Vermont FHA Loan Requirements 2026
2026 FHA loan limits for all 14 Vermont counties, including the higher Chittenden, Franklin and Grand Isle limits, HUD’s credit and minimum investment rules, how FHA mortgage insurance works, and how FHA pairs with VHFA.
Vermont FHA Loan Limits by County (2026)
FHA sets its limits by county and by the number of units in the property. In Vermont, 11 of 14 counties sit at the CY2026 national floor, including the Barre and Rutland areas, and the three counties of the Burlington-South Burlington metro area are set higher.
| County | One Unit | Two Units | Three Units | Four Units |
|---|---|---|---|---|
| Chittenden, Franklin and Grand Isle (Burlington-South Burlington area) | $575,000 | $736,100 | $889,800 | $1,105,800 |
| 11 other counties (national floor) | $541,287 | $693,050 | $837,700 | $1,041,125 |
The 11 floor counties are Addison, Bennington, Caledonia, Essex, Lamoille, Orange, Orleans, Rutland, Washington, Windham and Windsor. Confirm any county before relying on it at the HUD FHA Mortgage Limits lookup, selecting Limit Type “FHA Forward” and Limit Year CY2026.
Vermont FHA Loan Requirements
FHA rules are federal, so they do not change between Vermont and any other state. What changes is the loan limit and the price of the homes you are applying them to.
| Requirement | Standard | Notes |
|---|---|---|
| Minimum required investment | 3.5% of the adjusted value | Required for FHA to insure the maximum mortgage amount |
| Credit score 580 or above | Eligible for maximum financing | Lenders may apply a higher overlay |
| Credit score 500–579 | Maximum 90% loan-to-value | Effectively 10% down |
| Credit score below 500 | Not eligible | HUD minimum decision credit score |
| Mortgage insurance | Required | Both upfront and annual — see below |
| Loan limit | $541,287 for one unit in 11 counties | $575,000 in Chittenden, Franklin and Grand Isle |
Sources: HUD on the minimum required investment and on minimum decision credit scores.
FHA Mortgage Insurance Premiums (MIP)
Every FHA loan carries two mortgage insurance charges: a one-time upfront premium and an annual premium paid monthly. These are national figures set by HUD, not Vermont figures.
| Premium | Rate | How It Is Paid |
|---|---|---|
| Upfront (UFMIP) | 1.75% of the base loan amount | One-time premium |
| Annual, base loan up to $726,200, LTV above 95% | 55 basis points | Monthly, for the life of the loan |
| Annual, base loan up to $726,200, LTV above 90% up to 95% | 50 basis points | Monthly, for the life of the loan |
| Annual, base loan up to $726,200, LTV 90% or below | 50 basis points | Monthly, for 11 years |
| Annual, base loan above $726,200, LTV above 95% | 75 basis points | Monthly, for the life of the loan |
| Annual, base loan above $726,200, LTV above 90% up to 95% | 70 basis points | Monthly, for the life of the loan |
| Annual, base loan above $726,200, LTV 90% or below | 70 basis points | Monthly, for 11 years |
These rates apply to loans with a term longer than 15 years. Vermont’s one-unit FHA limits are below $726,200 in every county; two-unit limits exceed it in Chittenden, Franklin and Grand Isle, and three- and four-unit limits exceed it everywhere. Source: HUD Mortgagee Letter 2023-05.
FHA vs. Conventional in Vermont
With Vermont’s conforming limit at $832,750 in all 14 counties, conventional financing reaches higher than FHA’s one-unit limit everywhere in the state.
| Factor | FHA | Conventional |
|---|---|---|
| Minimum down payment | 3.5% | 3%–20% (practical range) |
| Practical credit threshold | 580 | 620 |
| Mortgage insurance | Upfront plus annual; annual for the life of the loan above 90% LTV | Private mortgage insurance, which can be removed as equity builds |
| 2026 Vermont limit | $541,287 or $575,000 by county | $832,750 in all counties |
| Best suited to | Thinner credit, limited savings | Stronger credit, or avoiding permanent mortgage insurance |
See our guide on how to remove PMI for how private mortgage insurance ends on a conventional loan.
Combining FHA with VHFA
An FHA loan and the Vermont Housing Finance Agency’s programs are not alternatives. All VHFA homebuyer programs are paired with eligible 30-year fixed rate mortgages, and FHA is one of the eligible mortgage types.
| VHFA Program | Works With FHA | What It Adds |
|---|---|---|
| MOVE and MOVE MCC | Yes — FHA is an eligible mortgage | Often VHFA’s lowest interest rate; the MCC adds a federal tax credit up to $2,000 a year |
| ADVANTAGE | Yes — FHA is an eligible mortgage | VHFA’s highest income and purchase price limits |
| ASSIST | Available exclusively with VHFA MOVE | Up to $10,000, 0% deferred, for buyers who have never owned a home |
Pairing FHA with VHFA means meeting both sets of rules: FHA’s minimum investment and credit thresholds, and VHFA’s 640–680 credit minimum, income and purchase price limits, and first-time homebuyer requirements where they apply. Check current terms in the VHFA homebuyer FAQ.
