Choosing the right mortgage in the Austin area depends on your credit, savings, and where you’re buying. Central Texas has unique lending patterns thanks to rising home prices, strong population growth, and a wide mix of first-time buyers, move-up buyers, and veterans across the metro and surrounding counties.
If you want a full overview of all loan options available statewide, you can start with my Texas Mortgage Loan Guide
Austin & Central Texas Snapshot (2025)
- Average Austin home price: ~$525,000
- Travis County average: ~$550,000
- Williamson County average: ~$475,000
- Hays County average: ~$425,000
- Bastrop County average: ~$390,000
Local trends worth noting:
- FHA loans remain popular with first-time buyers needing flexibility and lower down payments.
- VA loans are widely used across Central Texas due to the large veteran and active-duty population near Fort Cavazos and surrounding areas.
- USDA loans are attractive in edge markets where affordability and land availability still exist.
Best Loan Types for Austin-Area Buyers
Conventional Loans
Best for competitive markets like Austin proper, Cedar Park, Round Rock, Lakeway, and West Lake Hills, where sellers often favor strong, clean financing.
Learn more about requirements, PMI, and down payments on my Conventional Loans Page
FHA Loans
A great option for buyers targeting slightly lower price points or needing more flexible guidelines in areas like Pflugerville, Kyle, Buda, Manor, Elgin, and parts of Leander.
You can read more about credit scores and minimum down payments on my FHA Loans Page
VA Loans
An excellent choice for eligible veterans and active-duty buyers across Austin, Hays County, Bastrop County, Killeen, Temple, and surrounding areas — offering zero down and no monthly mortgage insurance. Details are available on my VA Loans Page
USDA Loans
Best for buyers open to living just outside the city in growing communities like Taylor, Liberty Hill, Burnet, Florence, Thrall, and parts of Bastrop County, where zero-down financing may still be available. Check eligibility and location rules on my USDA Loans Page
There’s no single “best” mortgage — only the loan that best fits your budget, goals, and location. In a fast-moving market like Austin and Central Texas, choosing the right loan strategy can make a real difference in whether your offer gets accepted.
If you want to compare options side-by-side for where you plan to buy, I’m happy to walk through the numbers and explain everything clearly.