Austin, Texas · Updated June 2025
First-Time Homebuyer Grants in Austin, TX
Austin-area first-time buyers may qualify for up to $40,000 in down payment assistance through state, city, and county programs. This guide covers every active program, eligibility requirements, and how to apply.
Austin TX First-Time Homebuyer Programs at a Glance
Austin-area first-time buyers can access up to $40,000 in forgivable down payment assistance through city, county, and state programs. Below is every active program, who qualifies, and how to apply.
| Program | Max Assistance | Type | Who Administers |
|---|---|---|---|
| TDHCA My First Texas Home | Up to 5% of loan | Deferred Loan | Texas DHCA |
| TDHCA Texas MCC | Up to $2,000/yr | Tax Credit | Texas DHCA |
| City of Austin NHCD DPA | Up to $40,000 | Forgivable | City of Austin |
| Travis County HFC | Varies | Bond + DPA | Travis County HFC |
| Homes for Texas Heroes | Up to 5% of loan | Deferred Loan | Texas DHCA |
| USDA Rural Development | 100% financing | Zero-Down | USDA |
Not Sure Which Austin Program You Qualify For?
Income limits and eligibility rules vary by program. A HUD-approved housing counselor can review your situation for free and help you stack multiple programs.
Get Free Eligibility Review1. TDHCA My First Texas Home
My First Texas Home is the flagship down payment assistance program from the Texas Department of Housing and Community Affairs. It combines a 30-year fixed-rate mortgage with a deferred second mortgage of up to 5% of the loan amount for down payment and closing costs.
- Assistance: 2%, 3%, 4%, or 5% of the loan amount
- Loan type: 30-year fixed (FHA, VA, USDA, or Conventional)
- Income limit: Varies by county; roughly $74,500–$106,500 for the Austin area
- Repayment: Deferred — no monthly payments; due on sale or refinance
2. TDHCA Texas Mortgage Credit Certificate (MCC)
The Texas MCC converts 20% of your annual mortgage interest into a dollar-for-dollar federal tax credit — up to $2,000 per year — for the life of the loan. It can be stacked on top of My First Texas Home.
- Credit rate: 20% of annual mortgage interest
- Maximum credit: $2,000 per year
- Duration: Life of the loan, as long as the home is your primary residence
- Stackable: Yes — can combine with other TDHCA programs
3. City of Austin NHCD Down Payment Assistance
The City of Austin Neighborhood Housing and Community Development (NHCD) program offers forgivable loans up to $40,000 for eligible buyers purchasing within Austin city limits. This is the largest single grant available to Austin buyers.
- Assistance: Up to $40,000
- Structure: Forgivable deferred lien — forgiven after 10 years if you stay in the home
- Income limit: ≤80% AMI; approximately $70,350 for a household of 3
- Homebuyer education: Required before closing
4. Travis County Housing Finance Corporation
The Travis County HFC issues mortgage revenue bonds to fund below-market-rate home loans and down payment assistance for buyers in Travis County, including areas outside Austin city limits.
- Assistance type: Below-market first mortgage plus optional DPA
- DPA amount: Varies by bond issuance; typically 3–5% of purchase price
- Income limits: 80%–115% of AMI depending on program layer
- Who qualifies: First-time buyers (no homeownership in past 3 years); veterans may be exempt
5. Homes for Texas Heroes
Homes for Texas Heroes is a TDHCA program that provides down payment assistance specifically for public service workers — with a slightly lower rate than standard My First Texas Home.
- Eligible professions: K–12 teachers, police officers, firefighters, EMT/paramedics, corrections officers, and veterans/active military
- Assistance: Up to 5% of loan amount (deferred second mortgage)
- Rate benefit: Typically 0.125%–0.25% below standard TDHCA rates
- Stackable: Can be combined with the Texas MCC
6. USDA Rural Development Loan
The USDA Single Family Housing Guaranteed Loan offers 100% financing — no down payment required — for homes in eligible rural and suburban areas. Some communities near Austin, including parts of Bastrop, Hays, and Williamson counties, qualify.
- Down payment: $0 required
- Financing: Up to 100% of appraised value; closing costs may be financed if appraisal supports it
- Income limit: ≤115% of area median income; roughly $103,500 for a family of 1–4
- Property eligibility: Must be in a USDA-designated rural area — use the USDA property eligibility map to check specific addresses
- Fees: 1% upfront guarantee fee (financeable) + 0.35% annual fee
How to Apply: 5 Steps
Every program uses Area Median Income (AMI) as the eligibility threshold. Gather your household gross income and compare to current Travis County AMI limits — HUD publishes updated figures each spring.
Most Austin DPA programs require an 8-hour course before closing. Take it online or in-person through a HUD-approved local agency. Cost is typically $75–$99.
TDHCA programs require a TDHCA-approved lender. The City of Austin NHCD program also maintains its own lender list. Confirm your lender participates before proceeding.
Your lender handles TDHCA applications alongside your mortgage. For the City of Austin NHCD program, you apply directly through the City. Apply early — city programs close when annual funds run out.
For forgivable loans (City of Austin NHCD), remain in the home as your primary residence for the full forgiveness period — typically 10 years. Selling or refinancing early may trigger partial or full repayment.
Frequently Asked Questions
Editorial disclosure: This page is for informational purposes only. Program details, funding availability, and eligibility requirements change frequently. Always verify current terms directly with program administrators before making financial decisions. Home Grant Guide may receive compensation from affiliate partners, which does not influence our editorial content.
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