Shared Equity Program Information
Addison Housing Works works to make single-family homeownership affordable in two ways: we offer "buyer-driven" down-payment grants of up to $75,000 for homes for sale on the open market, and we facilitate resales of homes already in our program for below-market purchase prices.
Funds for our shared equity down payment grant program (aka "Homeland Grant") are available on a first-come, first-served basis. AHW has a limited number of down payment grants available through our Shared Equity Program to help qualified customers purchase a single family home or condo from the open market in select towns within Addison County. Buyers who use these down payment grants will share their appreciation with future generations, helping to keep the home affordable to the next buyers.
As of 2022, the maximum grant amount is $75,000, with a maximum purchase price guideline of $300,000. Grant amounts are determined on a sliding scale based on need and affordability, and typically range from 20-25% of the purchase price.
How Do I Qualify?
If you are interested in using a grant, there are several steps that must be completed before you are considered eligible. To participate in this program, you must:
1. Complete an AHW application and be certified as income and asset-eligible*
Funds for our shared equity down payment grant program (aka "Homeland Grant") are available on a first-come, first-served basis. AHW has a limited number of down payment grants available through our Shared Equity Program to help qualified customers purchase a single family home or condo from the open market in select towns within Addison County. Buyers who use these down payment grants will share their appreciation with future generations, helping to keep the home affordable to the next buyers.
As of 2022, the maximum grant amount is $75,000, with a maximum purchase price guideline of $300,000. Grant amounts are determined on a sliding scale based on need and affordability, and typically range from 20-25% of the purchase price.
How Do I Qualify?
If you are interested in using a grant, there are several steps that must be completed before you are considered eligible. To participate in this program, you must:
1. Complete an AHW application and be certified as income and asset-eligible*
- 2024 Income limits are listed below
- You must have less than $80,000 in liquid assets (not including retirement accounts). Exceptions may be requested if you have more than the limit.
2. Complete a Home Buyer Education course through NeighborWorks of Western Vermont or Champlain Housing Trust. Home Buyer Education assesses your readiness to buy and informs you about the process of buying a home.
3. Attend at least one counseling appointment and been deemed "mortgage-ready" by your Homebuyer Education Counselor
4. Submit a copy of a current pre-approval letter from a lender (within the last 60 days)
5. Have the ability to pay closing costs, which can range from $4,000-$8,000, ($1,500 minimum of your own personal savings is required)
6. Not have an ownership interest in another primary residence at the time of purchase of shared equity home.
7. All AHW Resale buyers will be responsible for paying a $1,000 AHW transaction fee, payable at closing. The transaction fee covers a portion of the costs incurred by AHW in its facilitation of the transaction.
Only after you have completed the above steps are you eligible for a grant. If you're not sure if you've completed all of these steps, please contact us at 802-877-2626 x 116 to check.
How Much Are the Grants, and How Do They Work?
Typically, the grant amount is 20% of the purchase price up to $50,000. In 2022, the maximum grant amount was raised to $75,000 and may represent more than 20% of the purchase price, reflecting post-pandemic market conditions. The maximum purchase price is $300,000 though exceptions may be considered on a case-by-case basis.
In order to make the homes purchased through this program affordable to potential future buyers, there are restrictions placed on resale or refinancing of the home. Neither can be done without prior approval of AHW. Also, any improvements on the home involving more than $2,000 must be cleared first with AHW. Homeowners receive their investment in improvements back upon sale if they follow the procedure to obtain AHW approval ahead of time.
Buyers may own and use the home as long as they wish and transfer it to their family by will. Once a buyer qualifies for the purchase through the program, it does not matter that the buyer’s income later rises above the qualifying median income. The home is theirs. In consideration of the grant, which buyers do not have to repay, if they choose to sell the home, they will get only 25% of any appreciation in value from the date of purchase. AHW, which reserves an option to purchase the home, will find an affordable buyer, who will pay enough to cover this 25% of any appreciation plus closing costs. The new buyer gets the benefit of the grant, but a new grant is unnecessary.
Owners who purchase their home with the help of a Homeland grant pay a $25/mo. fee to AHW to support the program.
Can I Use the Grant to Purchase Any Property?
The property you purchase must meet all AHW requirements in order to receive a down payment grant:
1. The home must be a single family home or condo in one of the following towns: Vergennes, Panton, Addison, Ferrisburgh, Bristol, Lincoln, New Haven, Monkton, Middlebury and East Middlebury. Other towns may be considered on a case-by-case basis. AHW is not able to participate in the purchase of a multi-unit home, mobile home, HUD foreclosure, or senior-restricted housing.
2. The property must sell for below our maximum purchase price of $250,000. In some cases we can provide an exception up to $300,000.
3. Our funders (the Vermont Housing and Conservation Board), must approve all details of the purchase, including, but not limited to, your financing terms, your debt to income ratios, the home inspection and appraisal.
4. AHW staff must attend the home inspection and approve an independent, written inspection report from a qualified inspector acceptable to AHW, which shows no imminent major systems failures or other substantial defects.
5. AHW staff must attend a septic inspection and water quality test (if septic and water systems are private) and review written reports which show no imminent system failure or water contamination.
6. AHW must approve the future marketability of the home, including, but not limited to, location, price, size, layout, and general condition.
7. AHW must review the bank’s appraisal at least 7 days prior to closing.
Please contact our front desk at (802)877-2626 x 116 if you have questions about property requirements, or putting a home under contract.
What Are My Next Steps?
Because funds are limited, it is important that you (1) check on the availability of funds before signing a contract to buy a home and (2) include contingencies in your contract that will allow you to exit the contract and keep your deposit if AHW can't provide you with a grant.
Essential information for drawing up a contract:
1. You will be giving the seller a deposit (also called “earnest money”). DO NOT write a check directly to the seller. Ask the seller who his/her attorney is, and make the check out to that attorney’s trust account or to a realtor’s trust account.
2. Be sure to include the following contingencies:
1. The purchase is dependent upon you obtaining financing with reasonable terms.
2. The purchase is dependent upon a home inspection satisfactory to the buyer.
3. The property must appraise at or above the purchase price specified in the contract.
4. The purchase is subject to participation by Addison Housing Works.
3. Set a closing date at least six (6) weeks from the day the contract is signed.
If you have questions in this process, call AHW or your attorney.
Once you begin shopping for a home, you may need a "grant pre-approval letter" to show a seller or a lender that you qualify for grant funds, which we will be happy to provide for you.
Addison Housing Works has a limited number of down payment grants available through our Shared Equity program to help qualified customers purchase a property from the open market in Addison County. Buyers who use these down payment grants will share their appreciation with future generations, helping to keep the home affordable to the next buyers.
- NWWVT: To enroll, call (802)438-2303 x14 or go to https://www.nwwvt.org/homebuyer-education/
- Champlain Housing Trust: https://www.getahome.org/homebuyer-education/
3. Attend at least one counseling appointment and been deemed "mortgage-ready" by your Homebuyer Education Counselor
4. Submit a copy of a current pre-approval letter from a lender (within the last 60 days)
5. Have the ability to pay closing costs, which can range from $4,000-$8,000, ($1,500 minimum of your own personal savings is required)
6. Not have an ownership interest in another primary residence at the time of purchase of shared equity home.
7. All AHW Resale buyers will be responsible for paying a $1,000 AHW transaction fee, payable at closing. The transaction fee covers a portion of the costs incurred by AHW in its facilitation of the transaction.
Only after you have completed the above steps are you eligible for a grant. If you're not sure if you've completed all of these steps, please contact us at 802-877-2626 x 116 to check.
How Much Are the Grants, and How Do They Work?
Typically, the grant amount is 20% of the purchase price up to $50,000. In 2022, the maximum grant amount was raised to $75,000 and may represent more than 20% of the purchase price, reflecting post-pandemic market conditions. The maximum purchase price is $300,000 though exceptions may be considered on a case-by-case basis.
In order to make the homes purchased through this program affordable to potential future buyers, there are restrictions placed on resale or refinancing of the home. Neither can be done without prior approval of AHW. Also, any improvements on the home involving more than $2,000 must be cleared first with AHW. Homeowners receive their investment in improvements back upon sale if they follow the procedure to obtain AHW approval ahead of time.
Buyers may own and use the home as long as they wish and transfer it to their family by will. Once a buyer qualifies for the purchase through the program, it does not matter that the buyer’s income later rises above the qualifying median income. The home is theirs. In consideration of the grant, which buyers do not have to repay, if they choose to sell the home, they will get only 25% of any appreciation in value from the date of purchase. AHW, which reserves an option to purchase the home, will find an affordable buyer, who will pay enough to cover this 25% of any appreciation plus closing costs. The new buyer gets the benefit of the grant, but a new grant is unnecessary.
Owners who purchase their home with the help of a Homeland grant pay a $25/mo. fee to AHW to support the program.
Can I Use the Grant to Purchase Any Property?
The property you purchase must meet all AHW requirements in order to receive a down payment grant:
1. The home must be a single family home or condo in one of the following towns: Vergennes, Panton, Addison, Ferrisburgh, Bristol, Lincoln, New Haven, Monkton, Middlebury and East Middlebury. Other towns may be considered on a case-by-case basis. AHW is not able to participate in the purchase of a multi-unit home, mobile home, HUD foreclosure, or senior-restricted housing.
2. The property must sell for below our maximum purchase price of $250,000. In some cases we can provide an exception up to $300,000.
3. Our funders (the Vermont Housing and Conservation Board), must approve all details of the purchase, including, but not limited to, your financing terms, your debt to income ratios, the home inspection and appraisal.
4. AHW staff must attend the home inspection and approve an independent, written inspection report from a qualified inspector acceptable to AHW, which shows no imminent major systems failures or other substantial defects.
5. AHW staff must attend a septic inspection and water quality test (if septic and water systems are private) and review written reports which show no imminent system failure or water contamination.
6. AHW must approve the future marketability of the home, including, but not limited to, location, price, size, layout, and general condition.
7. AHW must review the bank’s appraisal at least 7 days prior to closing.
Please contact our front desk at (802)877-2626 x 116 if you have questions about property requirements, or putting a home under contract.
What Are My Next Steps?
Because funds are limited, it is important that you (1) check on the availability of funds before signing a contract to buy a home and (2) include contingencies in your contract that will allow you to exit the contract and keep your deposit if AHW can't provide you with a grant.
Essential information for drawing up a contract:
1. You will be giving the seller a deposit (also called “earnest money”). DO NOT write a check directly to the seller. Ask the seller who his/her attorney is, and make the check out to that attorney’s trust account or to a realtor’s trust account.
2. Be sure to include the following contingencies:
1. The purchase is dependent upon you obtaining financing with reasonable terms.
2. The purchase is dependent upon a home inspection satisfactory to the buyer.
3. The property must appraise at or above the purchase price specified in the contract.
4. The purchase is subject to participation by Addison Housing Works.
3. Set a closing date at least six (6) weeks from the day the contract is signed.
If you have questions in this process, call AHW or your attorney.
Once you begin shopping for a home, you may need a "grant pre-approval letter" to show a seller or a lender that you qualify for grant funds, which we will be happy to provide for you.
Addison Housing Works has a limited number of down payment grants available through our Shared Equity program to help qualified customers purchase a property from the open market in Addison County. Buyers who use these down payment grants will share their appreciation with future generations, helping to keep the home affordable to the next buyers.