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.

Austin Down Payment Assistance Program offers up to $40,000 in assistance. The program asks homebuyers 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.

Austin Down Payment Assistance Program is forgiven after 10 years, so a homebuyer 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.

Austin Down Payment Assistance Program is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: Not owned home in last 3 years; displaced homemakers or single parents may qualify regardless. A homebuyer education course is required. Must purchase within Austin city limits (Full Purpose jurisdiction). First-time homebuyer required (not owned in last 3 years; displaced homemakers/single parents exempt). Minimum $500 earnest money contribution required. HUD-approved homebuyer education certificate required prior to closing. Property must be single-family home or condominium.

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.

Austin Down Payment Assistance Program caps the purchase price at $440,000. Eligible property types include Single Family and Condo.

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

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