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City of Austin (full-purpose city limits)

City of Austin Down Payment Assistance: up to $40,000

Austin Housing offers first-time buyers up to $40,000 toward a down payment, closing costs and prepaids on a single-family home or condo inside Austin city limits.

City of Austin Down Payment Assistance (DPA)

Taking applications

City of Austin (full-purpose city limits)

Meant for
First-time buyers (or no ownership in 3 years / displaced or divorced) buying a single-family home or condo
How much
Up to $40,000
Kind of help
Loan that is forgiven over time
Income cap
80% MFI ($106,800 for a family of 4)
Price cap
$440,000
First-timers only?
Yes
Fine print
Homebuyer education certificate; Housing-certified participating lender; covers down payment, closing costs and prepaids

Older city FAQ: under $15,000 is a 5-year forgivable loan; $15,000-$40,000 is shared-equity (10-year affordability, 30-year term). Austin city limits reach into Williamson and Hays counties.

Fact-checked November 2026 · our sources

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How the assistance is structured

The help is a forgivable loan that can cover the down payment, closing costs and prepaid items. An older city FAQ describes two tiers: under $15,000 is a 5-year forgivable loan, while $15,000 to $40,000 is shared equity with a 10-year affordability period and a 30-year term. Confirm the current structure with Austin Housing, since the shared-equity tier affects what you keep when you sell.

Who qualifies?

First-time buyers, which includes anyone without ownership in 3 years and buyers who were displaced or divorced. Income up to 80% of median family income, $106,800 for a family of four. Price up to $440,000. The home must be a single-family house or condo in Austin's full-purpose city limits, which reach into Travis, Williamson and Hays counties. You need a homebuyer education certificate and a lender certified by Austin Housing.

Using it with county and state help

Travis County's Hill Country Home program covers the county including Austin, and Homes for Texas Heroes and TDHCA serve the whole state. The city does not say whether its assistance combines with either; a participating lender confirms whether they combine. Buyers above 80% MFI may find Hill Country Home's 140% AMI limit a better match. The assistance types guide explains shared equity.

The definition of first-time buyer is broader here than in many programs. Someone displaced from a home or who owned a house only with a former spouse can still apply. Because the assistance can also cover prepaids, such as the first year of homeowner's insurance and tax escrow, it can reduce cash to close more than a down-payment-only program. On a $400,000 home, a full $40,000 would equal 10% of the price, which is a large share for the Austin market.

How to apply

Finish a homebuyer education course, pick an Austin Housing-certified lender, and get pre-approved within the $440,000 cap. Confirm the address is in full-purpose city limits, not just an Austin mailing address. Then check your eligibility for statewide help.

County guides for the area it serves: Travis County, Williamson County, Hays County.

Reader questions on City of Austin Down Payment Assistance (DPA)

How much is Austin down payment assistance?

Up to $40,000 toward the down payment, closing costs and prepaids.

What is the Austin DPA price limit?

$440,000.

Does Austin DPA work outside Travis County?

Yes, if the home is inside Austin's full-purpose city limits, which extend into Williamson and Hays counties.

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Programs worth comparing

Summed up from the program's official page as of November 2026. Money and rules change; check current terms with the program or a lender that takes part. Texas Down Payment Assistance has no tie to this program.