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Austin Habitat New Home Construction Program

Austin, Texas

Last verified
See what you qualify forOfficial program site →
Income limit

80% AMI

Of area median income; varies by county and household size

Price cap

$260,000

Highest purchase price the program allows

Repayment

Deferred

No payments until the home is sold or refinanced

What is Austin Habitat New Home Construction Program?

Austin Habitat New Home Construction Program is a deferred second loan for homebuyers in Austin, Texas.

  • Austin Habitat for Humanity 30-year zero-interest first mortgage on a newly constructed Habitat home in Austin or Travis County. Sweat equity (300 hours/adult) required. 30-80% MFI; 620 FICO; mandatory homebuyer education. Max sale price approximately $260,000.
  • Austin Habitat for Humanity New Home Construction Program offers qualified low-to-moderate income families the opportunity to purchase a newly constructed home in Austin or Travis County at below-market price with a 30-year zero-interest amortizing first mortgage held by Austin Habitat. Sweat equity required (300 hours per adult applicant). Maximum home sale price approximately $260,000 (Habitat-built single-family). The implicit subsidy from below-market pricing combined with 0% interest functions as a substantial DPA. Mandatory homebuyer education and financial fitness program required.
  • Funding comes from Private.

Do you have to pay it back?

Austin Habitat New Home Construction Program is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

  • Repayment is triggered by 30-year amortizing first mortgage at 0% interest. Sale, transfer, refinance, or vacating triggers Habitat's right of first refusal and shared-equity recapture provisions.
  • The assistance is recorded in 1st 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 Habitat New Home Construction Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

The program requires

  • First-time homebuyer — with exceptions: First-time homebuyer required (no ownership in past 3 years). Exceptions for displaced homemakers, veterans, and individuals fleeing domestic violence.
  • The home is occupied as a primary residence
  • On credit: 620 minimum FICO; bankruptcy must be discharged 2+ years; no recent collections.
  • A completed homebuyer education course, through Austin Habitat for Humanity homebuyer education program (mandatory). HUD-approved counseling available through Frameworks CDC, Foundation Communities, and other Austin-area providers.
  • Residency: Property must be a Habitat-built home in Austin or Travis County, occupied by buyer as primary residence.
  • Citizenship or immigration status: U.S. citizen or lawful permanent resident.
  • Applicant must demonstrate need for affordable housing (current housing inadequate, unaffordable, or unsafe). Income at 30-80% MFI for Austin MSA. Willingness to partner: 300 sweat-equity hours per adult applicant (construction site or qualifying volunteer alternative). Ability to pay: 28-43% housing DTI on Habitat's 0% first mortgage. 620 FICO minimum. Mandatory completion of homebuyer education. Property is a Habitat-built new home in Austin or Travis County. Buyer must occupy as primary residence; sale/transfer subject to Habitat right of first refusal and shared-equity recapture.

The program excludes

  • Manufactured homes
  • Purchases above the $260,000 price cap
  • Households above 80% of area median income

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

Austin Habitat New Home Construction Program limits household income to 80% of the area median income, which varies by county and household size.

  • 30-80% MFI for Austin-Round Rock-Georgetown MSA per HUD; 1-person $68,500 / 4-person $97,800 / 8-person $129,100 (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 Habitat New Home Construction Program caps the purchase price at $260,000.

  • Eligible property types include Newly constructed single-family detached homes built by Austin Habitat for Humanity.
  • New construction is eligible.
  • Manufactured homes are not eligible.

Where does it apply?

Austin Habitat New Home Construction Program serves buyers purchasing in Austin, Texas.

How do you apply?

Applications for Austin Habitat New Home Construction Program go through the administering agency, which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program, through Austin Habitat for Humanity homebuyer education program (mandatory). HUD-approved counseling available through Frameworks CDC, Foundation Communities, and other Austin-area providers..

  2. Contact the administering agency to reserve funds

    Funds are reserved through Apply directly to Austin Habitat through application cycles announced at austinhabitat.org. Selection committee reviews applications based on need, willingness to partner, and ability to pay., and are subject to availability.

  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.

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