Austin Down Payment Assistance 2026: Up to $40,000 City DPA + TSAHC & TDHCA

Austin Down Payment Assistance Programs (2026): Up to $40,000 From the City, Plus State Options

The City of Austin's Down Payment Assistance program can provide up to $40,000 toward the down payment and closing costs for income-eligible buyers purchasing inside Austin's Full Purpose city limits, on homes priced up to $440,000.

If you earn too much for the City program, or you're buying in Round Rock, Pflugerville, Cedar Park, Kyle, or elsewhere in Central Texas, the statewide TSAHC and TDHCA programs are usually the better fit.

Austin DPA options at a glance

Program	Assistance	Who it fits
City of Austin Down Payment Assistance	Up to $40,000 for down payment and closing costs, including prepaids	Buyers at or below 80% MFI purchasing inside Austin Full Purpose city limits, price up to $440,000
TSAHC Home Sweet Texas / Homes for Texas Heroes	Grant, or deferred second lien forgiven after 3 years	Buyers across Central Texas with a 620+ credit score. Heroes covers teachers, police, firefighters, veterans, and more.
TDHCA My First Texas Home / My Choice Texas Home	Up to 5% of the loan as a 0% deferred second loan	Buyers statewide who meet income and price limits
Austin Community Land Trust	Lower price because you lease the land for a small monthly fee	Low- and moderate-income buyers who accept resale limits

Program details as published by the City of Austin and TSAHC as of September 2026. Funding and limits change, so confirm availability before you write an offer.

City of Austin Down Payment Assistance: who qualifies

You're a first-time buyer, haven't owned a home in the last three years, or have been displaced or divorced.

You're buying a single-family home or condo inside Austin's Full Purpose city limits. An Austin mailing address isn't enough, so check the City's jurisdiction map.

Household income is at or below 80% of Median Family Income.

The sales price is $440,000 or less.

You complete a homebuyer education course and get a certificate.

Your first mortgage comes from one of the City's participating lenders.

Household size	Maximum income (80% MFI)
1 person	$74,800
2 people	$85,450
3 people	$96,150
4 people	$106,800
5 people	$115,350

Income limits as listed on the City of Austin homebuyer page. The City adjusts them when HUD publishes new figures.

City program or state program?

The City program is bigger, but narrower

Up to $40,000 goes a long way, but the 80% MFI income cap, the $440,000 price cap, and the city-limits rule rule out many Austin buyers.

State programs reach more buyers

TSAHC and TDHCA work across Travis, Williamson, and Hays counties, and often have higher income limits. Assistance is usually a percentage of the loan rather than a flat amount.

Watch the rate trade-off

Some state assistance comes with a slightly higher interest rate. On a longer hold, a smaller grant with a lower rate can cost less overall.

Let's compare your numbers

I'll price your purchase with state assistance and without it, and tell you whether you look eligible for the City program so you can go to a participating lender.

Austin down payment assistance FAQ

How much down payment assistance can I get in Austin?

The City of Austin program offers up to $40,000 for eligible buyers. The state programs typically offer a percentage of the loan amount, often up to 5%.

What is the price limit for Austin DPA?

The City program caps the sales price at $440,000.

Can I use Austin DPA in Round Rock or Pflugerville?

Not the City program. It requires Austin Full Purpose city limits. TSAHC and TDHCA programs can work in those suburbs.

Do I need homebuyer education?

Yes. Both the City program and the state programs require an approved homebuyer education course before closing.