This program is designed for homebuyers to purchase a home anywhere in Travis County, including the City of Austin, by helping them overcome the obstacle of down payment costs. A grant of up to 5 percent of the loan amount is applied towards the down payment or closing costs.

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September 21, 2019
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Hill Country Home Down Payment Assistance

Financial Assistance for Homebuyers in Texas

In order to help homebuyers obtain government-backed FHA, VA or USDA-RD loan financing, the Travis County Housing Finance Corporation offers the Hill Country Home Down Payment Assistance (DPA) Program. It is designed for homebuyers to purchase a home anywhere in Travis County, including the City of Austin, by helping them overcome the obstacle of down payment costs.

With this program, eligible low- to moderate-income homebuyers will receive a 30-year fixed rate loan and a non-repayable grant equal to 4 or 5 percent of the loan amount going towards the down payment or closing costs. The program may be used in conjunction with other assistance programs, including Mortgage Credit Certificates (MCCs).

Eligibility Requirements
To be eligible for the program, all borrowers must meet the following criteria:
  • Applicants must have a minimum credit score of 640 and a maximum of 45 debt-to-income (DTI) ratio.
  • Maximum credit qualifying income may not exceed 140% of area median income, which for 2016 is $108,920.
  • All first-time homebuyers must successfully complete a HUD-approved homebuyer education course.
  • The purchase price must fall under the set limit, which is determined by the lender based on the borrower's credit, income, debt-to-income ratio, and other factors.
Property Requirements
  • The property must be located anywhere in Travis County, including in the City of Austin.
  • Buyers must occupy the home as their principal residence, but there is no requirement on how long they must live in the home.
  • The program may only be used to purchase a home (i.e., no refinancing).
  • The program covers new or existing homes and can include single-family homes, condominiums, or townhomes.
  • Manufactured homes are not permitted to participate in the program 
(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.)
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Down payment assistance programs and/or grants were researched by the team at FHA.com. Please note that all programs listed on this website may involve a second mortgage with payments that are forgiven, deferred, or subsidized in some manner until resale of the mortgaged property.

FHA.com's compilation is not a complete list, but it can serve as a starting point in your search for the down payment assistance program or grant for your situation. It is up to the consumer to contact these entities and find out the specifics of each program.

Down Payment Grants in Texas

The Southeast Texas Housing Finance Corporation (SETH) offers Texas residents the 5 Star Texas Advantage Program, which helps eligible applicants with down payment and closing cost assistance in the form of a grant.

This program is designed for homebuyers to purchase a home anywhere in Travis County, including the City of Austin, by helping them overcome the obstacle of down payment costs. A grant of up to 5 percent of the loan amount is applied towards the down payment or closing costs.

The Southeast Texas Housing Finance Corporation (SETH) offers Texas residents the Home Star Program, which helps eligible applicants with down payment and closing cost assistance. SETH provides up to 4 percent of the total loan amount in the form of a down payment assistance grant.

Homeownership Across Texas grants 5 percent of the loan amount with VA, FHA, or USDA financed loans. Borrowers with conventional loans receive 3 percent grants. Grants do not come with any repayment or recapture period, nor is there a first-time homebuyer requirement.

This initiative provides teachers, police and correctional officers, fire fighters and EMS personnel, and veterans with down payment assistance between 3 and 5 percent of the loan amount and a 30-year fixed rate mortgage with several rates and loan options.

Along with a competitive, fixed interest, 30-year home loan, the Texas Department of Housing and Community Affairs’ My First Texas Home’s Taxable Mortgage Program (TMP) offers down payment and closing cost assistance of up to 5 percent of the mortgage loan.

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