City of Austin Down Payment Assistance Program (DPA)

Administered by: City of Austin Housing Department · City · Forgivable Loan

Funding status: Active

How much assistance

Up to $40,000 (Forgivable Loan)

Zero percent interest deferred forgivable second lien loan. Loans up to $14,900 are forgiven after 5 years of owner-occupancy. Loans from $14,901 to $40,000 are forgiven after 10 years.

Eligibility

  • Income limits: Household income at or below 80% of the Median Family Income (MFI). For 2025: $55,400 for one person, $78,750 for a family of four.
  • Purchase price limit: $579,025
  • First-time buyer required: Yes — Must not have owned a home in the last 3 years.
  • Geographic restrictions: Must purchase a single-family home or condominium within Austin's Full Purpose city limits.
  • Homebuyer education required: Yes

How to Apply for City of Austin Down Payment Assistance Program (DPA)

Step 1: Complete a HUD-approved homebuyer education course through Frameworks CDC or BCL of Texas, then apply through the City of Austin Housing Department.

Visit program website

Notes

Sales price of the home cannot exceed $579,025. Assistance provided as a second lien position loan.

Cities Where This Program Is Available