2024 FHA Loan Limits in Vermont
If you’re shopping for a new home in Vermont, you may consider applying for an FHA loan. These home loans are popular with many homebuyers because lenders accept not-so-stellar credit and don’t require a high down payment. However, FHA loans come with loan limits, giving you a specific limit amount you can borrow. For a single-family home in Vermont, the FHA loan limits range from $498,257 to $517,500.
Vermont FHA loan limits by county
| County name | One unit | Two units | Three units | Four units | Median sales price |
|---|---|---|---|---|---|
| ADDISON | $498,257 | $637,950 | $771,125 | $958,350 | $295,000 |
| BENNINGTON | $498,257 | $637,950 | $771,125 | $958,350 | $275,000 |
| CALEDONIA | $498,257 | $637,950 | $771,125 | $958,350 | $175,000 |
| CHITTENDEN | $517,500 | $662,500 | $800,800 | $995,200 | $450,000 |
| ESSEX | $498,257 | $637,950 | $771,125 | $958,350 | $111,000 |
| FRANKLIN | $517,500 | $662,500 | $800,800 | $995,200 | $450,000 |
| GRAND ISLE | $517,500 | $662,500 | $800,800 | $995,200 | $450,000 |
| LAMOILLE | $498,257 | $637,950 | $771,125 | $958,350 | $280,000 |
| ORANGE | $498,257 | $637,950 | $771,125 | $958,350 | $302,000 |
| ORLEANS | $498,257 | $637,950 | $771,125 | $958,350 | $190,000 |
| RUTLAND | $498,257 | $637,950 | $771,125 | $958,350 | $200,000 |
| WASHINGTON | $498,257 | $637,950 | $771,125 | $958,350 | $268,000 |
| WINDHAM | $498,257 | $637,950 | $771,125 | $958,350 | $274,000 |
| WINDSOR | $498,257 | $637,950 | $771,125 | $958,350 | $302,000 |
How are FHA loan limits determined?
FHA loan limits are adjusted on a year-to-year basis. These limits are a percentage of the conforming loan limit amounts for conventional loans set by the Federal Housing Finance Agency (FHFA). There is a minimum limit amount (known as the “floor”) found in most counties, and a maximum limit (called the “ceiling”) offered in more expensive counties and metro areas.
The 2024 conforming loan limit is $766,550. The “floor” is 65% of $766,550 which makes the lowest FHA loan limit for most single-family homes $498,257. The “ceiling” on the other hand, is 150% of the conforming loan limit, or $1,149,825, and is the maximum loan amount FHA customers can borrow.
How to qualify for an FHA loan in Vermont
There are several main requirements needed to qualify for an FHA loan. Lenders will typically review the following:
→ Credit score and down payment. Lenders want you to have at least a 580 credit score to make a 3.5% down payment. You may be approved with a score as low as 500, but you must put 10% down.
→ Income history. FHA loans don’t require you to make a specific annual income. However, you’ll still need to provide employment and income history for the last two years.
→ Debt-to-income ratio. Your debt-to-income (DTI) ratio will be looked at by lenders to ensure you can afford to pay back the loan. This is your total monthly debt payments divided by pre-taxed monthly income.
→ Home appraisal requirement. The FHA home appraisal process also includes a home inspection, making this FHA qualification a bit more strict compared to conventional loan appraisals.
→ Mortgage insurance. You’ll need two types of FHA mortgage insurance. One type will be paid upfront and total 1.75% of the loan amount, while the other is an annual premium ranging between 0.15% and 0.75% of the loan amount and will be added to your monthly payment.
→ Primary residence. The home you’re buying must be your primary residence. It cannot be used for a vacation home or investment property.
Buying a multifamily property with an FHA loan
Vermont homebuyers can also purchase a multifamily home of two to four units with an FHA loan. Qualifications can vary with each lender, but there are certain borrower requirements most lenders look for:
- A credit score of 580 or higher for a 3.5% down payment
- Homebuyer to live in residence for at least one year
- Proof of income
- Debt-to-income ratio under 43%
| Number of units | Low-cost FHA loan limit |
|---|---|
| Two | $637,950 |
| Three | $771,125 |
| Four | $958,350 |
FHA lenders in Vermont
Lender | LendingTree rating | Min. FHA credit score | |
|---|---|---|---|
 | 580 | ||
 | Not disclosed | ||
 | 580 | ||
 | 580 | ||
 | 580 |
