$1.2M in grants.
For buyers who knew where to look.
Since 2018 I've personally found and stacked $1.2 million in down payment assistance for Austin first-time buyers who walked in believing they needed 20% down and a perfect credit score. Almost none of them did. Most lenders won't tell you about these programs — not because they're hiding them, but because they're not paid to find them. I am. Here are the six I check first for every new client.
This page is updated quarterly. The grants and limits below reflect current 2025 program rules. Run your specific numbers through me — it's free, takes 5 minutes, and yes, I'll text you with the results the same day.
The grants I check first.
For every new buyer client. Every time. Even when they tell me they "probably don't qualify for anything."
- 01Statewide
TDHCA · My First Texas Home
Amount
Up to 5% of loan
Uses
Down payment + closing costs
Texas Department of Housing & Community Affairs offers a 30-year fixed mortgage paired with up to 5% of your loan amount as down payment assistance. The assistance is structured as a second lien — forgiven if you stay in the home, payable if you sell or refinance early. Income limits vary by county and household size; in Travis County a family of four can earn up to roughly $115,000 and still qualify in 2025.
Heads-up: You must complete an approved homebuyer education course. We have a partner counselor — about 90 minutes, online, free.
- 02For teachers, nurses, EMS, vets, peace officers
TSAHC · Homes for Texas Heroes
Amount
3% – 5% grant (no repayment)
Uses
Down payment
If you teach, nurse, serve, or have served, the Texas State Affordable Housing Corporation will give you 3-5% of your purchase price as a true grant. Not a loan — a grant. The money is yours; you do not pay it back if you sell. This is the single most underused program in the state because most lenders don't talk about it. I personally found this for an Austin ISD teacher last spring; she walked out of closing with $14,200 in unspent down payment funds.
Heads-up: Salary cap applies (~$129,000 for non-targeted areas). You must use a TSAHC-approved lender — we have three on speed dial.
- 03Austin city limits
City of Austin · Down Payment Assistance Program
Amount
Up to $40,000
Uses
Down payment + closing costs
The City of Austin Housing Department offers up to $40,000 in deferred-payment assistance for households earning at or below 80% of area median income. The loan accrues no interest and is forgiven incrementally over 10 years. It's intended for first-generation buyers, displaced residents, and households in gentrifying areas — but the eligibility net is wider than most people think. Worth checking even if you assume you'll be over the income cap.
Heads-up: Limited annual funding. We start applications in January for spring closings — supply runs out by July most years.
- 04Federal
FHA 203(b) + Down Payment Assistance Stack
Amount
3.5% down + DPA stack
Uses
Purchase + minor renovation
FHA's standard first-time homebuyer loan requires only 3.5% down with a 580 credit score (or 10% down at 500-579). It can be stacked with the TSAHC or TDHCA programs above — meaning your effective out-of-pocket down payment can be functionally zero if you qualify. The trade-off is mortgage insurance for the life of the loan, which we will walk you through honestly: it's the right tool for some buyers, the wrong tool for others.
Heads-up: Property must meet FHA appraisal standards. Some older Austin homes don't pass on first inspection — we'll preview before you offer.
- 05Travis County (outside Austin city limits)
Travis County · Hill Country Home Down Payment Program
Amount
Up to $30,000
Uses
Down payment
If you're buying in Travis County but outside Austin city limits — say, in Pflugerville, Manor, Lago Vista, or Bee Cave — Travis County has its own DPA program separate from the city's. It's smaller and less well-publicized, which means competition for funds is lighter. We've placed seven first-time buyers through this program in the last 18 months. Almost no other agents in town know it exists.
Heads-up: Income limits ~80% AMI. Must close within 12 months of approval.
- 06Limited periodic program
NeighborhoodLIFT (Wells Fargo / NeighborWorks)
Amount
$15,000 grant
Uses
Down payment
When this program is active in Austin (typically rolling enrollment with regional caps), Wells Fargo provides a $15,000 grant for buyers at or below 80% AMI. It pairs with most other DPA programs. The challenge is timing — we track the enrollment windows and notify our pre-qualified buyers the day they open. The funds get claimed in hours, not weeks.
Heads-up: We will text you the moment a window opens. Get pre-qualified now so you're ready.
Four things that aren't true.
Myth #01
"You need 20% down to buy in Austin."
Median first-time buyer down payment in Texas last year was 6%. Stack a 3.5% FHA with a 3% TSAHC grant and you're at 0.5% out of pocket. The 20% rule is a holdover from before assistance programs were widely available — and lenders who quote it are either lazy or trying to scare you into a bigger loan.
Myth #02
"If you take a grant, you can't sell for 5 years."
Depends on the grant. Some — like TSAHC Homes for Texas Heroes — are true grants with no repayment regardless of how long you stay. Others have a 5- or 10-year forgiveness schedule where you only owe a prorated portion if you sell early. We review the specifics for every program you qualify for, in plain English.
Myth #03
"Grant money is reserved for people in poverty."
Most Texas first-time buyer programs cap income at around 110-130% of area median income. In Travis County that's roughly $115,000-$135,000 for a family of four. Plenty of working professionals — teachers, nurses, project managers, software engineers in their first job — qualify and never know it.
Myth #04
"You should wait until you have a perfect credit score."
FHA loans require a 580 credit score to qualify for 3.5% down. We work with credit-repair partners who can typically lift scores 40-80 points in 60-90 days. The cost of waiting another year for a 'perfect' score is, on average, a 6-8% home price increase in Austin. Do the math.
Let's run your numbers. Free, fast, no pressure.
Send me your household size, county, and rough income range and I'll text you back the same day with the three programs you most likely qualify for. No commitment to work with me — I just want you to know what's out there.