Down Payment Assistance Programs for Austin First-Time Buyers

The biggest obstacle for most first-time buyers isn't the mortgage payment — it's the cash needed to close. Austin and Texas offer several real down payment assistance programs that can stack with FHA, VA, USDA or conventional financing.

The major programs available in 2026

Home Sweet Texas (TSAHC). The Texas State Affordable Housing Corporation's general first-time buyer program offers 3%-5% of the loan amount as either a non-repayable grant or a deferred, 0%-interest second lien repaid only when you sell, refinance, or pay off the home. It's compatible with FHA, VA, USDA and conventional (HFA Advantage/Preferred) loans and is open to income-qualifying buyers in any profession.

Homes for Texas Heroes. A TSAHC program with the same down payment assistance structure, reserved for teachers, firefighters, EMS personnel, police officers, corrections officers, and veterans.

My First Texas Home (TDHCA). The Texas Department of Housing and Community Affairs pairs a below-market-rate first mortgage with down payment and closing cost assistance for eligible first-time and veteran buyers statewide.

City of Austin & Austin Housing Finance Corporation programs. Local initiatives supplement state programs for buyers purchasing within Austin city limits, sometimes with deeper assistance for lower-income households.

Can you combine programs?

In many cases, yes. Buyers can stack a state program like Home Sweet Texas with a zero-down VA or USDA loan, or layer local Austin assistance on top of state assistance, to minimize both the down payment and closing costs required at the table.

How to know if you qualify

Qualification generally depends on three things: your household income relative to the county limit, whether you've owned a home in the last three years (the standard "first-time buyer" definition used by most programs), and completing a homebuyer education course, which many programs require before closing.

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