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Get Matched Free →Austin, TX First-Time Homebuyer Programs & Down Payment Assistance (2025)
Austin is one of the fastest-growing cities in the United States, and with a median home price around $520,000, first-time buyers face a significant affordability challenge. Fortunately, several down payment assistance programs at the city, county, state, and federal levels can help bridge the gap.
The City of Austin offers its own Down Payment Assistance program providing up to $40,000 for households earning at or below 80% of the median family income, with a purchase price limit of $579,025. Travis County runs the Hill Country Home Down Payment Assistance Program offering 4% to 6% of the loan amount as a forgivable second lien. The Housing Authority of the City of Austin (HACA) provides $10,000 in down payment assistance to eligible HACA residents. BCL of Texas offers NeighborhoodLIFT grants of up to $7,500 for qualifying buyers in the Austin area, and Austin Habitat for Humanity builds affordable homes for families earning 30% to 80% of the area median income.
At the state level, the Texas Department of Housing and Community Affairs (TDHCA) offers the My First Texas Home program with up to 5% in forgivable down payment assistance, while the Texas State Affordable Housing Corporation (TSAHC) runs the Home Sweet Texas Home Loan Program and the Homes for Texas Heroes Program, both offering up to 5% as a grant. Note that the SETH 5 Star Texas Advantage Program is not available in Travis County.
Federal programs including FHA loans (3.5% down payment), VA loans (zero down for eligible veterans), USDA loans (zero down in eligible rural areas), and the national HUD Good Neighbor Next Door program are also available to Austin buyers.
Estimated closing costs in Austin range from $10,500 to $15,500, depending on the loan amount and type of transaction. Many of the programs listed above can be combined with closing cost assistance to reduce total out-of-pocket expenses.
Top Homebuyer Programs in Austin
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| City of Austin Down Payment Assistance Program (DPA) | Forgivable Loan | Up to $40,000 | Yes | View → |
| HACA Down Payment Assistance Program | Grant | $10,000 | Yes | View → |
| Travis County Hill Country Home Down Payment Assistance Program | Forgivable Loan | 4%, 5%, or 6% of the initial principal balance of the loan amount | No | View → |
| FHA Loans | Government-Insured Mortgage | Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026) | No | View → |
| FHLBA Community Partners Product | Forgivable Loan | Up to $20,000 in home purchase assistance for down payment and closing costs | No | View → |
| FHLBA First Time Homebuyer Product | Forgivable Loan | Up to $17,500 in home purchase assistance for down payment and closing costs | Yes | View → |
| FHLBA Workforce Housing Plus+ | Forgivable Loan | Up to $15,000 in home purchase assistance for down payment and closing costs | No | View → |
| Good Neighbor Next Door (HUD) | Government Property Sale Program | 50% discount off the list price of HUD-owned homes | Yes | View → |
| Home Possible Mortgage (Freddie Mac) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HomeReady Mortgage (Fannie Mae) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HUD $100 Down Program | FHA-Financed HUD REO Purchase | Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs. | No | View → |
| USDA Rural Development Loans | Government-Guaranteed Mortgage | 100% financing (no down payment required); loan amount up to appraised value | No | View → |
| VA Loans | Government-Guaranteed Mortgage | No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026) | No | View → |
| Austin Habitat for Humanity Homeownership Program | Zero-Interest Loan | Affordable home purchase (homes starting around $152,000 to $183,000) | Yes | View → |
| BCL of Texas NeighborhoodLIFT Program (Austin) | Forgivable Loan | Up to $7,500 | No | View → |
| Home Sweet Texas Home Loan Program | Grant | Up to 5% of the total loan amount | No | View → |
| Homes for Texas Heroes Program | Grant | Up to 5% of the loan amount (between 3% and 5%) | No | View → |
| My First Texas Home | Forgivable Loan | Up to 5% of the first lien mortgage amount | Yes | View → |
| SETH 5 Star Texas Advantage Program | Forgivable Loan | Up to 5% of the loan amount | No | View → |
- Type:
- Forgivable Loan
- Amount:
- Up to $40,000
- First-time only:
- Yes
- Type:
- Grant
- Amount:
- $10,000
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- 4%, 5%, or 6% of the initial principal balance of the loan amount
- First-time only:
- No
- Type:
- Government-Insured Mortgage
- Amount:
- Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026)
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to $20,000 in home purchase assistance for down payment and closing costs
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to $17,500 in home purchase assistance for down payment and closing costs
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Up to $15,000 in home purchase assistance for down payment and closing costs
- First-time only:
- No
- Type:
- Government Property Sale Program
- Amount:
- 50% discount off the list price of HUD-owned homes
- First-time only:
- Yes
- Type:
- Government-Guaranteed Mortgage
- Amount:
- Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
- First-time only:
- No
- Type:
- FHA-Financed HUD REO Purchase
- Amount:
- Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs.
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- 100% financing (no down payment required); loan amount up to appraised value
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026)
- First-time only:
- No
- Type:
- Zero-Interest Loan
- Amount:
- Affordable home purchase (homes starting around $152,000 to $183,000)
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Up to $7,500
- First-time only:
- No
- Type:
- Grant
- Amount:
- Up to 5% of the total loan amount
- First-time only:
- No
- Type:
- Grant
- Amount:
- Up to 5% of the loan amount (between 3% and 5%)
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to 5% of the first lien mortgage amount
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Up to 5% of the loan amount
- First-time only:
- No
How to Apply
- Step 1:
Determine Your Eligibility
Review income limits, credit score requirements, and first-time buyer rules for each program. Austin's city DPA requires household income at or below 80% of the median family income (MFI). Travis County's program goes up to 140% of the area median income. State programs generally require a minimum credit score of 620 to 640.
- Step 2:
Complete Homebuyer Education
Most programs require completion of a HUD-approved homebuyer education course. Local providers include Frameworks CDC and BCL of Texas, both based in Austin. Online courses through eHome America are also accepted by many programs.
- Step 3:
Get Pre-Approved with a Participating Lender
Contact a lender approved to originate loans under the specific program you are applying for. State programs like My First Texas Home and Home Sweet Texas require using their network of participating lenders. The City of Austin DPA also requires working with an approved lender.
- Step 4:
Find an Eligible Property
Work with a real estate agent to find a home within the program's purchase price limits. The City of Austin DPA has a $579,025 limit. Travis County's Hill Country Home program has a $364,452 limit. The property must be your primary residence and located within the program's service area.
- Step 5:
Submit Your Application
Once you have a signed purchase contract, submit the DPA application through your lender or directly to the administering agency. Be prepared to provide income documentation, tax returns, bank statements, and proof of homebuyer education completion.
- Step 6:
Close on Your Home
The DPA funds are coordinated at closing and applied toward your down payment and eligible closing costs. Review your Closing Disclosure carefully to confirm all assistance is reflected correctly.