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.
Program rules & guidelines
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.
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.
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
Limits are educational estimates based on HUD Very Low Income (50% AMI) tables by metro and non-metro area. Actual eligibility is determined by the lender at application.
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.
Your results will show here
Enter state, county, household size, income, and first-time status — then hit Calculate.
Why conventional?
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.
VLIP vs FHA DPA
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.
See all down payment assistance options