Consumer assistance

Homebuyer education

NeighborWorks® HomeOwnership Centers of Vermont offers:

Orientation sessions, workshops, and individual counseling to help future homebuyers
Assistance with the purchase of homes
Continuing support for new homeowners

The centers are a collaborative effort among VHFA, Neighborhood Reinvestment Corp., local lenders, real estate companies and the following nonprofit housing organizations:

Food and fuel assistance

The Vermont Food and Fuel Partnership is Gov. Jim Douglas's program to help Vermonters address the increasing costs of home heating fuels, gasoline and groceries.

Avoiding foreclosure

If you're having difficulties making mortgage payments for your property, visit the U.S. Dept. of Housing and Urban Development (HUD) for information on how avoid foreclosure.

Learn more at this HUD foreclosure resource.

Predatory lending

If it sounds too good to be true, chances are, it is. Despite this oft-repeated adage, Vermonters occasionally fall prey to loan deals they think will be helpful, but which end up getting them into financial trouble.

Most Vermont lending institutions are trustworthy. But you still need to get all the facts before you sign your name to a home loan.

What are some of the tactics to watch for when getting a home loan?

Steering

Pressuring you into a higher-interest loan when a less expensive option is available.

Hidden balloon payments

Failing to disclose a big payment due at the end of the loan.

Flipping

Convincing you to refinance when it's not to your advantage, resulting in additional fees and costs.

Credit insurance

Pressuring you to buy credit insurance, which may be expensive and may offer little or no protection.

Undisclosed prepayment penalties

Failing to tell you about a penalty you'll pay if you pay off your loan before it's due.

How can I protect myself?

Be honest with yourself about what you can really afford to pay.
Know exactly what you're agreeing to — including all costs and fees — before you sign your loan papers.
Always shop around and compare interest rates and terms. Get advice from a housing counselor, a bank, a credit union, a licensed mortgage lender or someone you know and trust.
Be suspicious of high-pressure tactics. Walk away if you're being pushed.
Get copies of your loan documents before you close, and don't sign anything you haven't read.
If you don't understand something about your loan, ask a trusted friend or an attorney. Don't wait until your closing.
And if it sounds too good to be true, it probably is to good to be true.

Who can I call for help and advice?

Vermont Housing Finance Agency is one of a dozen member organizations of the Vermont Responsible Lending Initiative, a group devoted to promoting responsible lending and consumer education.

The initiative suggests consumers with predatory lending questions and complaints call:

Vermont Consumer Assistance Program, Vermont Attorney General's Office, 1-800-649-2424

You can also contact:

Vermont Dept. of Banking, Insurance, Securities and Health Care Administration, (802) 828-3307
Consumer Credit Counseling Service of New Hampshire and Vermont, 1-800-327-6778
NeighborWorks® HomeOwnership Centers of Vermont:
Burlington — (802) 660-0642
St. Albans — (802) 527-2361
Central Vermont — (802) 476-4493 x211
Lyndonville — (802) 626-1175
Newport — (802) 334-1541
Springfield — (802) 885-1856
West Rutland — (802) 438-2303
Brattleboro — (802) 254-4604

What are some other online resources for predatory lending?

HUD offers predatory lending resources on the Web. The American Association of Retired Persons (AARP) also has information on its Web site.

Learn more at this HUD predatory lending resource.

Reverse equity mortgages

A "reverse equity mortgage" is a loan against your home that you don't have to pay back for as long as you live in your home.

VHFA does not offer reverse equity mortgages.

Learn more about reverse equity mortgages.

Burlington youth participates in NeighborWorks® event