Safe and affordable housing is essential for every community, and affordability is a major issue facing renters and potential homebuyers across the country. When you start your home search, you may find yourself wondering how much you can afford and if there are any helpful programs that put the path to homeownership closer in reach. We’re here to help you understand Austin and Texas affordable housing programs and resources, so keep reading.

In Austin, the rise in home prices is outpacing income, according to a recent housing affordability outlook report by researchers at Texas A&M University’s Texas Real Estate Research Center. Even though the median household income in Austin has increased in the last year, the gap didn’t begin to close because of the average home price. These factors coupled with rising mortgage rates (and therefore higher monthly payments) have hurt purchase affordability.

What down payment assistance programs are available in Austin?
How to qualify, apply, and get started

The Texas State Affordable Housing Corporation’s (TSAHC) website is a great place to start. TSAHC provides fixed-rate mortgage loans, down payment assistance, and mortgage interest tax credits for homebuyers. They do this through two programs:

  • Homes For Texas Heroes Program: This program offers home loans and down payment assistance for teachers, police officers, firefighters and EMS personnel, corrections officers, and veterans.
  • Home Sweet Texas Home Loan Program: This down payment assistance program provides qualifying homebuyers with a mortgage loan and funding to use for a down payment. Through down payment assistance, they help potential buyers overcome a hurdle. According to their website, if you’re eligible, you can essentially receive free money to help you buy a home.

Note: Both of these programs do require you to have a minimum credit score of 620 and meet certain income requirements.