Down Payment Assistance in Austin and Travis County (2026): Programs, Limits and How to Apply

For many Austin and Travis County buyers, the hardest part of buying a home in 2026 is not the monthly payment — it is the cash needed up front: the down payment, closing costs, and prepaid taxes and insurance. Down payment assistance (DPA) can shrink that number, and in Austin and Travis County there are more options than most buyers realize: one city program and two statewide programs that work here.

TL;DR: Austin and Travis County buyers can compare three main sources of down payment assistance in 2026: the City of Austin program (up to $40,000 for eligible first-time buyers, per the City of Austin, accessed October 2026), plus the statewide TSAHC and TDHCA programs. Eligibility is decided by each program and its participating lenders, case by case, in writing. This guide compares all three so you know which door to knock on first.

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:

• City of Austin Down Payment Assistance — a local program for income-eligible first-time buyers purchasing within Austin's full-purpose city limits.
• TSAHC (Texas State Affordable Housing Corporation) — a statewide nonprofit created by the Texas Legislature whose Home Sweet Texas and Homes for Texas Heroes programs include down payment assistance.
• TDHCA (Texas Department of Housing and Community Affairs) — the state agency behind My First Texas Home and My Choice Texas Home.

Each program has its own income limits, property rules, and participating-lender list, so the practical first step is comparing all three against your specific address, household size, and price range. A real estate agent can help you rule out programs early — for example, when a home sits outside Austin's full-purpose limits — but the numbers on eligibility come from the program and the lender, in writing.

One point worth making up front: assistance amounts and program rules change with funding cycles, and this is an active area for budget decisions at the city and state level. Everything below was verified against each program's own published pages in October 2026, and each figure names its owner. Before you rely on any of it, confirm the current terms with the program or a participating lender, because a blog post is not an eligibility decision.

How does the City of Austin down payment assistance program work?

The City of Austin program is usually the headline option, because it covers more of the upfront costs than the statewide programs. Here is what the city's own Homebuyer Resources page currently says (City of Austin Housing, accessed October 2026):

• The program covers down payment, closing costs, and prepaid expenses, and income-eligible first-time homebuyers may qualify for up to $40,000 in assistance (City of Austin Housing, accessed October 2026).
• The sales price of the home cannot exceed $440,000 (City of Austin Housing, accessed October 2026).
• Buyers must complete a homebuyer education class before qualifying, and the homebuyer education course costs $99 plus the required handbook (City of Austin Housing, accessed October 2026).
• The home must be a single-family home or condominium within Austin's full-purpose city limits — not every property with an Austin mailing address qualifies (City of Austin Housing, accessed October 2026).

Who is eligible, per the city's page (accessed October 2026)? The program defines its eligible buyer as a first-time homebuyer — someone who has not owned a home in the last three years — or a buyer who has been displaced or divorced, purchasing a single-family home or condominium in Austin's full-purpose city limits. The household must be at or below 80% of Median Family Income (MFI). Whether an individual buyer meets those criteria is decided by the city and the participating lender, case by case, in writing. The city publishes example maximum-income figures by household size (City of Austin Housing, accessed October 2026):

Household size	Maximum income (City of Austin, accessed October 2026)
1 person	$74,800 (City of Austin, accessed October 2026)
2 people	$85,450 (City of Austin, accessed October 2026)
3 people	$96,150 (City of Austin, accessed October 2026)
4 people	$106,800 (City of Austin, accessed October 2026)
5 people	$115,350 (City of Austin, accessed October 2026)

The application itself runs through a participating lender. The city maintains a DPA participating lender list — currently including CMG Home Loans, American Bank, First Community Mortgage, Guardian Mortgage, Guild Mortgage, Newrez, and Republic Mortgage (City of Austin Housing, accessed October 2026) — and your registered, trained loan officer helps submit the application package. The city's document checklist includes identification, verification of income (paycheck stubs, W-2s or 1099s, and for self-employed buyers a quarterly profit-and-loss statement and two years of tax returns), and verification of assets (City of Austin Housing, accessed October 2026).

Homebuyer education comes from HUD-approved nonprofit partners. The city currently lists Frameworks Community Development Corporation and Business & Community Lenders (BCL) of Texas as education partners, and completing the course produces an official Certificate of Completion (City of Austin Housing, accessed October 2026).

In practice, the Austin program is the most generous but also the most restrictive. If the home you want is outside the full-purpose city limits — much of Pflugerville, Round Rock, Cedar Park, Kyle, and Buda, for example — the city program does not apply, and you move to the statewide options. Conversely, if you are a first-time buyer looking inside Austin at a price under $440,000, per the city's current cap (City of Austin Housing, accessed October 2026), and your household fits the income table, the city program is usually the first one to explore with a participating lender.

What statewide options can Austin and Travis County buyers use?

If the property is outside Austin's full-purpose city limits, or your household does not fit the city's income or first-time-buyer rules, two statewide programs still work in Travis County and across Central Texas.

TSAHC: Home Sweet Texas and Homes for Texas Heroes

The Texas State Affordable Housing Corporation is a nonprofit created by the Texas Legislature, and its Austin/Central Texas resource page says buyers must have a 620 credit score on government loans and a 640 minimum on conventional loans, and meet certain income requirements that vary by county and household size (TSAHC, accessed October 2026). Its programs:

• Home Sweet Texas Home Loan Program — TSAHC says eligible buyers receive a fixed-rate mortgage along with down payment assistance of up to 5% of the loan amount to help cover the down payment and closing costs (TSAHC, accessed October 2026).
• Homes for Texas Heroes — the same assistance structure for eligible professions: professional educators (including public school teachers, teacher aides, librarians, counselors, and nurses), police and public security officers, firefighters, EMS personnel, veterans or active military, correction officers, and nursing and allied health faculty (TSAHC, accessed October 2026).

The TSAHC assistance structure matters more than the headline percentage. TSAHC says the assistance comes either as a grant that never has to be repaid, or as a forgivable second lien that is completely forgiven after three years, provided the buyer does not sell, refinance, or move out of the home during that time (TSAHC, accessed October 2026). Buyers apply through TSAHC-approved participating lenders, complete an approved homebuyer education course, and — if they are first-time buyers — may also be able to pair the loan with a Mortgage Credit Certificate, which TSAHC describes as a federal income tax credit equal to 15% of the mortgage interest paid annually (TSAHC, accessed October 2026).

Note the difference from the city program: TSAHC's first-time-buyer rule is flexible. The TSAHC page says some borrowers may qualify even if they have owned a home before, with program options and targeted areas carrying different requirements (TSAHC, accessed October 2026). And unlike the Austin program, the TSAHC income ceiling for moderate-income households is described as up to 150% to 170% of the area median income, versus the city's 80% MFI ceiling — which is why many households above the Austin table still have a statewide option (TSAHC, accessed October 2026).

TDHCA: My First Texas Home and My Choice Texas Home

The Texas Department of Housing and Community Affairs runs its programs through what it brands The Texas Homebuyers Program, currently under the "Welcome Home" umbrella (TDHCA, accessed October 2026):

• My First Texas Home offers down payment assistance and 30-year, low-interest mortgage rates for first-time homebuyers, with certain exceptions to the first-time requirement available in targeted areas and to qualified veterans (TDHCA, accessed October 2026).
• My Choice Texas Home offers the same structure — down payment assistance and a 30-year, low-interest mortgage — and buyers do not have to be first-time homebuyers to qualify (TDHCA, accessed October 2026).
• Completing an approved homebuyer education course is required to qualify for assistance through the TDHCA Homebuyer Program (TDHCA, accessed October 2026).
• TDHCA also offers a Mortgage Credit Certificate it describes as a dollar-for-dollar reduction on federal tax liability, available to veterans and first-time homebuyers with a first mortgage through the program, with no minimum credit score requirement on the stand-alone option and limited supplies (TDHCA, accessed October 2026).

TDHCA also advertises gift funds available in eligible counties, which can matter for buyers whose gap is smaller than a full second lien would cover (TDHCA, accessed October 2026). Like TSAHC, TDHCA applications run through participating lenders, not directly to the agency.

How much money can these programs actually save you?

The honest answer is: it depends on the program, the loan amount, and how the assistance is structured — grant, forgivable lien, or deferred loan. What assistance does is reduce the cash you need to close, up to each program's limit and rules. Your participating lender shows the exact amount line by line on your Loan Estimate and Closing Disclosure, which is why a written pre-approval is the concrete first step.

A few comparisons that are safe to make from the published numbers, each with its owner:

• The City of Austin program covers down payment, closing costs, and prepaid expenses up to $40,000 for income-eligible first-time buyers (City of Austin Housing, accessed October 2026).
• TSAHC Home Sweet Texas assistance reaches up to 5% of the loan amount as a grant or three-year forgivable second lien (TSAHC, accessed October 2026).
• TDHCA pairs DPA with a 30-year low-interest mortgage in both its programs (TDHCA, accessed October 2026).

What assistance does not do is replace every cost of buying. Buyers still plan for the home inspection, the option fee, earnest money, moving expenses, and sometimes lender reserve requirements. And because some assistance is a lien rather than a grant, the repayment and forgiveness terms belong in your questions to the lender before you close — not after.

Which program is best for your situation?

No program is "best" in the abstract — the right first door depends on where the home is, your household income, and whether you are a first-time buyer. Here is how the decision usually sorts in practice:

Buyer situation	First option to check	Why
First-time buyer, home inside Austin full-purpose limits, price under $440,000, income within the city's 80% MFI table	City of Austin DPA (limits per City of Austin, accessed October 2026)	Largest local assistance amount
Home outside Austin full-purpose limits (Round Rock, Cedar Park, Pflugerville, Kyle, Buda, most of Travis County)	TSAHC or TDHCA	Wider geographic reach statewide
Household income above 80% MFI	TSAHC or TDHCA	TSAHC describes moderate-income ceilings up to 150% to 170% of area median income (TSAHC, accessed October 2026)
Repeat buyer who does not qualify as first-time	TDHCA My Choice Texas Home	TDHCA says buyers do not have to be first-time homebuyers to qualify (TDHCA, accessed October 2026)
Teacher, firefighter, police officer, veteran, EMS, or other eligible profession	TSAHC Homes for Texas Heroes	Profession-based statewide path (TSAHC, accessed October 2026)
Buyer wanting annual tax savings on top of DPA	TSAHC or TDHCA Mortgage Credit Certificate	TSAHC describes the MCC as a federal income tax credit equal to 15% of mortgage interest paid annually (TSAHC, accessed October 2026)

One practical point from the transaction side: the program choice affects the property search itself. A buyer working the city program needs homes inside the full-purpose limits under the price cap; a buyer on a statewide program has more map freedom. Knowing which door you are walking through before you start touring homes saves weeks — which is a real estate process point, not an eligibility point. The eligibility answer comes from the program and the participating lender, in writing, case by case.

What does the application process look like?

Most Austin and Travis County assistance paths follow the same order:

1. Check the map and price rules first. For the Austin program, confirm the home is inside the full-purpose city limits and under the current price cap before falling in love with it. The city publishes a jurisdictions web map for exactly this purpose (City of Austin Housing, accessed October 2026).
2. Complete homebuyer education. All three programs require it, and each publishes its own list of approved providers. Budget the course cost — the Austin program's course costs $99 plus the handbook (City of Austin Housing, accessed October 2026).
3. Choose a participating lender early. Not every lender offers every program. The city keeps a participating lender list for its program, and TSAHC and TDHCA each maintain their own networks (City of Austin, TSAHC, and TDHCA, accessed October 2026).
4. Gather documents. Identification, income verification (pay stubs, W-2s or 1099s, self-employed profit-and-loss and returns), and asset statements are standard across programs (City of Austin Housing, accessed October 2026).
5. Get pre-approved with the program in mind. A pre-approval that ignores the assistance rules is a pre-approval the program may not accept. Ask the lender to confirm, in writing, which programs your file fits.
6. Shop for qualifying homes. Watch city limits, condo rules, and price caps as you search.
7. Keep your file stable until closing. New debt, unexplained deposits, or job changes can restart underwriting — a lender question, and a good reason to keep the lender's guidance in writing.

FAQ

Can first-time homebuyers in Austin still get up to $40,000 in 2026, per the City of Austin (accessed October 2026)?

Yes, per the program's own page: the City of Austin says income-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 (City of Austin Housing, accessed October 2026). Eligibility is decided by the city and the participating lender, case by case, in writing.

Does the Austin city program work anywhere in Travis County?

No. The program is tied to single-family homes and condominiums within Austin's full-purpose city limits, not to Austin mailing addresses and not to the whole county (City of Austin Housing, accessed October 2026). Homes in much of Pflugerville, Round Rock, and other parts of the metro fall outside those boundaries.

What credit score do you need for TSAHC assistance?

TSAHC's Austin and Central Texas page says buyers need a 620 credit score on government loans and a 640 minimum on conventional loans, plus certain income requirements (TSAHC, accessed October 2026). Participating lenders may add their own requirements, and the decision is theirs, in writing.

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

Sometimes. TDHCA says its My Choice Texas Home program offers down payment assistance and buyers do not have to be first-time homebuyers to qualify (TDHCA, accessed October 2026), and TSAHC says some borrowers may qualify even if they have owned a home before (TSAHC, accessed October 2026). Austin's local program is generally for first-time buyers.

Is down payment assistance always free money?

No, and this is the question to ask every lender in writing. TSAHC, for example, offers assistance either as a grant that never has to be repaid or as a forgivable second lien forgiven after three years if you do not sell, refinance, or move out (TSAHC, accessed October 2026). The Austin program's assistance structure and its repayment or forgiveness terms should be confirmed with the city and the lender before closing.

What should buyers do first?

Start with the map and income rules to narrow the field, then contact a participating lender for a written pre-approval that names the program your file fits. A real estate agent can help you search within the program's boundaries so the home you tour is a home the program accepts — as your agent, not as your lender. Want a hand sorting out which door to knock on first? Book a free consultation →

Key takeaways

• Austin and Travis County buyers have three programs to compare: the City of Austin DPA, TSAHC, and TDHCA.
• The City of Austin program offers up to $40,000 for income-eligible first-time buyers, with a $440,000 sales-price cap and an 80% MFI income ceiling (City of Austin Housing, accessed October 2026).
• TSAHC offers DPA up to 5% of the loan amount as a grant or three-year forgivable second lien, with a 620 credit score floor on government loans (TSAHC, accessed October 2026).
• TDHCA serves both first-time and repeat buyers through My First Texas Home and My Choice Texas Home (TDHCA, accessed October 2026).
• Every program requires homebuyer education and a participating lender; eligibility is decided by the program and lender, in writing, case by case.

About the Author

Sully Ruiz is a Texas-licensed real estate agent (TREC #0742907). Her sponsoring broker is Keller Williams Austin NW. She works with buyers and sellers in Austin and Central Texas, in English and Spanish — as their real estate agent, not their lender.

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. Terms, rates, and eligibility requirements are set by each program and its participating lenders, and they change over time; a licensed lender makes the eligibility decision, case by case, in writing.

Sources

• City of Austin Housing, Homebuyer Resources — accessed October 2026
• City of Austin Housing, Homebuyer & Homeowner Resources — accessed October 2026
• TSAHC, Home Buying Assistance in Austin/Central Texas — accessed October 2026
• TSAHC, Home Sweet Texas Home Loan Program — accessed October 2026
• TDHCA Homebuyer Program, Programs — accessed October 2026