Beginning November 1, Eligible Vermonters Across the State Can Begin Process to Purchase New Mobile Home At-Cost

FOR IMMEDIATE RELEASE
October 28, 2024

Beginning November 1, Eligible Vermonters Across the State Can Begin Process to Purchase New Mobile Home At-Cost
What interested Vermonters can do now to be ready to register

Montpelier, Vt. - Governor Phil Scott, the State of Vermont Rapid Response Mobile Home Infill Program (MHIP) interagency team, and the Vermont State Housing Authority (VSHA) are announcing the launch of MHIP registration on Friday, November 1, 2024, to help Vermonters purchase affordable homes while simultaneously freeing up where those buyers live now for other Vermonters. For the first two weeks, only flood-impacted Vermonters may register for MHIP. Starting November 15, MHIP is available to everyone.

"Vermont has faced a housing crisis for years, which was made worse by recent floods," said Governor Phil Scott. "This program, which has been in place for four months, will have 30 homes across the state ready to be purchased by the end of the year. These homes will offer Vermonters a safe and healthy place to live at an affordable price, which is a win-win."

MHIP makes mobile homes available for sale at-cost to eligible low- and middle-income homebuyers. First, the MHIP team identifies vacant mobile home lots in established parks and invests thousands of dollars in new concrete pads to support new homes. Then, VSHA uses state grant money to purchase energy-rated homes and identify income-eligible buyers. VSHA will also provide resources to help buyers secure financing from a lender that may include down payment assistance, lower interest mortgage rates, and/or closing assistance. To date, MHIP has identified 57 lots at parks in Bennington, Brattleboro, Westminster, Springfield, Braintree, Milton, Morristown, Coventry, and St. Johnsbury that can accommodate new homes.

"This is benefitting that middle-income bracket because many families can't afford to buy a new single-family home in today's housing market," says VSHA Executive Director Kathleen Berk. "So, this really hits what is often referred to as the Missing Middle."

MHIP is only available to current Vermont residents. Potential homebuyers can take two important steps now to prepare for the start of MHIP registration on November 1:

1. Determine if you are eligible. In addition to being a Vermont resident, registrants must earn 120% or less of the Area Median Income in the county where they currently reside, not in the county where they wish to purchase a MHIP home.
2. Get prequalified. This step involves going to a lending institution and supplying them with your financial information. If the lending institution sees fit, it will issue you a pre-qualification letter that provides prospective buyers with a range of how much they can spend on a home. Please note: this is different than obtaining a mortgage. That step comes later in the process.

Starting November 1, interested homebuyers can visit the MHIP website and register by filling out an Interest and Eligibility Form, see a sample Purchase and Sale Agreement, and learn about the timeline and next steps in the homebuying process.

Vermonters who aren't prepared to buy today have time to take advantage of this program. While the first 30 MHIP homes are expected to be ready for occupancy by the end of 2024, current funding allows for an additional 70 to hit the market in 2025.

"If people aren't ready to purchase at this moment, this is a good opportunity for them to get their finances and credit in order so they can apply further down the road," says Tyler Maas, Director of Program and Housing Development at VSHA.

Governor Scott established an interagency mobile home team in January to quickly and affordably place mobile homes into vacant lots to generate more homeownership opportunities, like this home in Coventry. MHIP was funded by the Emergency Board in August when it allocated $7M to the effort. Learn more about the MHIP program at https://accd.vermont.gov/housing/funding/MHIP.

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