Why Austin is Great for First-Time Buyers
Despite Austin's reputation as an expensive market, there are still opportunities for first-time buyers. The city offers diverse neighborhoods at various price points, strong job growth that supports mortgage qualification, and multiple assistance programs to help with down payments and closing costs.
Down Payment Assistance Programs
Texas and Austin offer several programs specifically for first-time home buyers:
Texas State Affordable Housing Corporation (TSAHC)
Offers down payment assistance up to 5% of the loan amount. Available to buyers who haven't owned a home in 3+ years. Income limits apply but are fairly generous for the Austin area.
Texas Department of Housing (TDHCA) - My First Texas Home
Provides 30-year fixed-rate mortgages with down payment assistance. Can be combined with mortgage credit certificates for additional tax savings.
Austin Housing Finance Corporation
Local programs for Austin residents including down payment assistance and homebuyer education. Priority given to Austin city employees and residents of certain areas.
Affordable Austin Neighborhoods for First-Time Buyers
East Austin
While rapidly gentrifying, pockets of East Austin still offer relatively affordable homes with great access to downtown. Look east of 183 for better deals.
North Austin / Tech Ridge
More affordable single-family homes and townhomes with good access to tech employers along the 35 corridor.
South Austin / Manchaca
Established neighborhoods with character. Prices vary but condos and smaller homes can be found under the median price.
Pflugerville & Round Rock
Just north of Austin, these suburbs offer significantly more purchasing power while still providing easy access to Austin jobs.
First-Time Buyer Tips for Austin
- Get pre-approved early: Austin's market moves fast. Have your financing ready before you start looking.
- Consider FHA loans: Only 3.5% down required with a 580+ credit score. Great for first-time buyers.
- Don't skip the inspection: Texas has an "option period" - use it wisely to inspect the property thoroughly.
- Budget for property taxes: Texas has no state income tax but property taxes are 2-3%. Factor this into your monthly payment.
- Work with a buyer's agent: A good agent knows the market and can help you compete effectively.
How Much House Can You Afford in Austin?
A general rule is to keep your total housing payment (mortgage, taxes, insurance) under 28% of your gross monthly income. In Austin, first-time buyers typically qualify for homes in the $300K-$450K range, depending on income and debt.
With a 3.5% FHA down payment on a $350,000 home, you'd need approximately $12,250 for down payment plus $8,000-$12,000 for closing costs. Down payment assistance programs can significantly reduce this amount.
Ready to Buy Your First Austin Home?
Our agents specialize in helping first-time buyers navigate the Austin market. We'll help you find programs you qualify for and guide you through every step.
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