San Antonio and Austin Down Payment Assistance

San Antonio and Austin are two of the most exciting cities in Texas, and they sit just 80 miles apart along the I-35 corridor. While each city has its own personality and housing market, both offer strong opportunities for home buyers looking to take advantage of down payment assistance programs. Whether you are drawn to San Antonio's affordability and rich culture or Austin's booming tech scene and vibrant lifestyle, DPA programs can help you get into your first home sooner.

This guide breaks down the down payment assistance landscape for both cities, including state programs, local options, income limits, and how to make the most of the I-35 corridor.

San Antonio Housing Market Overview

San Antonio is the second-largest city in Texas and one of the most affordable major metros in the state. The median home price in the San Antonio area generally hovers in the mid $200,000s to low $300,000s, making it one of the more accessible markets for first-time buyers.

The city's economy is anchored by the military (Joint Base San Antonio), healthcare, tourism, and a growing technology sector. Population growth has been steady, and new construction continues to expand into areas north and west of the city.

For buyers using down payment assistance, San Antonio's price points are a major advantage. Lower median prices mean that DPA funds cover a larger percentage of the purchase, and more homes fall within program purchase price limits.

Austin Housing Market Overview

Austin's housing market tells a different story. After years of explosive growth driven by the tech industry, the Austin metro has experienced a pricing correction from its 2022 peaks. Median home prices in the Austin area now typically range from the mid $300,000s to the mid $400,000s, depending on location.

Despite the correction, Austin remains more expensive than San Antonio. However, the price moderation has actually opened doors for DPA-eligible buyers who may have been priced out during the market frenzy. More homes now fall within the purchase price limits of state DPA programs, and inventory has improved significantly.

State DPA Programs for Bexar and Travis County Buyers

Buyers in both San Antonio (Bexar County) and Austin (Travis County) have access to the same statewide DPA programs. These are administered by two agencies.

TDHCA Programs

The Texas Department of Housing and Community Affairs offers two programs:

• My First Texas Home provides up to 5% of the loan amount in DPA for first-time buyers. This comes as a deferred or forgivable second lien paired with a competitive 30-year fixed-rate first mortgage.
• My Choice Texas Home offers the same DPA structure but is available to both first-time and repeat buyers.

Both programs work with FHA, VA, and USDA loans, giving buyers in San Antonio and Austin flexibility in their financing.

TSAHC Programs

The Texas State Affordable Housing Corporation administers two additional programs:

• Homes for Texas Heroes serves teachers, first responders, healthcare workers, corrections officers, and military members. DPA is available as a grant (no repayment required) or a second lien, up to 5% of the loan amount.
• Home Sweet Texas is open to all eligible buyers regardless of profession, with the same DPA options.

The grant option through TSAHC is particularly attractive because it does not need to be repaid as long as program requirements are met.

Income Limits for Bexar and Travis Counties

Income limits differ between the two counties, reflecting their different economic profiles.

Bexar County (San Antonio)

Bexar County income limits for DPA programs tend to be moderate, generally in the range of $80,000 to $100,000 for a one-to-two-person household, depending on the specific program and year. San Antonio's lower cost of living means these limits capture a broad swath of the local workforce.

Travis County (Austin)

Travis County typically has higher income limits due to the area's higher cost of living and median income levels. Limits for a one-to-two-person household often range from $95,000 to $120,000, again depending on the program.

Income limits are updated annually, so it is essential to check current figures when you begin the application process. Our qualifier quiz can give you a quick read on your likely eligibility.

Local and City-Level Programs

San Antonio Local Programs

The City of San Antonio has historically offered robust local DPA programs through its Neighborhood and Housing Services Department. These programs may provide additional down payment and closing cost funds to qualifying buyers purchasing within city limits. Eligibility often depends on household income, household size, and completion of a homebuyer education course.

Bexar County also participates in various community-level homeownership initiatives funded through HUD and other federal sources.

Austin Local Programs

The City of Austin operates the Austin Housing Finance Corporation (AHFC), which provides down payment assistance to income-eligible buyers. Austin's local programs can sometimes be layered with state DPA programs, potentially increasing the total assistance available.

Travis County also has community-based organizations that support homeownership for low-to-moderate income families.

Availability and funding levels for local programs can change from year to year, so working with a knowledgeable lender who stays current on these options is critical.

The I-35 Corridor: Opportunities Between the Cities

One of the unique advantages of the San Antonio-Austin region is the I-35 corridor that connects them. The communities along this stretch offer some compelling opportunities for home buyers:

• New Braunfels (Comal County) has become one of the fastest-growing cities in Texas, with a charming downtown, the Guadalupe River, and home prices that often split the difference between San Antonio and Austin.
• San Marcos (Hays County) is a college town with an energetic community and prices that can be more accessible than Austin proper.
• Kyle and Buda (Hays County) are south of Austin and have seen tremendous growth, with new construction providing options within DPA purchase price limits.
• Schertz and Cibolo (Guadalupe County) sit on the northeast side of San Antonio and offer suburban living with easy access to both cities.

Buyers who work in one city but are open to living along the corridor can often find better value while still maintaining a reasonable commute.

Comparing San Antonio and Austin for DPA Buyers

Here is how the two cities stack up for buyers using down payment assistance:

Affordability: San Antonio wins on price. Lower median home values mean more homes qualify under DPA purchase price limits, and your assistance dollars stretch further.

Income Limits: Austin's higher limits mean higher-earning buyers can still qualify for DPA, which is necessary given higher home prices.

Inventory: Both markets have seen improved inventory compared to recent years, but San Antonio generally offers more options at lower price points.

Growth Potential: Austin's economic engine continues to attract major employers, which supports long-term property value appreciation. San Antonio is growing too, with a more diversified economic base.

Quality of Life: This is a personal preference. San Antonio offers deep history, a lower cost of living, and a more laid-back pace. Austin is known for its music scene, outdoor recreation, and tech-forward culture.

Neither city is a wrong choice. The right fit depends on your career, lifestyle preferences, and financial situation.

Tips for San Antonio and Austin Buyers

Work with a DPA-Specialized Lender

Not all lenders participate in TDHCA and TSAHC programs. The Cook Brothers Mortgage Team is approved to offer all four state DPA programs across both markets. We can help you compare options and find the best fit.

Consider Both Cities

If your job is remote or flexible, do not limit your search to just one city. The I-35 corridor gives you access to a wide range of communities at different price points.

Factor in Property Taxes

Texas property tax rates vary by county and school district. Bexar County rates are generally slightly lower than Travis County rates. Make sure you understand the full cost of ownership before committing.

Act on Updated Information

Program details, income limits, and purchase price caps change annually. Always verify current requirements before making financial decisions.

Ready to Get Started?

Whether you are looking in San Antonio, Austin, or somewhere along the I-35 corridor, down payment assistance could make homeownership more achievable than you think. Take our free qualifier quiz to see which programs fit your situation, or reach out to us directly.

• Tanner Cook - NMLS #2090424 - (480) 420-4918
• Zac Cook - NMLS #2111496 - (480) 406-2016

Zac Cook is a licensed mortgage loan originator (NMLS #2111496). This content is for informational purposes only and does not constitute financial advice. Loan approval is subject to credit and property qualification. Equal Housing Lender.