Down Payment Assistance Program

0%-interest loans for eligible first-time homebuyers to buy a home within Austin City Limits. 
What Does the Down Payment Assistance Program Cover?
  • Down payment and closing costs, and pre-paid expenses associated with buying a home
  • Homebuyers may qualify for up to $40,000 in assistance

Sales and/or appraisal price of the home cannot exceed $295,000

Who is Eligible? 

First-time homebuyers who:

  • Have not owned a home in the last three years, or  have been displaced or divorced
  • Are buying a single-family home or condominium within Austin’s Full Purpose city limits.  If you are not sure, go to the City of Austin Jurisdictions Web Map to check. 
  • Make a low-income which is defined as at or below 80% Median Family Income (MFI). The table below shows the income limits by the number of persons living in the home. 

What is Needed to Apply?
  • Confirm that the property is within Austin City Limits
  • Homebuyer Education Course official Certificate of Completion
  • Be approved for a mortgage loan from a Participating Lender. The loan officer will assist in filling out and submit the Down Payment Assistance application
  • Documentation needed for the application includes:
    • Identification:
      • Social Security card
      • Picture Identification: Texas Driver’s license, Texas Permanent ID Card, or Passport
      • Permanent Residency Card (if applicable)
    • Verification of Income:
      • Last 2 consecutive months paycheck stubs from all household members, 18+ years old
      • Most recent 2 Years W-2 Forms or 1099’s
      • Most recent 2 Years Federal Tax Returns
      • If self-employed last quarter’s Profit & Loss Statement & 2 years Tax Returns
      • Verification of other income
    • Most recent 6 Months Checking Account Statements and 6 months Savings for all accounts for all household members
    • Verification of Assets
 
Once eligible first-time homebuyers have made sure that they have all that is needed to apply, their registered trained loan officers must submit the  DPA Application
Down Payment Assistance Loan Officer Training
To be a Participating Lender loan officers must attend Housing & Planning's training. Future Down Payment Assistance Lender Training can be provided on request to groups of five or more. For more information, call 512-974-3100 or email HPDCS@austintexas.gov.

 


 

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