2019 FHA Loan Limits in Vermont

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Updated on Friday, April 5, 2019

Vermont, known as the Green Mountain State, is adored for its natural landscape, its proximity to numerous hiking trails, mountains and ski slopes — and for its delicious maple syrup. It’s also relatively cheap to live here, as there are plenty of rural areas where you can get a fairly large home for less than you could in most other spots in the Northeast.

But it’s still not inexpensive. The U.S. Census Bureau found that the median home in Vermont cost $220,600 between 2013 and 2017, 20% more expensive than the median price throughout the country, and the 18th highest price in the U.S.

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If you do want to purchase a home in Vermont, however, there’s help — even if you’re not a first-time homebuyer. Federal Housing Administration (FHA) loans were created to help with down payments for those who want to buy property but need a little more help than standard loans provide. Here in Vermont, 2019 FHA loan limits range from a low of $314,827 for a one-bedroom unit in lower-cost areas like Addison County to a high of $676,750 for a four-bedroom unit in Chittenden County.

Vermont FHA Loan Limits by County

County NameOne-FamilyTwo-FamilyThree-FamilyFour-FamilyMedian Sale Price
ADDISON$314,827 $403,125 $487,250 $605,525 $213,000
BENNINGTON$314,827 $403,125 $487,250 $605,525 $184,000
CALEDONIA$314,827 $403,125 $487,250 $605,525 $116,000
CHITTENDEN$351,900 $450,500 $544,550 $676,750 $306,000
ESSEX$314,827 $403,125 $487,250 $605,525 $87,000
FRANKLIN$351,900 $450,500 $544,550 $676,750 $306,000
GRAND ISLE$351,900 $450,500 $544,550 $676,750 $306,000
LAMOILLE$314,827 $403,125 $487,250 $605,525 $210,000
ORANGE$314,827 $403,125 $487,250 $605,525 $182,000
ORLEANS$314,827 $403,125 $487,250 $605,525 $125,000
RUTLAND$314,827 $403,125 $487,250 $605,525 $134,000
WASHINGTON$314,827 $403,125 $487,250 $605,525 $178,000
WINDHAM$314,827 $403,125 $487,250 $605,525 $176,000
WINDSOR$314,827 $403,125 $487,250 $605,525 $182,000

How are FHA loan limits calculated?

There’s a simple formula to determine FHA loan limits: The agency’s “floor” (for home loans in lower-cost areas) is 65% of the conforming loan limit. The national conforming loan limit for mortgages that follow Fannie Mae and Freddie Mac guidelines increased to $484,350 for 2019, and is evaluated, and usually raised in most areas, each year. It is set at $314,827 for a one-bedroom in Vermont for 2019, as mentioned above.

There are also “ceiling” limits for FHA loans for the higher-cost areas of the U.S. These are set at $726,525 for a one-unit or $1,397,400 for a four-unit home for 2019. The ceiling limits are set at 150% of the conforming loan-limit amount.

In addition to making your FHA loan payments, you’ll be required to purchase a mortgage insurance premium. This is set at 1.75% of your loan upfront, plus an annual premium ranging from 0.45% to 10%, depending on your loan-to-value (LTV) ratio and your loan percentage (if you put down less than 10%, you’ll have to pay the insurance for the life of the loan, but if you put down at least 10%, you can drop the mortgage insurance after 11 years).

Do you qualify for an FHA loan in Vermont?

You’ll need a credit score of at least 500 and a down payment of 10%. If your credit score is higher than 580, you can put 3.5% down. You also need a debt-to-income (DTI) ratio of no more than 43%, you’ll need to prove that your income is high enough and you’ll have to live in the property as a primary residence.