FHA Loans in Vermont
The FHA loan limit in Vermont is $472,030 for a single-family home. FHA loans require just 3.5% down payment and accept credit scores as low as 580.
Vermont's FHA limits at the baseline cover most of the state's housing market, though rising prices in Chittenden County (Burlington) and some resort communities have begun to push homes above the limit. FHA is practical throughout most of Vermont, particularly in the state's smaller cities and rural areas where prices remain moderate. Vermont's older housing stock presents challenges for FHA appraisals — many homes predate 1950 and may have issues with lead paint, outdated wiring, and aging foundations that require attention before FHA financing can close.
By BuyAHomeIn Editorial | Updated 2026-03-02 | Sources: HUD, Zillow
FHA Loan Limit
$472,030
Min Down Payment
$16,521
3.5%
Est. Monthly Payment
$3,765
PITI + MIP
Min Credit Score
580
for 3.5% down
Monthly Payment Breakdown at FHA Limit
| Home Price | $472,030 |
| Down Payment (3.5%) | $16,521 |
| Loan Amount | $455,509 |
| Monthly Costs | |
| Principal & Interest (6.5%) | $2,879 |
| FHA Mortgage Insurance (MIP) | $209 |
| Property Tax | $559 |
| Homeowners Insurance | $118 |
| Total Monthly Payment | $3,765 |
* Estimated at 6.5% interest rate, 30-year fixed. MIP at 0.55% annual. Property tax at Vermont's average rate of 1.42%. Includes upfront MIP of 1.75% rolled into loan.
FHA Loan Requirements
Credit Score
580+ for 3.5% down payment. 500-579 requires 10% down.
Down Payment
Minimum 3.5% of purchase price. Can be a gift from family.
Debt-to-Income
Maximum 43% DTI ratio (up to 50% with compensating factors).
Property Requirements
Must be primary residence. FHA appraisal required (stricter than conventional).
Employment
2 years of steady employment history. Self-employed need 2 years of tax returns.
Mortgage Insurance
1.75% upfront MIP + 0.55% annual MIP. Required for life of loan (unless refinanced).
FHA vs Conventional in Vermont
| Feature | FHA | Conventional |
|---|---|---|
| Min Down Payment | 3.5% | 3-5% |
| Min Credit Score | 580 | 620 |
| Mortgage Insurance | Life of loan | Until 20% equity |
| Loan Limit (Vermont) | $472,030 | $766,550+ |
| Best For | Lower credit, small savings | Good credit, 20%+ down |
