Austin Down Payment Assistance Program
Financial Assistance for Homebuyers in Texas
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.
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.
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
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.
The Austin Down Payment Assistance Program helps low-income families purchase their first home by offering up to $40,000 in assistance funds, to help cover the upfront costs of a mortgage.
In order to help more residents purchase their first homes in Harris County, the Community Services Department offers eligible applicants help with its Down Payment Assistance Program.
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 offers the My First Texas Home Taxable Mortgage Program (TMP) offers down payment and closing cost assistance of up to 5 percent of the mortgage loan.
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 6% percent of the loan amount is applied towards the down payment or closing costs.
Do you know what's on your credit report?
Learn what your score means.