At Flex Realty, we work with first-time homebuyers across Vermont every day. Whether you're eyeing Burlington’s buzz or Barre’s value, this guide will walk you through the essentials.
Buying your first home is a major milestone, and if you're doing it in Vermont, you're in for something special. With its charming small towns, strong sense of community, and breathtaking natural beauty, Vermont offers a lifestyle that’s hard to beat. But like anywhere else, buying a home here comes with its own set of local quirks, costs, and considerations.
At Flex Realty, we work with first-time homebuyers across Vermont every day. Whether you're eyeing Burlington’s buzz or Barre’s value, this guide will walk you through the essentials, providing programs that can help, the towns to consider, costs to expect, and how Vermont’s unique seasons can impact your buying experience.
Vermont-Specific First-Time Homebuyer Programs
Good news—Vermont has several resources designed to help first-time buyers get into a home sooner and with less financial stress.
Vermont Housing Finance Agency (VHFA)
VHFA offers income-based loan programs that include down payment assistance, below-market interest rates, and mortgage credit certificates (MCCs) that give you tax breaks. Programs like MOVE and Advantage are great for buyers who qualify.
ASSIST Down Payment Assistance
If the down payment is your biggest hurdle, VHFA’s ASSIST program offers up to $15,000 as a zero-interest, deferred loan. That means you don’t pay it back until you sell or refinance.
USDA Rural Development Loans
Many parts of Vermont qualify as “rural” under the USDA’s definition. These loans offer zero down payment options and favorable terms for income-eligible buyers. Even towns near population hubs (like parts of Williston or Richmond) may qualify.
Other Programs to Ask About
- FHA and VA loans (national, but widely used in VT)
- Local credit union first-time buyer programs
Pro Tip: Reach out to a local lender or Flex Realty agent early in your search. They’ll help you explore which programs match your situation.
Where to Buy? A Town-by-Town Snapshot
Vermont may be small, but its housing market is far from one-size-fits-all. Here's what you can expect in a few popular areas:
Burlington & South Burlington
These are the most competitive—and expensive—markets in the state, with median home prices often exceeding $500,000. That said, they offer unbeatable walkability, strong public schools, and proximity to Lake Champlain and major employers like UVM Medical Center.
Essex, Williston, Colchester
Great options for young families and professionals. You'll find more spacious homes, newer developments, and good access to Burlington via I-89. Prices here tend to be more reasonable than downtown Burlington.
Montpelier, Barre, and Central Vermont
More budget-friendly with charming downtowns, great farmer’s markets, and lower property taxes. Barre especially offers solid starter homes under $300k.
Southern & Rural Vermont (St. Johnsbury, Randolph, Brattleboro)
Expect lower prices and more space, but also fewer listings. Keep in mind that rural areas may have longer commutes, limited broadband, and added costs for snow removal or well/septic maintenance.
Local Insight: Two homes priced the same can offer very different lifestyles depending on the town. A Barre home might come with more land and lower taxes, while a Williston home offers quicker access to schools and shopping.
What Will It Cost?
Buying a home in Vermont can be surprisingly affordable compared to national averages, but it’s essential to plan beyond the listing price. Here’s what first-time buyers typically budget for:
- Median home price statewide: ~$350,000–$400,000
- Down payment: 3%–5% with FHA or VHFA loans; 20% to avoid mortgage insurance
- Closing costs: 2%–5% of the purchase price (includes taxes, legal fees, inspections)
- Home inspection: $400–$600
- Appraisal: $400–$500
- Property taxes: Vary by town (e.g., Burlington is higher than Barre or Milton)
For example, a $375,000 home in Colchester might cost $18,000 in total up-front expenses (down payment + closing), while a similar home in Barre might cost closer to $12,000 due to lower taxes and fees.
Weather & Seasonal Considerations
Vermont’s four-season climate adds some extra variables when timing your home purchase:
Winter Buying (Dec–Feb):
- Pros: Less competition, motivated sellers, quicker closings
- Cons: Snow can hide roof issues, frozen ground makes septic inspections tough
Spring & Summer (Mar–Aug):
- Pros: More listings, easier inspections, and moving is easier
- Cons: Higher competition, bidding wars in some towns
Fall (Sept–Nov):
- A sweet spot—inventory is still solid, and you may find sellers eager to close before winter.
Climate Questions to Ask:
- What’s the home’s heating system (oil, propane, heat pump)?
- How well is the home insulated?
- Who plows the driveway in winter—and is it included?
🔍 Home Feature Tip: Look for Energy Star-rated windows and good attic insulation. These make a huge difference come February.
How Flex Realty Helps First-Time Buyers
Buying your first home can feel overwhelming, but we’re here to guide you every step of the way.
What You Get with Flex:
- Local market insights tailored to your goals and budget
- Tour scheduling and offer support—fast and responsive
- Connections to trusted lenders, inspectors, and attorneys
- Low-commission value: We help you save from the start, with more money left in your pocket for furniture, renovations, or simply breathing room.
Vermont Might Be the Perfect Place to Start Your Story
Buying your first home in Vermont means more than just a transaction—it’s an entry into a lifestyle rich with community, nature, and opportunity. From low-commission savings to trusted local guidance, Flex Realty is ready to help you make the leap with confidence.