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For Vermont homeowners facing financial uncertainty, the search for a mortgage relief program can be a source of significant stress. If you are struggling to make your mortgage payments, it is crucial to know that help is available.
While the primary pandemic-era assistance program has concluded, a robust network of support and financial resources remains available across the state. Navigating these options is the first step toward securing your home and regaining financial stability.
A clear path forward exists. This resource is designed to be your roadmap, guiding you through the immediate actions to take and the long-term solutions available to protect your home.
Understanding the Closed Vermont Homeowner Assistance Program (VHAP)
The Vermont Homeowner Assistance Program (VHAP), a key resource during the pandemic, is now closed to new applications. It's important for homeowners to understand what this program was and why it has ended. This clarifies the current landscape of available assistance.
Administered by the Vermont Housing Finance Agency (VHFA), VHAP was a temporary emergency program funded by the federal American Rescue Plan Act. It was created to help homeowners who experienced financial hardship due to the COVID-19 pandemic, providing grants for overdue mortgage payments, property taxes, and utility bills.
Having successfully distributed its funds, VHAP is no longer an option. However, the conclusion of this program does not mean that help is unavailable. It was one part of a much broader and ongoing support system for homeowners in the state.
When facing difficulty with mortgage payments, taking immediate, strategic action is the key to preserving your homeownership. The following steps provide a clear, urgent plan to take control of the situation and access the expert help available to you.
Step One: Contact Your Mortgage Servicer Immediately
The single most important first step is to communicate with your mortgage servicer, which is the company you send your monthly payments to. Ignoring letters or calls will severely limit your options.
Proactive communication shows your commitment to finding a solution. Mortgage servicers are typically motivated to work with homeowners to avoid the costly and complex process of foreclosure.
Step Two: Engage a Free, HUD-Approved Housing Counselor
After contacting your servicer, your next call should be to a HUD-approved housing counseling agency. This is arguably the most critical step in navigating the complex landscape of homeowner assistance. These non-profit agencies are staffed by certified professionals who provide free, expert, and unbiased guidance to homeowners in distress.
A housing counselor acts as your personal navigator and advocate. The support system in Vermont is a network of different agencies—legal, financial, and governmental—and a counselor is the expert who can assess your unique situation and connect you to the right resources at the right time. They serve as a central point of contact, helping you understand all your options and develop a comprehensive plan to save your home.
A HUD-approved housing counselor can provide a range of essential services, including:
The following table lists the HUD-approved housing counseling agencies serving Vermont homeowners. Contacting the agency that serves your county is a free and powerful step toward resolving your mortgage challenges.
| Agency Name | Counties/Region Served | Phone Number | Website |
|---|---|---|---|
| Bennington-Rutland Opportunity Council, Inc. (BROC) | Bennington, Rutland | (802) 665-1704 | www.broc.org |
| Champlain Housing Trust | Chittenden, Franklin, Grand Isle | (802) 861-7394 | www.getahome.org |
| Downstreet Housing & Community Development, Inc. | Washington, Orange, Lamoille | (802) 477-1331 | www.downstreet.org |
| NeighborWorks of Western Vermont | Addison, Bennington, Rutland | (802) 438-2303 | www.nwwvt.org |
| Opportunities Credit Union | Statewide | (802) 495-5456 | www.oppsvt.org |
| RuralEdge | Caledonia, Essex, Orleans | (802) 535-3555 | www.ruraledge.org |
| Windham & Windsor Housing Trust | Windham, Windsor | (802) 254-4604 | www.homemattershere.org |
Beyond housing counseling, Vermont has specialized organizations dedicated to providing direct legal and financial intervention for homeowners at risk of losing their homes.
Vermont Legal Aid: Your Advocate in a Legal Crisis
If your situation has become a legal matter—for instance, if you have received a foreclosure summons from the court—it is imperative to seek legal assistance immediately. Vermont Legal Aid, through its Consumer and Homeowner Rights Project (CHRP), provides free legal services to income-qualified Vermont homeowners facing financial hardship.
CHRP attorneys are experts in homeowner rights and can provide critical assistance in situations such as:
Vermont Legal Aid also advocates for systemic changes to protect homeowners, such as their work on Act 106, a law that added significant protections to the property tax collection process to prevent unnecessary home loss.
To see if you qualify for free legal help, call Vermont Legal Aid at 1-800-889-2047 or visit(https://vtlawhelp.org/).
The NeighborWorks Alliance of Vermont: Local Homeownership Centers
The NeighborWorks Alliance of Vermont is a statewide network of the five non-profit housing organizations listed in the table above (Downstreet, Champlain Housing Trust, NeighborWorks of Western Vermont, RuralEdge, and Windham & Windsor Housing Trust). These local homeownership centers are on the front lines of foreclosure prevention, offering a suite of free services designed to promote sustainable homeownership.
Their core services for homeowners in distress include:
While direct mortgage grants from VHAP have ended, other programs can improve your financial stability. True mortgage relief often comes from addressing other major household expenses. This frees up critical funds to keep your mortgage current.
A major, unexpected home repair can easily derail a tight budget and lead to missed payments. Several state and federal programs are designed to prevent that from happening by offering targeted financial assistance.
Federal Support for Rural Homeowners: The USDA Section 504 Home Repair Program
For homeowners in rural communities, the U.S. Department of Agriculture (USDA) Rural Development's Section 504 Home Repair program is a vital resource. It provides loans and grants to help very-low-income homeowners repair, improve, or modernize their homes, or to remove health and safety hazards.
Applications are accepted year-round through local USDA Rural Development offices. For more information, contact the Vermont office at (603) 223-6035 or Housingvt.nh@usda.gov.
Lowering Household Costs: Weatherization and Energy Efficiency Programs
Reducing recurring monthly expenses like heating and electricity is a powerful strategy for freeing up cash for your mortgage payment. Vermont offers several programs to help homeowners make energy efficiency improvements at little to no upfront cost.
Other Targeted Financial Aid for Home Repairs and Safety
Several other state and local programs offer financial help for specific, critical home repairs that can prevent a financial emergency.
Facing mortgage difficulties can feel overwhelming, but it is a challenge that can be overcome with the right strategy and support. The resources available to Vermont homeowners are substantial, but they are most effective when accessed promptly and with expert guidance.
Remember these key principles:
By taking these steps—contacting your servicer, engaging a housing counselor, and exploring the available financial and legal resources—you can build a clear and effective plan to address your mortgage challenges and secure a stable financial future in your home.
Funding and application status for the Vermont Mortgage Relief Program are subject to change. Homeowners should always consult the official Vermont Housing Finance Agency (VHFA) website for the most current information regarding program availability, deadlines, and whether new applications are being accepted for homeowner assistance.
The program’s main objective is foreclosure prevention for Vermont homeowners who have experienced a pandemic-related financial hardship. By providing funds for delinquent mortgage payments and other housing costs, it helps residents remain in their homes and avoid displacement, supporting overall housing stability in the state.
No, assistance provided through the Vermont Mortgage Relief Program is a grant, not a loan, and does not need to be repaid. These funds are paid directly to your mortgage servicer, taxing authority, or other relevant provider to help you cure delinquencies and stabilize your housing situation.
The Vermont Mortgage Relief Program can cover more than just principal and interest. Eligible expenses often include overdue property taxes, homeowner’s insurance, condominium or homeowners’ association fees, and even delinquent utility bills. This comprehensive approach helps address various threats to your housing stability.
Yes, homeowners at risk of a tax sale due to overdue property taxes may be eligible for aid. The Vermont Mortgage Relief Program can provide funds to pay off these delinquencies, even if your mortgage is current, helping you avoid foreclosure proceedings initiated by your municipality.
Eligibility often focuses on homeowners who are already delinquent. However, some provisions may assist those facing imminent default. It is crucial to contact a HUD-approved housing counselor in Vermont to discuss your specific situation and see if the homeowner assistance program can provide proactive support.
Applicants typically need to provide proof of income (like pay stubs or tax returns), a government-issued ID, their mortgage statement, and documentation of their COVID-19-related financial hardship. Having these documents prepared can significantly speed up your application process for the Vermont Mortgage Relief Program.
Income eligibility is generally based on your household’s current income relative to the Area Median Income (AMI) for your county. The Vermont Homeowner Assistance Program prioritizes low- and moderate-income households, typically those earning at or below 100% of the AMI, to ensure aid reaches those most in need.
Processing times can vary based on application volume and complexity. After submitting all required documentation for the Vermont Mortgage Relief Program, a decision may take several weeks. You can typically track your application status through the official VHFA online portal for the most accurate timeline.
If you are deemed ineligible, you should immediately contact a free, HUD-approved housing counseling agency in Vermont. These nonprofit counselors can assess your situation, explore loan modification options with your servicer, discuss bankruptcy alternatives, and identify any other available local or federal resources for foreclosure prevention.
Vermont’s rental relief programs are designed to provide a critical lifeline for residents struggling to maintain stable housing. By offering assistance with rent, utility payments, and other housing costs, these programs help Vermonters avoid homelessness and rebuild financial security.
In an increasingly digital world, access to an iPad can be a game-changer for low-income families, providing essential tools for education, job searching, and staying connected. We’ll explore the various government and non-profit programs that offer free or deeply discounted iPads to eligible households, helping to bridge the technology gap and unlock new opportunities.
In a time of skyrocketing rents and housing instability, a surprising source of support is emerging for those struggling to secure a home: churches. Discover how these faith communities are stepping up to offer vital financial assistance, often in partnership with broader community initiatives, to help individuals and families overcome the hurdle of the security deposit.