Austin Down Payment Assistance Program

Many potential homebuyers find themselves left out of the real estate market because they cannot afford to save up enough money for a down payment. To help overcome this obstacle, the City of Austin, Texas offers eligible, low-income applicants the Austin Down Payment Assistance Program. 

Available Assistance 
With the Austin Down Payment Assistance Program, eligible applicants can receive up to $40,000 in assistance funds to help cover their down payment, closing costs, and pre-paid expenses associated with buying a home. 

Eligibility Requirements 
The program is available to first-time homebuyers who have not owned a home in the last three years, or have been displaced or divorced. They must be purchasing single-family homes or condominiums within Austin’s Full Purpose city limits. Applicants must fall within the low-income range, which is defined as at or below 80% Median Family Income (limits shown below). They must be approved for a mortgage loan from a participating lender and receive a certificate of completion from a Homebuyer Education Course. The sales and/or appraisal price of the home cannot exceed $295,000.  

Income Limits 
1-person household: $54,700 
2-person household: $62,500 
3-person household: $70,300 
4-person household: $78,100 
5-person household: $84,350 

 
*Seller-funded down payment programs were eliminated in the Housing and Economic Recovery Act of 2008, but State and local government agencies are still permitted to help borrowers finance their homes with second mortgages and grants. These agencies set different requirements that a borrower needs to meet in order to qualify for the grant programs, such as property location, and purchase price, and income limits.           


Note: All figures mentioned above were accurate at the time of publication and may no longer be current. Visit the program website for updated information