Austin’s Down Payment Assistance Program

Austin’s Down Payment Assistance Program helps low-to-moderate income buyers purchase in the city of Austin with generous and flexible down payment assistance that can be used to make a larger down payment, cover closing costs, or a combination of both.

Eligibility requirements

To qualify for Austin’s Down Payment Assistance Program, you must meet the following eligibility requirements.

1. You must either: A) be purchasing your first home; B) have not owned a home in the past three years; or C) be recently displaced or divorced.
2. The home you’re buying must be within Austin city limits.
3. Your total household income must be at or below 80% of the area median income (AMI). 
4. Your total debts after closing cannot exceed 45% or your monthly income.
5. The final purchase price cannot be more than $614,054.70.

*For all DPA programs, income and purchase price limits are regularly reviewed and updated. These amounts were correct at publication but may change with time.

Type of loan

Austin’s Down Payment Assistance Program offers a zero-interest, deferred forgivable loan to help you with your down payment. 

If you live in the home for a period of between five and ten years (depending on the dollar amount of your assistance loan), you are eligible to have the loan fully forgiven, meaning you won’t have to pay any of it back. 

To qualify for forgiveness, you must consistently make your mortgage payments on time and remain in the home during the entire forgiveness period without selling, refinancing, or renting it out. 

Amount of down payment assistance

With this program, you can get assistance up to $40,000 or 30% of the home’s sale price, whichever is less. 

The money can be used for your down payment, closing costs, or both. You can decide how much of the money to spend on each of these expenses, depending on what makes the most sense for your finances. 

Minimum borrower contribution

You must contribute $1,000 of your own money toward your down payment. 

Purchase price limits

If you buy a home using funds from Austin’s Down Payment Assistance Program, the final sale price can’t be more than $614,054.70. 

That being said, your household income might limit your purchase price further, because your total debts after closing can’t be more than 45% of your income. But the current median home price in Austin is $543,380, so there are definitely homes in the area priced below the program’s cap. 

Income limits

The income limit for this down payment assistance program is 80% of the area median income (AMI). 80% AMI for Austin is currently between $65,450 and $100,950, depending on the size of your household.

Program income limits are regularly evaluated and adjusted to match housing market and economic factors. To find out if your income meets the current limits for this program, use our free down payment assistance finder.

How to qualify for Austin’s Down Payment Assistance Program

To be eligible for this down payment assistance program, you must meet the requirements we laid out in the article above. Use our free down payment assistance finder to see out if you qualify.

How to apply for Austin’s Down Payment Assistance Program

To sign up for Austin’s Down Payment Assistance Program, you need to apply through a lender on the city’s approved lender list. The City of Austin doesn’t take applications directly. Use our free down payment assistance finder to locate an approved and qualified lender who can help you apply.