Most buyers in the Austin area don’t put 20% down — and they don’t need to. That old rule just doesn’t reflect how people are actually buying homes in Central Texas today.
Typical Down Payments in Austin & Central Texas
Here’s what we commonly see:
- First-time buyers: 3–6%
- Move-up buyers: 10–15%
- FHA loans: 3.5% minimum
- VA loans: 0% down
- USDA loans: 0% down (in eligible areas)
- Higher-priced / jumbo homes: often 10–20%, depending on the scenario
The right amount depends on your loan type, price point, and comfort level — not a one-size-fits-all rule.
Austin Advantage: Competing with Less Down
Because so many buyers in Central Texas use FHA or low-down-payment Conventional loans, sellers are generally comfortable with smaller down payments — especially when paired with a strong, fully reviewed pre-approval.
In many cases, it’s the quality of the financing, not the size of the down payment, that helps an offer stand out.
A larger down payment can lower your monthly payment — but it shouldn’t drain your savings. The best down payment is one that keeps your finances balanced and your stress level low.
If you want help deciding what makes the most sense for your situation, I’m happy to walk through it with you.