Saving for a down payment and closing costs in Central Texas can feel out of reach when home prices and everyday living expenses keep climbing.
This guide breaks down every verified Austin down payment assistance option for 2026, including the City of Austin program, Travis County Hill Country Home, local land trusts, and statewide loans that work across the Austin-Round Rock-San Marcos metro.
Check Your Austin Home Purchase Eligibility
You will see the exact income limits, purchase price caps, forgiveness rules, and application steps so you can match your household to the right assistance before making an offer.
Austin-area Down Payment Assistance at a Glance (2026)
Buyers shopping in Austin and the surrounding counties can choose between city programs, county housing finance corporations, nonprofit builders, and statewide agencies. Because income limits, price caps, and funding change periodically, the figures below reflect the current published numbers and should be confirmed with the program or a participating lender.
| Program | Service Area | Assistance Amount & Structure | Income Limit (Current Published) | Max Purchase Price | First-Time Buyer Required? |
|---|---|---|---|---|---|
| City of Austin DPA (AHFC) | Austin Full Purpose city limits | $1,000–$14,999 (5-yr forgivable) or $15,000–$40,000 (10-yr forgivable), 0% 2nd lien | At or below 80% MFI ($74,800 for 1 person; $106,800 for 4) | $440,000 (per city web page) | Yes (3 years; displaced/divorced exceptions) |
| Travis County Hill Country Home | All of Travis County (including Austin) | 4%, 5%, or 6% of 1st loan (county lists net assistance of 4.5%, 3.5%, or 2.5% after lender fees), 0% 10-yr forgivable 2nd lien | $138,460 (140% AMI) | $364,452 | No |
| Austin Community Land Trust (ACLT) | Austin | Buyer owns the house and leases the land for a minimal fee; resale formula lets owners earn 2% of the house annually as appreciation | Below 80% Austin MFI | Resale prices set by ground lease and resale formula | Yes |
| Austin Habitat for Humanity | Austin service area (including S. Austin, E. Travis, Lockhart) | Homes starting at $152,000; 100% financing, below-market rates, and DPA support (amount not stated) | Within Habitat guidelines (references 80% MFI defined by HUD; confirm) | Not stated | Yes (3 years; exceptions for death, divorce, disaster) |
| CAHFC Additional DPA Gift Funds | Hays, Williamson, Bastrop, Caldwell & partner counties | $2,500 gift (Hays/Williamson) or $7,500 gift (Bastrop/Caldwell) stacked with TDHCA loan; confirm current amounts | Follows TDHCA loan limits (confirm current figures) | Follows TDHCA loan limits | Depends on paired TDHCA loan |
| TDHCA My First Texas Home | Statewide (including Austin MSA) | 2%–5% of loan amount; 0% 30-yr deferred or 3-yr forgivable 2nd lien (per daily Rate Notice) | $134,400 (1–2 persons) / $154,560 (3+) non-targeted in Travis/Williamson | $598,019 non-targeted ($730,912 targeted) in Travis/Williamson | Yes (exemptions for veterans & targeted areas) |
| TDHCA My Choice Texas Home | Statewide (including Austin MSA) | 2%–5% of loan amount; 0% 30-yr deferred or 3-yr forgivable 2nd lien | $107,520 (conv. at/below 80% AMI) or $228,480 (conv. above 80% & gov't) in Travis/Williamson | None | No |
| TSAHC Home Sweet Texas & Heroes | Statewide (including Austin MSA) | 2%–5% grant or 3-yr forgivable 2nd lien (non-bond); 4%–5% 30-yr repayable (bond) | Up to $201,600 (HST) or $228,480 (Heroes) for non-bond in Travis/Williamson | None for non-bond without MCC ($598,019 with MCC/bond) | No for non-bond without MCC; Yes for bond/MCC |
City of Austin Down Payment Assistance Program (AHFC)
The flagship local option is the City of Austin Down Payment Assistance (DPA) program, administered by the Austin Housing Department and the Austin Housing Finance Corporation (AHFC). It provides up to $40,000 to help income-eligible first-time buyers cover their down payment, closing costs, and prepaid expenses on a home inside Austin's Full Purpose city limits.
Two Forgivable Loan Options
According to the official AHFC Income Eligibility Packet (2025), the city structures its assistance as a 0% interest, deferred second-lien loan with no monthly payments. The amount you receive is based on your demonstrated financial gap and falls into one of two tiers:
| Tier | Assistance Amount | Interest | Affordability & Forgiveness Period |
|---|---|---|---|
| DPA Option One | $1,000 up to $14,999 | 0% interest | Deferred 5-year forgivable second lien |
| DPA Option Two | $15,000 up to $40,000 | 0% interest | Deferred 10-year forgivable second lien |
Because the loan is deferred and forgivable, you make no monthly payments on the assistance as long as you follow the program terms. The loan comes due if the home is sold, refinanced, gets a home equity loan, is leased, or changes title before the 5-year or 10-year affordability period ends.
Eligibility and Property Rules
To qualify for City of Austin down payment assistance, both the buyer and the property must meet the requirements outlined on the city's homebuyer resources page and in the AHFC eligibility packet:
- First-Time Homebuyer: You cannot have owned a home in the past 3 years, though displaced or divorced buyers may qualify.
- Income Limit: Household income must be at or below 80% of Median Family Income (MFI).
- Citizenship: Borrowers must be U.S. citizens or legal permanent residents.
- Buyer Contribution and Reserves: You must put in a minimum $500 borrower contribution (earnest money from your own funds) and have at least one month of principal, interest, taxes, and insurance (PITI) in reserves. The packet says asset limits apply but does not state the amount, so confirm the asset limit with the Austin Housing Department or a participating lender.
- No Cash Back: No principal reduction or cash back to the borrower is permitted at closing.
- Location: The property must be inside Austin's Full Purpose city limits. Properties in the extraterritorial jurisdiction (ETJ) are not eligible.
- Purchase Price Cap: The city's homebuyer web page states that the home's sales price cannot exceed $440,000 (the eligibility packet states market-rate DPA sales prices may not exceed 95% of the area median purchase price based on FHA data).
- Eligible Property Types: Single-family homes, townhomes, and condominiums qualify. Duplexes are not eligible. Manufactured homes must be new and placed on a permanent foundation, and any new construction must meet Visitability and S.M.A.R.T. Housing standards. To learn more about financing condos, see our guide to Texas Condo Loans.
- First Mortgage Rules: Your primary loan must be a 30-year, fully amortizing fixed-rate mortgage. The interest rate cannot exceed the prevailing rate by more than 0.75%, discount points cannot exceed 1.5%, and the combined loan-to-value (first and second loans together) may not exceed the property value including closing costs.
Funding Status and How to Apply
The City of Austin homebuyer page does not display an open or closed banner, and the AHFC packet notes that complete application packages are processed on a first-come, first-served basis, subject to funding availability. Buyers do not submit the application on their own:
- Verify City Limits: Confirm that the home you want to buy is inside Austin's Full Purpose city limits.
- Complete Homebuyer Education: Take an approved homebuyer education course and earn your certificate before signing the agreement.
- Get Approved with a Participating Lender: Apply for your first mortgage through a participating lender listed by the city, and gather required documents (ID, Social Security card, 2 months of pay stubs, 2 years of W-2s or 1099s, and 6 months of bank statements).
- Lender Submits the Application: Your lender's trained loan officer submits the DPA application on your behalf.
Check Your Austin Home Purchase Eligibility
Austin-Round Rock-San Marcos HUD FY2026 Income Limits
HUD publishes income limits for the Austin-Round Rock-San Marcos, TX Metropolitan Statistical Area (MSA), which covers Bastrop, Caldwell, Hays, Travis, and Williamson counties. For FY2026, HUD sets the area median family income at $134,400.
Below are the current published FY2026 income limits by household size from HUD USER and the City of Austin Housing Department (effective June 1, 2026). These figures can change each year, so always confirm the current limits with your lender.
| Income Tier | 1 Person | 2 Persons | 3 Persons | 4 Persons | 5 Persons | 6 Persons | 7 Persons | 8 Persons |
|---|---|---|---|---|---|---|---|---|
| 30% MFI (HUD Extremely Low) | $28,250 | $32,250 | $36,300 | $40,300 | $43,550 | $46,750 | $50,040 | $55,720 |
| 50% MFI (HUD Very Low) | $47,050 | $53,800 | $60,500 | $67,200 | $72,600 | $78,000 | $83,350 | $88,750 |
| 60% MFI (City of Austin) | $56,460 | $64,560 | $72,600 | $80,640 | $87,120 | $93,600 | $100,020 | $106,500 |
| 80% MFI (HUD Low / City of Austin DPA Cap) | $74,800 | $85,450 | $96,150 | $106,800 | $115,350 | $123,900 | $132,450 | $141,000 |
| 100% MFI (City of Austin) | $94,100 | $107,500 | $120,950 | $134,400 | $145,150 | $155,900 | $166,650 | $177,400 |
| 120% MFI (City of Austin) | $112,900 | $129,000 | $145,150 | $161,300 | $174,200 | $187,100 | $200,000 | $212,900 |
| 140% MFI (City of Austin) | $131,700 | $150,550 | $169,350 | $188,150 | $203,200 | $218,250 | $233,300 | $248,350 |
For a broader look at how county income caps work across the state, read our guide to Texas Homebuyer Income & Purchase Price Limits.
Travis County Hill Country Home Program
If you earn more than 80% MFI, already own a home, or are shopping outside Austin's city limits in wider Travis County, the Travis County Housing Finance Corporation offers the Hill Country Home down payment assistance program. It works anywhere in Travis County, including inside the City of Austin.
- Assistance Amount: Hill Country Home provides 4%, 5%, or 6% of the first-loan principal as a 0% interest, 10-year forgivable second mortgage. Because participating lenders may charge a program fee, the county page describes net assistance of 4.5%, 3.5%, or 2.5%.
- Loan Types: Pairs with a 30-year fixed FHA loan, VA loan, USDA-RD loan, or Freddie Mac HFA Advantage conventional loan.
- Income and Price Limits: The current published household income limit on the county page is 140% AMI ($138,460), and the maximum purchase price is $364,452 (no effective date is shown on the county page, so confirm current figures with a participating lender).
- Credit and DTI: Requires a minimum 640 FICO score and a maximum 45% debt-to-income (DTI) ratio.
- First-Time Buyer Rule: You do not have to be a first-time homebuyer. However, first-time buyers are required to complete a HUD-approved homebuyer education course.
- Property Eligibility: Open to new or existing single-family homes, condos, and townhomes. The home must be your principal residence, with no minimum occupancy period. Purchases only; manufactured homes are not eligible.
Other Austin & Central Texas Homeownership Programs
Beyond standard second-lien down payment assistance, several Central Texas organizations offer affordable homeownership models or supplementary gift funds.
Austin Community Land Trust (ACLT)
Operated through AHFC, the Austin Community Land Trust separates ownership of the house from the land. Under the ACLT model, you own the house and lease the land from ACLT for a minimal fee.
To qualify, you must be a first-time homebuyer with gross household income below 80% of Austin MFI, keep your debt within ACLT's DTI guidelines, complete a HUD-certified homebuyer education class, and obtain pre-approval from an ACLT-approved lender. Resale prices are governed by the ground lease and a resale formula under which ACLT homeowners earn 2% annually of the house as appreciation. Interested buyers submit an Initial Application and pre-certification form on ACLT's website.
Austin Habitat for Humanity
Austin Habitat for Humanity builds affordable homes for first-time buyers in communities such as Persimmon Point (South Austin), Goodnight Ranch (South Austin), Whisper Valley (East Travis County), and Lockhart (Caldwell County). Homes start at $152,000 and come with 100% financing, below-market interest rates through participating lenders, and down payment assistance support.
Applicants must be U.S. citizens or legal permanent residents who have lived and worked in the service area for at least 6 months, have a 620 or higher credit score, have income within Austin Habitat's guidelines (its requirements PDF references 80% of Median Family Income as defined by HUD in 2026; confirm the exact chart with Austin Habitat), and have not owned a home in the past 3 years (with exceptions for death, divorce, or natural disaster).
Capital Area HFC Gift Funds for Williamson, Hays, Bastrop & Caldwell Counties
For buyers shopping in the surrounding suburbs and neighboring counties, the Capital Area Housing Finance Corporation (CAHFC) partners with the Texas Department of Housing and Community Affairs (TDHCA) to provide Additional DPA Gift Funds that require no repayment. These funds are offered first come, first served and must be combined with a TDHCA My First Texas Home or My Choice Texas Home loan (or TDHCA's no-DPA first-lien option):
- Hays and Williamson Counties: $2,500 in gift funds.
- Bastrop and Caldwell Counties: $7,500 in gift funds (also available in Blanco, Burnet, Fayette, Lee, and Llano counties).
Both TDHCA's August 17, 2026 program matrix and a CAHFC partner flyer (marked effective May 27, 2025) list the $2,500 and $7,500 gift amounts. Note that the 2025 flyer lists older My First Texas Home limits for Hays and Williamson ($133,800 for 1–2 persons, $153,870 for 3+ persons, and a $593,363 non-targeted price cap), whereas TDHCA's current published limits for Williamson County, effective July 13, 2026, are slightly higher (shown in the section below). Because local grant funds can run out or update, confirm current CAHFC gift availability and limits with a participating lender.
Check Your Austin Home Purchase Eligibility
Pairing Local Purchases with TDHCA & TSAHC Statewide Programs
If local price limits ($440,000 for the City of Austin and $364,452 for Travis County Hill Country Home) are too tight for the homes you are considering, statewide programs from TDHCA and TSAHC offer much higher price caps, or no purchase price cap at all on some options, throughout the Austin area.
Rates for TDHCA and TSAHC loans are set daily by each program, and a participating lender can quote today's rate. Our team helps you check your eligibility, compare these statewide options against local Austin programs, and get connected with a participating lender.
TDHCA: My First Texas Home & My Choice Texas Home
TDHCA offers two primary mortgage programs that provide 2% to 5% of the total loan amount in down payment and closing cost assistance as a 0% interest second lien, structured as either a 30-year deferred repayable loan or a 3-year deferred forgivable loan (which option is offered on a given day depends on TDHCA's daily Rate Notice):
- My First Texas Home (MFTH): Designed for first-time buyers, qualified veterans, and buyers purchasing in a Qualified Targeted Census Tract. It works with FHA, VA, and USDA loans (minimum 620 credit score) and can be paired with a Texas Mortgage Credit Certificate (TXMCC) that currently provides a 15% federal tax credit on annual mortgage interest paid (per TDHCA's October 26, 2026 Rate Notice).
- My Choice Texas Home (MCTH): Open to both first-time and repeat buyers using FHA, VA, USDA, Fannie Mae HFA Preferred, or Freddie Mac HFA Advantage loans (minimum 620 credit score). MCTH has no purchase price limit and only counts the income of borrowers on the loan application.
TSAHC: Home Sweet Texas & Homes for Texas Heroes
The Texas State Affordable Housing Corporation (TSAHC) runs two programs across all Austin-area counties:
- Home Sweet Texas Home Loan Program: Open to low- and moderate-income buyers in any profession.
- Homes for Texas Heroes: Offers higher non-bond income limits and a free Mortgage Credit Certificate (saving the $400 issuance fee when paired with non-bond DPA) for full-time public K-12 classroom teachers, teacher aides, school librarians, school counselors, school nurses, peace officers, firefighters, EMS personnel, county jailers, TDCJ and TJJD corrections officers, public security officers, nursing and allied health faculty, and qualifying veterans (a definition that includes certain active-duty service members stationed in Texas).
Both TSAHC programs offer 2% to 5% in assistance as either an outright grant (on FHA, VA, and USDA loans; does not need to be repaid after six months from first-lien closing) or a 3-year deferred forgivable second lien (on government and HFA conventional loans). Minimum credit scores are 620 for government loans and 640 for conventional loans. Non-bond DPA used without an MCC has no first-time buyer requirement and no purchase price limit. TSAHC says its No-DPA first mortgage can be combined with city or county DPA programs, and other subsidy programs can be layered if they meet agency and master servicer guidelines; with the grant, second-lien help from other sources may be allowed in certain cases.
2026 TDHCA & TSAHC Limits for Travis and Williamson Counties
Here are the current published income and 1-unit purchase price limits for Travis and Williamson counties, effective July 13, 2026 for TDHCA and per TSAHC's county limit tool (which shows no effective date). Confirm current figures with a participating lender:
| Program & Option | Income Limit (1–2 Persons) | Income Limit (3+ Persons) | Max Purchase Price (Non-Targeted) | Max Purchase Price (Targeted Area) |
|---|---|---|---|---|
| TDHCA My First Texas Home / MCC (Non-Targeted) | $134,400 | $154,560 | $598,019 | $730,912 |
| TDHCA My First Texas Home / MCC (Targeted Tract) | $161,280 | $188,160 | $598,019 | $730,912 |
| TDHCA My Choice Texas Home (Conv. at/below 80% AMI) | $107,520 (any size) | $107,520 (any size) | No limit | No limit |
| TDHCA My Choice Texas Home (Conv. above 80% AMI & FHA/VA/USDA) | $228,480 (any size) | $228,480 (any size) | No limit | No limit |
| TSAHC Home Sweet Texas (Non-Bond, No MCC, Gov't or Conv. above 80%) | $201,600 (any size) | $201,600 (any size) | No limit | No limit |
| TSAHC Homes for Texas Heroes (Non-Bond, No MCC, Gov't or Conv. above 80%) | $228,480 (any size) | $228,480 (any size) | No limit | No limit |
| TSAHC Non-Bond + MCC (Both Programs, Non-Targeted) | $134,400 | $154,560 | $598,019 | $730,913 |
| TSAHC Bond DPA (Both Programs) | $107,520 | $107,520 | $598,019 | Confirm with lender |
To see how these fit into the broader picture of qualifying for a mortgage, review the Requirements to Buy a House in Texas and our list of Texas first-time homebuyer grants and programs.
Next Steps to Claim Your Austin Homebuyer Assistance
Whether you are aiming for up to $40,000 in forgivable assistance inside Austin's city limits, a Travis County Hill Country Home loan, or a statewide TDHCA or TSAHC program with no purchase price cap, the smart move is to check your numbers before you start touring houses.
Because most of these programs require you to apply through a participating lender and complete homebuyer education before closing, getting pre-screened early helps you shop in the right price range. Our team can help you review your income, credit, and target neighborhoods, compare your best Texas Home Loan Options, and get connected with a participating lender.
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