Austin Down Payment Assistance Program

What is Austin Down Payment Assistance Program?

Austin Down Payment Assistance Program is a forgivable loan for homebuyers in Austin, Texas.

• City of Austin program providing up to $40,000 as a 0% interest forgivable loan for down payment and closing costs. Loan is forgiven after 10 years of owner-occupancy (or 5 years for amounts under $15,000). Available to first-time homebuyers at or below 80% AMI purchasing within Austin city limits.
• Up to $40,000 forgivable loan for down payment, closing costs, and pre-paid expenses.
• 0% interest rate.
• no monthly payments.
• forgiven after 10 years of owner-occupancy (5 years for amounts under $15,000).
• available to households at or below 80% AMI.
• minimum $500 earnest money contribution required.
• Funding comes from Local Government.

How much assistance does it provide?

Austin Down Payment Assistance Program offers up to $40,000 in assistance.

• The program asks buyers to contribute $500.
• The program can be combined with other assistance, subject to the rules of each.
• Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

Austin Down Payment Assistance Program is forgiven after 10 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Sale, Refinance, and Transfer of Title.
• The assistance is recorded in 2nd Lien position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Austin Down Payment Assistance Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Austin Down Payment Assistance Program limits household income to 80% of the area median income, which varies by county and household size.

• 1 person: $55,400; 2 person: $63,300; 3 person: $71,200; 4 person: $78,750; 5 person: $85,100 (2025 limits).
• The limit applies to total household income, not only the borrower’s.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

Austin Down Payment Assistance Program caps the purchase price at $440,000.

• Eligible property types include Single Family and Condo.

Where does it apply?

Austin Down Payment Assistance Program serves buyers purchasing in Austin, Texas.

How do you apply?

Applications for Austin Down Payment Assistance Program go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program before funds are reserved.

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved with the provider and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.