City of Austin DPA Programs
Down Payment Assistance
City of Austin DPA
Location Served: Austin, TX
Provider: City of Austin
Approved Lender: New American Funding
Austin’s Down Payment Assistance Program assists eligible, first-time homebuyers with deferred, 0% interest loans to apply towards the purchase of an Austin home.
- This program is only for first-time homebuyers. Please note, a first-time homebuyer is defined as a person who has not owned a home in the past three years or has been displaces because of divorce.
- Funding from the City of Austin DPA Program may be used to pay the down payment and eligible closing costs.
- There is no set household income limit.
- In order to qualify, the potential property must be located within Austin city limits.
- The sales price of the home may not exceed $274,312.
- Eligible property types include: Single-family home, town home, or condominium
- The standard DPA loan is a deferred, forgivable, 0% interest loan for 10 years, loan. As long as the borrower does not sell or transfer title for 10 years, the standard DPA loan is forgivable.
- The standard DPA maximum loan amount is equivalent to $10,000. Borrowers in the Mortgage Credit Certificate Program may receive up to an additional $1,000, while borrowers with disabilities may receive up to an additional $4,999.
- Eligible borrowers may receive up to $40,000 with a shared equity, deferred, 0% interest for 30 years, DPA loan.
- A shared equity loan is not forgiven; therefore, borrowers must pay back the loan amount plus a percentage of equity when transferring the title of the home or selling it. If the borrower chooses to sell the home, he/she also gives the Austin Housing Finance Corporation the chance to buy the home at the market rate.
- Homebuyer Counseling / Education is required.
- Owner Occupancy is required.
Other Program Comments: The actual dollar amount of funds a borrower is eligible for is based on their need for assistance, or their “financial gap,” and is calculated only after the application is completed. Borrowers must be approved for a mortgage loan from a “Participating Lender.”
If you have any additional questions regarding home mortgages, please contact a mortgage expert by filling out the form on the right or calling (512) 524-8077. You can also email Team@CandyBuzan.com.