VHCB's Home Ownership Programs provide purchase subsidies to make home ownership more affordable for Vermonters. VHCB funds support the purchase and development of single-family homes by individuals, affordable housing developers, Habitat for Humanity Chapters, and Vocational Education programs. Since the program's inception, VHCB funding has helped 1,680 households to become homeowners, including 125 in homes built by Habitat for Humanity Chapters around the state.
Home ownership grant funds provided by the Vermont Housing & Conservation Board subsidize the cost of purchasing a home, increasing affordability and guaranteeing permanent affordability of the home, through a model known as Shared Equity Home Ownership. Depending on income level, need, and other factors, households can receive grants of up to $50,000, or 20% of the purchase price of a home.
Under the shared equity model, the home buyer's equity upon resale is limited to 25% of appreciated value, plus the value of the principal paid down and the value of any authorized capital improvements made by the home owner. In return, the initial purchase price of the home is reduced by the amount of the grant. Subsequent purchasers are able to benefit from the limited appreciation and purchase a home for less than market value. The original grant stays with the home upon resale, recycling the subsidy to the next buyer. In addition to the grant, buyers must obtain mortgage loan financing and contribute their own cash resources (at least $1,500) towards the purchase price of the home.