Practical Guidance and the Financial Support Every First-Time Austin Buyer Should Know
Buying a home in Austin is no small feat, especially these days. With home prices often stretching far beyond what first-time buyers expect, that initial down payment can feel like the tallest hurdle of all. Thankfully, Austin and a few partner organizations have put serious effort into easing that burden. That is exactly why Austin and the State of Texas have built a set of down payment assistance programs to meet you halfway.
The Austin Down Payment Assistance Program, offered by the City of Austin’s Housing Department, helps make homeownership more accessible for eligible first-time homebuyers in low- to moderate-income households.
Think of these programs as quiet partners in the background. You still need decent credit, stable income, and a home that fits your budget. What you do not need is to scrape together every dollar of your down payment and closing costs on your own.
If you’re searching for homeownership help within city limits, the City of Austin’s DPA program is likely your first stop. It is designed for households that can afford the monthly payment but need help crossing that upfront hurdle.
For many buyers, that $40,000 can cover the entire minimum down payment plus a good chunk of closing costs, especially on modestly priced homes.
To qualify, you need to fit a fairly specific profile:
If you meet those criteria and are comfortable putting down roots for several years, Austin’s own program is one of the most generous options available.
If your dream home is in Pflugerville, Manor, unincorporated Travis County, or even in some pockets of Austin that do not fit the city program, the Hill Country Home Down Payment Assistance (DPA) Program from the Travis County Housing Finance Corporation is the next big tool to consider.
This program pairs a competitive 30-year fixed-rate first mortgage with a 0% interest second mortgage that covers your down payment and closing costs:
That percentage-based structure can be powerful for higher-priced homes, because the assistance scales with your loan size rather than being capped at a flat dollar amount.
The Travis County program has its own set of guardrails:
This program is not limited to first-time buyers. If you owned a home before and are ready to buy again in Travis County, this can be a flexible way to get help with the down payment.
Q: Can I combine Austin’s city program with TSAHC or TDHCA assistance?
A: In many cases, you can pair a city or county down payment program with a TSAHC or TDHCA first mortgage, but you cannot always stack multiple sources of down payment help on the same loan. Your lender will need to structure the file so the rules of each program are respected.
Q: Do these programs cover closing costs as well as the down payment?
A: Yes, most Austin-area programs explicitly allow assistance to be used for both down payment and closing costs, as long as the total help stays within that program’s dollar or percentage cap.
Q: What happens if I sell or refinance before the forgiveness period ends?
A: Typically, the remaining balance on your second lien or assistance amount becomes due, often on a prorated schedule. For example, the Austin city DPA and Hill Country Home program both use forgivable second mortgages, so the portion you have “earned” by staying in the home is forgiven, and only the rest needs to be repaid at sale or refinance.
Q: How do I know which program is the best fit for me?
A: A good starting filter is simple; (a) if you are a first-time buyer in Austin city limits with income under 80% MFI, look closely at the City of Austin DPA; (b) If you want options across Travis County or your income is a bit higher, the Hill Country Home DPA, TSAHC, or TDHCA programs may be more flexible.
Working with a mortgage professional who knows these programs well is usually the easiest way to align the right assistance with the home you actually want to buy.
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If Austin feels like the place you are meant to put down roots, you do not have to navigate these down payment assistance options on your own. A short conversation can save you a lot of second-guessing and missed opportunities.
Call (877) 280-4833 to talk with a mortgage professional who understands Austin’s programs, income limits, and local market. You can walk through your budget, see which assistance options you qualify for, and start shaping a plan that feels realistic instead of overwhelming. With the right guidance and the right program, that “someday” Austin home can turn into an actual address and a set of keys in your hand.
