Austin’s prices climbed fast over the past few years, so the city offers meaningful down payment help — up to $40,000 through the Austin Housing Finance Corporation — to keep ownership within reach for moderate-income buyers.
This guide focuses on what first-time buyers in Austin specifically can tap in 2026 — the local programs run by the city and county, the statewide help you can layer on top, and what it realistically takes to buy here.
Austin’s own first-time buyer programs
Austin’s local help centers on the city’s housing finance arm:
- City of Austin / AHFC Down Payment Assistance — from the Austin Housing Finance Corporation, a deferred second of up to $40,000 for down payment and closing costs, for buyers at or below 80% of median family income, buying within Austin’s Full Purpose city limits (sales-price cap around $440,000)
- Austin Community Land Trust — a nonprofit land-trust model in which you own the home and lease the land, keeping the price permanently affordable with resale restrictions (amounts vary)
These local programs are the piece most buyers miss, because they are run by the city or county rather than a lender — and they can often be combined with the statewide programs below.
Statewide programs you can also use in Austin
On top of Austin’s local help, every Texas buyer can access the state’s housing finance programs — below-market loans, down payment assistance, and a possible tax credit. We cover them in full in our guide to Texas first-time home buyer programs, and the wider local picture in our Texas first-time home buyer guide. In many cases you can stack a city program with a state program to cover most or all of your cash to close — a lender who works with both can structure it.
What it takes to buy in Austin
The Austin metro median home price is around $450,000, and within the city itself it runs higher — roughly $500,000 to $540,000 — even after cooling from the 2022 peak. That keeps a first home a stretch on a median income, so the city’s up-to-$40,000 assistance and the land-trust option are important tools for buyers who qualify.
Before you shop, pin down your budget. Our home affordability guide walks through how income, debt, and rates set your price range, and our first-time home buyer checklist keeps the rest of the process on track.
Loan options for Austin buyers
Most Austin first-time buyers use one of a few loan types, each of which can pair with the assistance above:
- FHA loans — 3.5% down with flexible credit, popular with first-time buyers
- Conventional loans — as little as 3% down, with reduced mortgage insurance through state HFA versions
- VA and USDA loans — zero down for eligible veterans and in qualifying areas
- Down payment assistance — city and state programs that layer on top (see our down payment assistance guide)
How to buy your first home in Austin
- Check your budget and credit first — see our guide to credit score requirements.
- Complete a homebuyer education course — nearly every Austin and Texas program requires one, and it is usually free.
- Find a lender who works with both Austin and Texas programs, and ask them to run the city and state options together.
- Get pre-approved, then line up your assistance before you make an offer.
One note: local and state program funding and terms change, and some rounds close when the money runs out. Always confirm current amounts and availability with the program administrator before counting on a figure.
Austin first-time buyer FAQ
What down payment help is available in Austin?
The main local program is the Austin Housing Finance Corporation’s down payment assistance, a deferred second of up to $40,000 for buyers at or below 80% of median family income within Austin’s Full Purpose city limits. The Austin Community Land Trust offers a different path — permanently affordable homes where you own the house and lease the land. Texas’s statewide programs are also available.
Can I combine Austin city programs with Texas state programs?
Often yes. City or county assistance is usually designed to layer on top of a first mortgage, and many buyers stack it with a Texas state program to cover most of their down payment and closing costs. A lender who participates in both can confirm what combines. See our Texas programs guide for the statewide options.
Do I have to be a first-time buyer to qualify in Austin?
Yes — Austin’s assistance requires that you be a first-time buyer or have not owned a home in the last three years, buying a primary residence within the Full Purpose city limits. Income must be at or below 80% of median family income, the price must fall under roughly $440,000, and you must complete homebuyer education and earn a certificate. Confirm current limits with the City of Austin Housing Department.
Who qualifies for Austin’s $40,000 down payment assistance?
The Austin Housing Finance Corporation offers up to $40,000 to first-time buyers (or those who have not owned in three years) earning at or below 80% of median family income — roughly $74,800 for one person up to about $106,800 for a family of four. The home must be within Austin’s Full Purpose city limits, under about a $440,000 price cap, and your primary residence, and you must complete a homebuyer education course. Confirm current figures with the city.