2026 FHA Loan Limits in Vermont
FHA loans, backed by the Federal Housing Administration (FHA), may be a more accessible path for those buyers looking to own a home in Vermont. This type of mortgage doesn’t require a high down payment and has less stringent requirements compared to conventional home loans.
It’s important to remember that FHA mortgages come with loan limits that vary based on the county. Homebuyers in Vermont have FHA limits ranging from $541,287 to $575,000 for a single-family home.
Vermont FHA loan limits by county
| County name | One unit | Two units | Three units | Four units | Median sales price |
|---|---|---|---|---|---|
| ADDISON COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $345,000 |
| BENNINGTON COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $290,000 |
| CALEDONIA COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $229,000 |
| CHITTENDEN COUNTY | $575,000 | $736,100 | $889,800 | $1,105,800 | $499,000 |
| ESSEX COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $140,000 |
| FRANKLIN COUNTY | $575,000 | $736,100 | $889,800 | $1,105,800 | $499,000 |
| GRAND ISLE COUNTY | $575,000 | $736,100 | $889,800 | $1,105,800 | $499,000 |
| LAMOILLE COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $342,000 |
| ORANGE COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $379,000 |
| ORLEANS COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $192,000 |
| RUTLAND COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $242,000 |
| WASHINGTON COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $323,000 |
| WINDHAM COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $299,000 |
| WINDSOR COUNTY | $541,287 | $693,050 | $837,700 | $1,041,125 | $379,000 |
How are FHA loan limits determined?
FHA loan limits are adjusted each year based on calculating the percentage of the national conforming loan limit determined by the Federal Housing Finance Agency (FHFA). The calculation also incorporates the previous year’s median sales price in each county.
There is a “floor,” or the lowest FHA loan limit, which is 65% of the national conforming loan limit. The “ceiling,” or the highest FHA loan limit, is 150% of the national conforming loan limit, generally reserved for areas with a high cost of living.
In 2026, the FHA loan limit floor is $541,287 for a single-family home and the ceiling is $1,249,125. Multifamily homes with more than one unit have higher loan limits.
How to qualify for an FHA loan in Vermont
FHA home loan requirements aren’t as strict as those for conventional loans. In Vermont, homebuyers can borrow up to $575,000 for a single-family home and up to $1,105,800 for a four-unit property, depending on the county where the property is located.
Lenders typically review the following when determining your eligibility for a loan:
- Minimum credit score and down payment requirements: Borrowers may be able to qualify for an FHA loan with a 500 credit score, but that will require a 10% down payment. With a credit score of at least 580, the down payment requirement drops to 3.5%.
- Primary residence: The home you purchase needs to be your primary residence for at least one year. It cannot be used as a vacation or rental property.
- Proof of income: FHA lenders will look at your employment and income history for the last two years, even though there isn’t a specific minimum requirement. Lenders also look at your assets and cash reserves when reviewing your eligibility for a loan.
- Mortgage insurance: Homebuyers are required to pay mortgage insurance for all FHA loans. The two parts include an upfront amount that’s rolled into your mortgage and the annual mortgage insurance premium (MIP), added monthly based on a percentage of your loan.
- Debt-to-income (DTI) ratio: Your DTI ratio is the percentage of your gross income that goes toward debt obligations. Lenders typically look for a borrower’s DTI to be a maximum of 43%, though you may be able to qualify with a higher ratio if you can meet other requirements.
- FHA home appraisal: You will need to complete the FHA home appraisal process to ensure the property is up to the FHA’s living conditions standards.
Buying a multifamily property with an FHA loan
The FHA loan program allows homebuyers to purchase multifamily homes ranging from two to four units. Buying a home with more than one unit is a common strategy for house hacking, where the homebuyer lives in one unit and rents out the rest.
In addition to the above requirements, lenders typically consider the following when assessing borrowers:
- Proof of income
- Homebuyer must live in one unit as their primary residence for at least one year
- Minimum credit score of 580 to make a 3.5% down payment
- Maximum DTI ratio of 43% or higher if borrower meets other lender requirements
| Number of units | Low-cost FHA loan limit |
|---|---|
| Two | $693,050 |
| Three | $837,700 |
| Four | $1,041,125 |
FHA lenders in Vermont
| Lender | LendingTree rating | Min. FHA credit score | |
|---|---|---|---|
 |
Expert review from LendingTree.
| 580 | |
 |
Expert review from LendingTree.
| 580 | |
 |
Expert review from LendingTree.
| 580 | |
 |
Expert review from LendingTree.
| 580 | |
 |
Expert review from LendingTree.
| 580 |
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