If you're a first-time homebuyer in Austin or one of our nearby towns like Cedar Park, Round Rock, Georgetown, or Leander — welcome to the wild but wonderful world of mortgage options.
It’s totally normal to feel overwhelmed by acronyms like FHA, PMI, DPA, and USDA.
Let’s break it down in plain English — no mortgage jargon, no fluff, just the stuff you actually need to know to pick the right loan.
Best Loan Options for First-Time Buyers in Texas
FHA Loan – The First-Time Buyer Favorite
Minimum down payment: 3.5%
- Credit score needed: As low as 580
- Perks: Flexible guidelines, gift funds allowed
- Consider this if: You have a lower credit score or less saved for a down payment
Hot tip: Great for buyers in areas like Pflugerville, Hutto, Manor, and parts of East Austin.
Conventional 97% – Not Your Grandma's Loan
Minimum down payment: 3%
- Credit score needed: typically 620+
- Perks: Potential lower mortgage insurance than FHA (if you qualify)
- Consider this if: You have good credit and want lower long-term costs
Heads-up: The 3% down payment is the "HomeReady" or"Home Possible" loan in disguise — we’ll help you see if you qualify.
Local Down Payment Assistance (DPA) Programs
Minimum down payment: $0 (with assistance)
- Eligibility: Income and area-based
- Perks: Get help with down payment and/or closing costs
- Consider this if: You qualify for city or state programs like TSAHC, Hill Country Home Program, or TDHCA
Pro tip: Even if you think you make too much money, let me run the numbers. Some programs use targeted income limits that go way higher than you'd expect.
VA Loan – For Our Veterans (No Down Payment!)
Minimum down payment: $0
- Eligibility:Active duty, reserve, or veterans
- Perks: No monthly mortgage insurance, super low rates
- Consider this if: You’ve served our country — THANK YOU
USDA Loan – Yes, It’s Real (and $0 Down!)
Minimum down payment: $0
Eligibility: Income & property location
- Perks: No PMI, great for rural or suburban buyers
- Consider this if: You’re open to areas like Liberty Hill, Florence, Jarrell,
Bastrop and Taylor.
How to Choose the Right Mortgage for You
There’s no one-size-fits-all — and don’t let anyone rush you into “whatever's fastest.” The right loan depends on:
- Your credit score
- How much you’ve saved (or can get in help)
- Your income + monthly debt
- Where you're buying
- Whether you want the lowest upfront cost or the lowest lifetime cost
I’ll walk you through your exact numbers and show you a few smart strategies (like how to get the seller to cover your closing costs).
Buying your first home doesn’t have to be confusing or scary. I’ve helped hundreds of first-time buyers across Austin and the surrounding areas — and I love explaining things in normal words (not mortgage robot-speak).
I’ll make sure you:
> Know all your options
> Understand the real payment (not some too-good-to-be-true teaser rate)
> Feel 100% confident when you’re ready to make an offer
Ready to See Which Loan Is Best for You?
Let’s run your numbers together and make a smart game plan.