Home financing in Chittenden County.

Home financing means borrowing money to purchase, renovate, or invest in residential real estate. In Chittenden County — home to Burlington, South Burlington, Williston, Essex, Shelburne, Winooski, and several smaller towns — the housing market is competitive and prices have risen significantly over the past decade. Understanding your financing options before you start shopping gives you a real advantage.

The most common financing tools include:

• **Conventional mortgages** — Loans from banks, credit unions, or mortgage companies, typically requiring good credit and a down payment of 3–20%.

• **FHA loans** — Government-backed loans with lower down payment requirements (as low as 3.5%), useful for first-time buyers or those rebuilding credit.

• **USDA rural loans** — Available in some of the more rural parts of Chittenden County (check eligibility by address at the USDA website).

• **Vermont Housing Finance Agency (VHFA) loans** — A state-level program that pairs below-market interest rates with down payment assistance. This is often the most practical starting point for Chittenden County buyers.

• **ITIN loans** — Offered by select local lenders for buyers who do not have a Social Security Number but do have an Individual Taxpayer Identification Number.

• **CDFI loans** — Community Development Financial Institutions fill gaps that traditional banks won't, including loans for people with thin credit files or non-traditional income.

Chittenden County's median home price routinely exceeds $400,000, so knowing which programs stack together — for example, a VHFA loan paired with a down payment grant — can make the difference between renting and owning.

Chittenden County's workforce is diverse. It includes healthcare workers at UVM Medical Center, tradespeople and solo contractors in construction, University of Vermont employees and students, immigrant and refugee families resettled through local agencies, hospitality and retail workers, and small-scale real estate investors. Most of these groups can access at least one financing pathway.

**For W-2 employees:** Standard income verification is straightforward. Most lenders want 2 years of employment history, though exceptions exist for recent graduates in stable professions.

**For self-employed and solo contractors:** You will typically need 2 years of self-employment documented on federal tax returns, including Schedule C.

Lenders look at net income after deductions — so if you write off significant business expenses, your qualifying income may be lower than expected.

A local lender familiar with Vermont's trades economy can often work more flexibly with this.

**For ITIN holders:** Several lenders in Chittenden County accept an Individual Taxpayer Identification Number in place of a Social Security Number.

You will generally need 2 years of ITIN-filed tax returns, a solid rental payment history, and some savings.

Vermont's immigrant communities — particularly in Burlington and Winooski — have accessed homeownership through this pathway.

**For first-time buyers:** Vermont defines a first-time buyer as someone who has not owned a primary home in the past 3 years. This opens access to VHFA programs and local down payment assistance.

**For small real estate investors:** If you are purchasing a 2–4 unit property and plan to live in one unit, you may qualify for owner-occupied financing rates, which are considerably lower than pure investment property rates. Chittenden County's multi-family stock — particularly in Burlington's Old North End and Winooski — is often purchased this way.

Gathering documents ahead of time makes the process much less stressful. While every lender varies slightly, most will ask for the following:

**Identity and residency:**

- Government-issued photo ID (passport, state ID, or driver's license)

- For ITIN borrowers: ITIN letter from the IRS and passport or consular ID

- Proof of address (recent utility bill or lease agreement)

**Income:**

- Last 2 years of federal tax returns (all pages, all schedules)

- Last 2 years of W-2s or 1099s

- Last 2–3 months of pay stubs (if employed)

- For self-employed: profit and loss statements, business bank statements

- Social Security award letters or pension statements if applicable

**Assets:**

- Last 2–3 months of bank statements (all accounts, all pages)

- Documentation of any gift funds (a signed gift letter from the donor)

- Retirement account statements if using as reserves

**Credit and debt:**

- You do not need to pull your own credit — lenders do this with your permission

- A list of current monthly obligations (car payments, student loans, etc.) is helpful to have ready

**Property (once you have an offer accepted):**

- Signed purchase and sale agreement

- Homeowners insurance quote

- For multi-family properties: existing leases and rent rolls

If you have gaps — for example, no credit score, or cash income not fully reflected on tax returns — speak honestly with a CDFI or a HUD-approved housing counselor before applying. They can help you build the file rather than reject it.