First-Time Homebuyer Resources
Down Payment Assistance Program
June 2, 2010: Effective immediately, the Austin Housing Finance Corporation will not be accepting Down Payment Assistance applications until the Fall of 2010.
The Down Payment Assistance Program (DPA) provides qualified, first-time homebuyers, with a zero interest loan to assist with purchasing a home located within the Austin City Limits. DPA funds cover the down payment and eligible closing costs and pre-paid expenses associated with buying a home. View the DPA brochure in English or view en español.
The DPA Program options are as follows:
Standard DPA: Up to $10,000 in a deferred, forgivable, 0% interest loan for 10 years. Up to $1,000 additional for borrowers in a Mortgage Credit Certificate Program, and up to $4,999 for people with disabilities. The loan is forgiven if the borrower remains in the home ten (10) years without transferring title. Otherwise the loan is due and payable if the borrower sells, leases, transfers title, refinances, gets a home equity loan, or pays off the first lien within ten (10) years.
(NEW) Shared Equity DPA: Up to $40,000 in a deferred,0%-interest loan for 30 years. Borrowers must pay back the DPA loan plus a percentage of their equity (that is the same percentage as AHFC's contribution) when the borrower sells, leases, refinances, gets a home equity loan, pays off the first lien, or otherwise transfers title within 30 years. When selling the home, the borrower agrees to give AHFC the chance to purchase the house at market rate ("right of first refusal").
Eligibility: The DPA Program serves first-time homebuyers who are citizens or legal permanent residents, and whose entire household earns no more than 80% of the Austin Median Family Income established by the federal government. See the table below for income limits by household size. More details on eligibility are in the first pages of the DPA application. All borrowers must also complete the Housing Smarts homebuyer education classes before their lender submits the DPA application. View more information on the Housing Smarts Program
80% of the Median Family Income by Household Size for Austin
Effective March, 2009
Size
80%MFI
1
$41,050
2
$46,900
3
$52,800
4
$58,650
5
$63,350
6
$68,050
7
$72,750
8
$77,400
APPLYING: Only trained loan officers listed on the DPA Participating Lenders list may submit DPA applications for borrowers.
Information for Lenders: To be approved to submit DPA applications on behalf of borrowers, individual loan officers must attend DPA training. View the change in schedule for the next available DPA Participating Lender Training.
Information for Realtors: To learn more about DPA program processes and to better identify eligible homebuyers, please attend the next DPA Realtor Information Session on April 20, 2010. View the registration form for more information.
