Home Rehabilitation Loan Program
The Home Rehabilitation Loan Program offers loans up to $75,000 for interior and exterior repairs, or up to $350,000 to demolish and reconstruct the home. These loans have a 0% interest rate and may be forgiven after 15 to 20 years.
What is the Home Rehabilitation Loan used for?
The purpose of the Homeowner Rehabilitation Loan Program is to provide home improvement loans to assist low- to moderate-income homeowners within the Austin full-purpose city limits.
No monthly loan payments are required, and a lien will be placed on the home for the loan amount for up to 15 years. This lien will be released at the end of the 15-year term, provided that the home remains your primary residence.
There are two types of Homeowner Rehabilitation Loan Program loans:
Repair only. Repairs are made to single-family homes occupied by owners to address health, safety, and code violations. These repairs include foundation, roofing, plumbing, electrical work, as well as inside and outside repairs.
Demolish and rebuild a new home. If the existing home cannot be repaired within the $75,000 loan limit, it may be recommended to demolish the home and build a new one in its place.
Loan Terms and Eligibility Requirements
Both loan types will require the following:
Clear Title
The Applicant must hold a clear title to the property, and the property must be owned solely in the Applicant's name.
Flood Plain
Repairs only: Homes located in the 25-year flood plain are not eligible. However, homes within the 100-year flood plain are eligible if flood insurance is purchased and maintained for the entire loan term.
Demolish and rebuild: Homes located within the 25-year and 100-year flood plains are not eligible.
Homeowners Hazard Insurance
The homeowner’s hazard insurance must be purchased a year in advance, at replacement cost, with new coverage. This coverage is required for the entire loan term.
Primary Residence
The single-family detached home must remain the Applicant’s primary residence for the entire loan term.
Low-to-Moderate-Income Limits
Your household’s total gross annual income must be at or below 80% of the Median Family Income (MFI). This includes income from both related and unrelated individuals living in your home. The table below shows the income limits based on the number of people in your home.
| Number of people living in household | 1 person | 2 people | 3 people | 4 people | 5 people | 6 people |
| Annual income at 80% MFI or less | $74,800 | $85,450 | $96,150 | $106,800 | $115,350 | $123,900 |
Please review the terms for both loan types for details. After your application is evaluated, you will be informed about your eligibility for each loan type.
Repair Only: Loan Terms
Maximum loan amount: Maximum $75,000 loan limit with a 15-year loan term.
Interest rate: Zero percent interest (0% APR).
Monthly payments: No monthly payments are required.
Terms of Loan forgiveness: You will receive monthly loan forgiveness if you use the home as your main residence for the entire term. After 15 years, the loan will be forgiven, and you'll receive a Release of Lien. If you stop using the home as your primary residence before that, you'll owe the remaining unpaid loan amount.
Demolish and Rebuild: Loan Terms
Maximum loan amount: Maximum loan amount of $350,000 with a 20-year loan term.
Interest rate: Zero percent interest (0% APR).
Monthly payments: No monthly payments are required.
Terms of Loan forgiveness: You will receive monthly forgiveness on your loan if you live in your home as your primary residence for the entire 15-year term. If you stay for the full term, the loan will be forgiven, and you'll receive a Release of Lien. If you stop using the home as your primary residence before the term ends, you will owe the unpaid loan amount plus 25% of the accrued equity.
Apply for home repairs
Application Process
Complete and submit the Home Repairs Request More Information form online (available in English and Español).
An Application Packet and Home Rehabilitation Loan Program Disclosure will be emailed or mailed to you at that time.
The application process begins when the Application Packet and Program Disclosure are completed and returned along with the listed documentation.
Questions?
Call 512-974-3100 OR email hpdcs@austintexas.gov with questions. The City receives and accepts Video Relay Service (VRS) calls from people who are Deaf or hard of hearing.