Down Payment Assistance in Austin and Travis County (2026)

Last Updated: April 2026

TL;DR: Yes, Austin-area buyers may still be able to get real help with upfront costs in 2026. The City of Austin offers up to $40,000 for eligible first-time buyers, while TSAHC and TDHCA offer statewide down payment assistance, low-interest loans, and tax-credit options through participating lenders.

Key Takeaways

• The City of Austin says eligible first-time buyers may qualify for up to $40,000 for down payment, closing costs, and prepaid expenses.
• Austin's city program currently has a $440,000 maximum sales price and is generally limited to households at or below 80% of median family income.
• TSAHC says many Austin and Central Texas buyers can start with a 620 credit score, and assistance may come as a grant or a forgivable second lien.
• TDHCA offers My First Texas Home for first-time buyers and My Choice Texas Home for repeat or move-up buyers.
• According to Sully Ruiz, licensed Texas REALTOR® with Sully Realty Group, buyers who prepare early often reduce their cash-to-close more successfully than buyers who wait until they are already under contract.

Table of Contents

• What down payment assistance programs are available in Austin and Travis County in 2026?
• How does Austin's city down payment assistance program work?
• What statewide options can Austin and Travis County buyers use?
• How much money can these programs actually save you?
• Which program is best for your situation?
• What does the application process look like?
• FAQ

Photo by Justin Wallace on Unsplash

For many buyers in Austin and Travis County, the hardest part of buying a home is not qualifying for a monthly payment. It is finding enough cash for the down payment, closing costs, prepaid taxes, insurance, inspections, and the rest of the cash-to-close number.

That is why down payment assistance matters so much in 2026. According to Sully Ruiz, a licensed Texas REALTOR® (TREC #0742907) with Sully Realty Group who has helped buyers access up to $30K in grant support, many first-time buyers do not realize they may have both local and statewide options. Some programs are stricter but more generous. Others are broader and easier to use when the local rules do not fit.

If you want help figuring out where you fit, start with Sully's buyer readiness screening. If you want a personalized plan, you can also book a free consultation.

What down payment assistance programs are available in Austin and Travis County in 2026?

Austin and Travis County buyers usually have three practical categories to compare in 2026: the City of Austin down payment assistance program for qualifying first-time buyers inside Austin city limits, TSAHC statewide assistance programs, and TDHCA statewide mortgage and down payment assistance programs. According to Sully Ruiz, licensed Texas REALTOR® with Sully Realty Group, most buyers should compare all three before choosing a lender path.

The City of Austin program is usually the headline option because the city says eligible buyers may receive up to $40,000 for down payment, closing costs, and prepaid expenses. But it is also the most restrictive. Buyers generally must be first-time homebuyers, meet income limits, and buy a qualifying property within Austin's full-purpose city limits.

Statewide programs through TSAHC and TDHCA are often the better fit when the property is outside Austin's local boundaries, the buyer is not strictly first-time, or the household does not fit the city's rules. These options still require participating lenders, income review, and homebuyer education, but they often give buyers more flexibility.

Program	Who it fits	Main benefit	Important limits
City of Austin DPA	First-time, income-eligible buyers in Austin city limits	Up to $40,000 for down payment, closing costs, and prepaids	Must buy in Austin full-purpose limits, sales price max $440,000, income limits apply
TSAHC Home Sweet Texas / Texas Heroes	Buyers using participating lenders statewide	DPA as grant or forgivable second lien, possible MCC option	620 credit score floor, lender and income rules apply
TDHCA My First Texas Home	First-time buyers, with some exceptions	DPA plus 30-year low-interest mortgage	Program guidelines and participating lender rules apply
TDHCA My Choice Texas Home	Repeat or move-up buyers	DPA plus 30-year low-interest mortgage	Program and lender rules still apply

For related planning, see Sully's guides to down payment assistance programs in Texas, understanding closing costs in Texas, and getting pre-approved in Austin.

How does Austin's city down payment assistance program work?

The City of Austin's program is designed for income-eligible first-time homebuyers who need help covering upfront costs, and the city says qualified buyers may receive up to $40,000 toward down payment, closing costs, and prepaid expenses. According to Sully Ruiz, licensed Texas REALTOR® with Sully Realty Group, this can be a strong option when the address, income, and price point line up from day one.

Austin's housing page says buyers generally must be first-time homebuyers, meaning they have not owned a home in the last three years, though some displaced or divorced buyers may also qualify. The property must be a single-family home or condominium within Austin's full-purpose city limits, and the current maximum sales price is $440,000.

Austin also publishes example income caps at or below 80% median family income:

Household size	Maximum income
1 person	$72,950
2 people	$83,400
3 people	$93,800
4 people	$104,200
5 people	$112,550

The city also requires homebuyer education and a participating lender. Austin's homebuyer resources page lists Frameworks CDC and BCL of Texas among its education partners and notes a $99 course cost plus the required handbook purchase. The participating loan officer helps submit the application package, which is why buyers should not wait until the last minute.

Photo by IGOR LOLATTO on Unsplash

What statewide options can Austin and Travis County buyers use?

If you do not fit Austin's local rules, or you want a broader lender network, TSAHC and TDHCA are the two statewide options to review first. According to Sully Ruiz, licensed Texas REALTOR® with Sully Realty Group, these programs are often the best fallback when the city cap, map, or income limits do not work for the home a buyer wants.

TSAHC says its Austin and Central Texas assistance programs are available through participating lenders and require at least a 620 credit score. Buyers may use the Home Sweet Texas Home Loan Program or, if they are in an eligible profession, the Homes for Texas Heroes program. TSAHC says down payment assistance may be taken as either a grant that does not need to be repaid or a deferred forgivable second lien that is only repaid if the buyer sells or refinances within three years.

TSAHC also says first-time buyers may be able to add a Mortgage Credit Certificate, or MCC. According to TSAHC, an MCC can reduce federal income taxes by giving qualifying buyers a tax credit equal to 15% of the mortgage interest they paid for the year. TSAHC notes that its stand-alone MCC option is discontinued indefinitely, but MCCs may still be available when paired with a DPA loan, subject to funding.

TDHCA's current program page says buyers should know two names. My First Texas Home is for first-time homebuyers, with some exceptions for targeted areas and qualified veterans. My Choice Texas Home is the more flexible option for buyers who are not first-time purchasers. TDHCA says both programs offer down payment assistance and 30-year low-interest mortgage rates, and approved homebuyer education is required to qualify for assistance.

How much money can these programs actually save you?

The real benefit of down payment assistance is that it can move a buyer's timeline forward by months or even years. According to Sully Ruiz, licensed Texas REALTOR® with Sully Realty Group, many Austin buyers can afford the monthly payment before they can afford the cash to close.

Here is a simple example for a buyer purchasing a $350,000 home:

Cost item	Without assistance	With $15,000 help	With $40,000 help
3.5% down payment	$12,250	$12,250	$12,250
Estimated closing costs and prepaids	$10,500	$10,500	$10,500
Total cash needed before credits	$22,750	$22,750	$22,750
Assistance applied	$0	-$15,000	-$22,750 max usable in this example
Buyer cash still needed	$22,750	$7,750	$0 to minimal, depending on program rules

The exact savings depend on whether the help is a grant, a forgivable lien, or a program with occupancy rules. Assistance also does not replace every cost. Buyers still need to think about inspections, moving expenses, earnest money, and sometimes reserve requirements.

Which program is best for your situation?

The best program depends on where you want to buy, your household income, whether you are a first-time buyer, and how flexible you need the property search to be. According to Sully Ruiz, licensed Texas REALTOR® with Sully Realty Group, the wrong move is picking a program only because the headline amount sounds attractive.

Buyer situation	Best first option to check	Why
First-time buyer purchasing within Austin city limits under $440,000 and within income limits	City of Austin DPA	Potentially the largest local assistance amount
Buyer outside Austin full-purpose city limits but still in Travis County or Central Texas	TSAHC or TDHCA	Wider geographic flexibility
Repeat buyer who does not qualify as first-time	TDHCA My Choice Texas Home	Built for non-first-time buyers
Teacher, firefighter, police officer, veteran, EMS, or similar eligible profession	TSAHC Homes for Texas Heroes	Profession-based statewide path
Buyer who wants annual tax savings in addition to DPA	TSAHC plus eligible MCC path	Possible extra federal tax benefit

In practice, the best answer usually comes after comparing the home address, your income, your credit profile, and the participating lender list together. That is why buyers who prepare early often move faster once the right house appears.

Photo by Genuine Texas Exteriors on Unsplash

What does the application process look like?

Most Austin and Travis County assistance paths follow the same order: check eligibility, complete education, choose a participating lender, get pre-approved, and then shop for homes that fit the program. According to Sully Ruiz, licensed Texas REALTOR® with Sully Realty Group, buyers save time when they treat assistance as part of pre-approval instead of something to figure out later.

A practical process looks like this:

1. Check the map and price rules. If you want Austin's local program, confirm the home is inside Austin's full-purpose city limits and under the current price cap.
2. Complete homebuyer education. Austin, TSAHC, and TDHCA all require or strongly depend on approved education.
3. Choose a participating lender early. Not every lender offers every program.
4. Gather documents. Income records, tax returns, bank statements, ID, and household information are usually needed.
5. Get pre-approved with the program in mind. A regular pre-approval is not enough if the home will not fit the assistance rules.
6. Shop for qualifying homes. Watch city limits, condo rules, price caps, and contract timing.
7. Keep your file stable until closing. Avoid major new debt, unexplained deposits, or job changes.

FAQ

Can first-time homebuyers in Austin still get up to $40,000 in 2026?

Yes. The City of Austin's housing page currently says eligible first-time homebuyers may qualify for up to $40,000 in assistance for down payment, closing costs, and prepaid expenses, subject to funding availability and program rules.

Does the Austin city program work anywhere in Travis County?

No. Austin's local program is tied to homes in Austin's full-purpose city limits, not every property with an Austin mailing address and not every property in Travis County.

What credit score do you need for TSAHC assistance?

TSAHC's Austin and Central Texas assistance page says buyers need a 620 credit score and must meet certain income requirements. Participating lenders may still add their own overlays.

Can repeat buyers get down payment assistance in Austin or Travis County?

Yes, sometimes. TDHCA says its My Choice Texas Home program is available for buyers who are not first-time homebuyers, while Austin's local city program is generally for first-time buyers.

Is down payment assistance always free money?

No. Some assistance is a grant, while some is a forgivable or deferred second lien. Buyers should always ask how repayment works before closing.

What should buyers do first?

According to Sully Ruiz, buyers should start with a participating lender and a REALTOR® before they start touring homes, so the property search matches the actual assistance rules.

Ready to see which program fits you best? Start with Sully's buyer readiness screening or book a free consultation with Sully Realty Group.

About the Author Sully Ruiz is a licensed Texas REALTOR® (TREC #0742907) with Sully Realty Group / Keller Williams Austin NW. A bilingual real estate professional serving the Austin metro, Sully has helped 46+ families purchase homes using ITIN loans and has secured up to $30K in grants for qualifying buyers. She is a member of NAR, Texas REALTORS®, ABOR, and NAHREP. Book a free consultation →

Market data is for informational purposes only and is subject to change. Sources are believed to be reliable but are not guaranteed. Contact Sully Ruiz for a personalized market analysis.

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Sources

• City of Austin Housing, Homebuyer Resources — accessed April 2026
• City of Austin Housing, Homebuyer & Homeowner Resources — accessed April 2026
• TSAHC, Austin / Central Texas Home Down Payment Assistance — accessed April 2026
• TSAHC, Home Sweet Texas Home Loan Program — accessed April 2026
• TSAHC, Mortgage Credit Certificates — accessed April 2026
• TDHCA Homebuyer Program, Programs — accessed April 2026