Conventional DPA Grant

VLIP Grant

The Very Low-Income Purchase (VLIP) grant provides a $2,500 down payment and closing-cost credit for eligible first-time homebuyers using Fannie Mae's HomeReady or Freddie Mac's Home Possible mortgage programs — extended through February 28, 2027.

$2,500 credit
HomeReady / Home Possible
Through Feb 28, 2027

Program rules & guidelines

Who qualifies and how the credit applies

VLIP is built for very low-income first-time buyers who want conventional Fannie Mae or Freddie Mac financing — not FHA. Ryan and Steve screen your household income against local AMI before you write an offer.

VLIP eligibility at a glance

Grant amount

$2,500 applied directly to down payment, closing costs, pre-paids, or mortgage insurance premiums.

Income limit

Household income must be at or below 50% of Area Median Income (AMI) for your county.

First-time homebuyer

At least one borrower on the loan must qualify as a first-time homebuyer.

Homebuyer Education (HBE)

Required if all borrowers are first-time homebuyers.

Temporary buydowns

Not allowed.

Co-signors

Not allowed.

Renovation products

Not allowed.

Program deadline

Extended for purchase-ready loans through February 28, 2027.

First mortgage pairing

    {[ 'Fannie Mae HomeReady — 3% down conventional with flexible income rules', 'Freddie Mac Home Possible — similar low-down conventional path', 'Credit applied at closing toward down payment, costs, pre-paids, or MI premiums', ].map((item) => (
    • ))}

50% AMI is the cutoff

VLIP targets very low-income households. If your total household income exceeds 50% of your area's median, other DPA paths — Chenoa, IHCDA, or Luminate Path — may be a better fit.

Program guidelines and AMI limits change by county. This page is educational — final eligibility is confirmed when your file is underwritten against current VLIP and agency rules.

Income eligibility tool

Check your income against your county

Select your state and county, household size, and estimated annual household income. We compare it to the local 50% AMI (very low-income) limit used for VLIP screening — then show whether you may qualify for the $2,500 credit.

Area: {area.label}

$

Include income for all household members that lenders typically count for AMI screening.

First-time homebuyer?

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d="M9 7h6m-6 4h6m-6 4h4M5 5h14a1 1 0 011 1v12a1 1 0 01-1 1H5a1 1 0 01-1-1V6a1 1 0 011-1z" />

Your results will show here

Enter state, county, household size, income, and first-time status — then hit Calculate.

VLIP income screen

{vlipEligible ? `Based on $ (${area.label}) and a household of $, your income is at or below the 50% AMI estimate — and you meet the first-time buyer rule.` : incomeOk ? `Your income is within the 50% AMI estimate for $, but VLIP also requires at least one first-time homebuyer on the loan.` : `Your estimated income exceeds the 50% AMI limit for $ at this household size. Chenoa, IHCDA, or other DPA may still fit — Ryan and Steve can compare options.`}

50% AMI limit (-person)
Your household income
% of county limit {amiPct.toFixed(1)}%
First-time homebuyer
Est. VLIP credit

{!incomeOk && (

Limits are educational estimates based on HUD Very Low Income (50% AMI) tables by metro and non-metro area. Indiana includes all 92 counties; other mapped states use metro AMI for major counties with a non-metro fallback. Remaining states use a state non-metro estimate. Agency AMI sources and household-income counting rules can differ — final VLIP eligibility is confirmed during underwriting.

Why conventional?

How VLIP fits your purchase

Not every buyer should go FHA. When you want Fannie Mae or Freddie Mac pricing, PMI that can cancel, and long-term flexibility, VLIP bridges the cash gap without pushing you into government insurance for the life of the loan.

HomeReady and Home Possible already allow low down payments with income-based pricing advantages. The $2,500 VLIP credit stacks on top — lowering what you bring to the closing table while keeping you on a conventional first mortgage.

Conventional Loans First-Time Homebuyer Down Payment Assistance

VLIP vs FHA DPA

    {[ 'Conventional first mortgage — PMI can cancel once you reach 20% equity.', 'No upfront or monthly FHA mortgage insurance for the life of the loan.', '$2,500 grant credit reduces cash needed without a second-lien repayment layer.', 'Ideal when income is at or below 50% AMI and you qualify as a first-time buyer.', ].map((step, i) => (
  1. {i + 1}
    2. ))}

Ready to see if VLIP fits your file?

Use the county income calculator above, then share your results with Ryan and Steve. They will screen VLIP against HomeReady and Home Possible before you shop.

Purchase-ready loans must close by February 28, 2027 — start your pre-approval early so assistance can be reserved in time.

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