lead-paint disclosure applies to pre-1978 homes, and Vermont has strict lead rules — if you’re buying a pre-1978 rental, confirm it’s current on the state’s required lead maintenance (EMP) compliance before closing.
Insurance & risks
Insuring a Vermont home
Vermont home insurance is among the cheapest in the country — averaging around $1,050–$1,250 a year — thanks to low catastrophe risk. But there’s one big and growing exception: flooding. Tropical Storm Irene (2011) was catastrophic, and the July 2023 and July 2024 floods devastated central Vermont — including the capital, Montpelier, and Barre — causing an estimated $1.6 billion in losses. Add harsh winters (heavy snow, ice dams) and the occasional wind or ice storm.
Flood is the key risk — and it’s not in a standard policy
This is the most important thing to understand in Vermont: a standard policy excludes flood, so you need a separate NFIP or private flood policy. Yet only about 1% of Vermont properties carry it — a huge gap, especially since 1 in 3 flood claims here come from outside the high-risk zones. If you’re buying anywhere near a river valley (the Winooski, Lamoille, and others) or in central Vermont, get a flood quote before you make an offer, and check the state’s Flood Ready Atlas. Vermont has no FAIR Plan, but the regular market still works. For older homes, ask about water-backup and ordinance-or-law coverage too.
Wherever you buy
The steps that work the same in Vermont
Vermont sets the local rules, but these parts of buying are the same everywhere.
Quick answers
Buying a house in Vermont: common questions
How much money do you need to buy a house in Vermont?
With a conventional loan you need 3% down, FHA 3.5%, and VA or USDA can be 0%. On a typical ~$442,000 home that’s roughly $13,300–$15,500 down plus closing costs. VHFA’s help — up to $25,000 combined — can cover much of it, and land trusts need no down payment. See how much you really need →
Does Vermont have down payment assistance?
Yes. VHFA’s ASSIST gives up to $10,000 (0%, repaid at sale), and the First-Generation grant adds $15,000 you never repay — stacking to $25,000. NeighborWorks offers a larger second mortgage, and Champlain Housing Trust homes need no down payment. See assistance programs →
Why are Vermont property taxes so high?
Because Vermont funds its schools mainly through a statewide education property tax, which makes up most of your bill. The effective rate is around 1.5%, among the highest in the country — though an income-based credit lowers it for many residents.
What is the Homestead Declaration?
It’s a form (HS-122) you must file every year by April 15 to get the lower homestead tax rate on your primary home. Miss it and you’re taxed at the higher nonhomestead rate plus a penalty. You claim the income-based Property Tax Credit on the same form.
What credit score do you need in Vermont?
VHFA generally requires a 640. For loans broadly, FHA can go to 580 and USDA/VA typically want 620. A higher score mainly earns a lower rate. Check the score by loan type →
Do I need an attorney to buy a house in Vermont?
Yes — Vermont is an attorney-closing state. A licensed attorney handles the title search, closing, and deed, and can issue your title insurance. Expect a flat fee of about $750–$1,250. Title companies don’t run closings here the way they do in many states.
Who pays the transfer tax in Vermont?
The buyer pays Vermont’s Property Transfer Tax. For a primary home it’s 0.5% on the first $200,000 and about 1.47% above that; a VHFA or USDA loan exempts the first $250,000. Second homes are taxed much higher, around 3.6%.
Do I need flood insurance in Vermont?
Often yes, and it’s worth strongly considering even outside mapped flood zones. Standard policies exclude flood, so you’d add an NFIP or private policy. After the 2023 and 2024 floods, it’s Vermont’s biggest risk — and 1 in 3 claims come from outside high-risk areas.
What’s the conforming loan limit in Vermont?
$832,750 in every county for 2026, with the FHA floor at $541,287 in most of the state. The Burlington area (Chittenden, Franklin, Grand Isle) is higher at $575,000. Loans above the conforming limit are jumbo.
★ Ready for the next step?
Don’t navigate the Vermont market alone.
Tell us where you are in the process and we’ll connect you with an expert who can help — whether that’s a VHFA loan, the First-Generation grant, a community land trust home, or a USDA 0%-down approval. It’s free, with no obligation.
Compare states
Buying in a different state?
The programs, taxes, and closing rules change at the state line. Pick another state, or see all 50.