Vermont’s housing market in 2025 moved toward better balance as inventory slowly increased and price growth moderated. While affordability remained a challenge for many buyers, easing mortgage rates in the second half of the year helped improve purchasing power. Union Bank continued to see strong, steady demand for mortgage financing across the state, led by well qualified local buyers and repeat homeowners leveraging significant home equity gains.
One standout in 2025 was continued interest in construction and renovation lending, as Vermont’s limited housing stock encouraged many borrowers to build or improve existing homes. Union Bank’s Construction to Permanent program remained one of our most utilized options, offering a single close solution that helps borrowers manage costs and reduce uncertainty during the building process.
First time homebuyers continued to rely on VHFA programs, with Union Bank again ranking among the leading lenders helping Vermonters access down payment assistance and lower interest opportunities. Our LendTogether shared equity program also gained momentum in 2025, helping income eligible buyers achieve homeownership with reduced upfront costs while keeping long term affordability in mind.
With many homeowners holding low fixed rate loans, home equity borrowing remained a key focus. Union Bank saw elevated use of Home Equity Loans and Lines of Credit, as strong equity positions allowed customers to consolidate debt, fund renovations, or support major life expenses.
As we look ahead, Vermont buyers, builders, and homeowners continue to prioritize local expertise and flexible lending options. Union Bank remains committed to offering personalized, community focused mortgage solutions to help Vermonters reach their goals—no matter what 2026 brings.
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