First-Time Home Buyer Programs in Austin, TX
Austin runs a named local FTHB program (Austin Housing Finance Corporation Down Payment Assistance) that layers on top of the state flagship — first-time buyers here regularly stack both plus a federal loan. Median first-time buyer purchase price in the Austin-Round Rock-Georgetown area is around $381,000.
Austin Housing Finance Corporation Down Payment Assistance
Austin Housing Finance Corporation Down Payment Assistance is a Austin-specific program that layers on top of TDHCA's state flagship (My First Texas Home (TDHCA)) and federal FHA/VA/USDA loans. Terms, income caps, and funding cycles change each fiscal year — verify current details before applying.
How first-time homebuyer programs work in Austin
Austin first-time buyers assemble their financing from three layers. The state flagship — My First Texas Home (TDHCA) from TDHCA — pairs a competitive first mortgage with down payment and closing-cost assistance, often as a forgivable second lien. Federal programs (FHA at 3.5% down, VA at 0% for eligible veterans, USDA for qualifying outer-ring Austin-Round Rock-Georgetown ZIPs) layer underneath.
On top of that, Austin runs Austin Housing Finance Corporation Down Payment Assistance — a local program with ZIP or income restrictions that often delivers the largest per-buyer totals in the Austin-Round Rock-Georgetown area. Combined, Austin buyers regularly stack all three.
Eligibility hinges on three inputs: credit score, household income relative to program caps that vary by county in TX, and purchase price. Completing a HUD-approved homebuyer education course is required before closing.
How to qualify: Austin first-time buyer steps
- 1
Check your credit for Austin program eligibility
Most Texas first-time buyer programs require typically 620–640 for conventional, 580 for FHA. Pull your score for free with a soft inquiry.
- 2
Confirm first-time buyer status
TDHCA defines "first-time buyer" as not owning a principal residence in the past three years. Some Austin targeted ZIPs waive this rule.
- 3
Take a HUD-approved homebuyer education course
Most TX programs require an approved homebuyer education course before closing. Most run 6–8 hours online.
- 4
Apply through a participating Austin lender
Austin Housing Finance Corporation Down Payment Assistance is originated by participating lenders in the Austin-Round Rock-Georgetown area, not directly by the program agency. Your loan officer submits the DPA package alongside your main mortgage.
- 5
Close on your Austin home
First mortgage funds and DPA come to closing together. Median first-time buyer purchase price in the Austin-Round Rock-Georgetown area is around $381,000.
See if you're mortgage-ready in Austin — 60 seconds
Get a free credit readiness check and a 30-day plan tailored to first-time buyer programs in TX.
Start my readiness checkAustin first-time buyer programs: FAQ
What first-time buyer programs are available in Austin, TX?▾
Austin runs a named local program — Austin Housing Finance Corporation Down Payment Assistance — which layers on top of the state flagship My First Texas Home (TDHCA) from TDHCA. Combined, they stack with federal FHA, VA, and USDA loans for the largest per-buyer total.
What credit score do I need for first-time buyer programs in Austin?▾
Most Texas first-time buyer programs require typically 620–640 for conventional, 580 for FHA. Higher scores unlock better rates and more DPA options.
How much home can a first-time buyer afford in Austin?▾
Median first-time buyer purchase price in the Austin-Round Rock-Georgetown area is around $381,000 — meaningfully below the overall metro median of $465,000 because FTHBs concentrate in condos and starter homes. Use HomeApproach's Affordability Simulator to model what you can afford in your target ZIP.
Do Austin programs work with FHA or VA loans?▾
Yes. Austin Housing Finance Corporation Down Payment Assistance and most TDHCA products layer on top of FHA, VA, USDA, and conventional first mortgages. Your lender submits the DPA package alongside your first mortgage.
Can I stack Austin local DPA with state and federal programs?▾
In most cases yes. Austin buyers regularly combine the local program with county DPA and federal loans. Home Approach's Grant Finder waterfalls through all four layers by ZIP to show your total.