Low Down Payment Purchase Options in Austin, TX

The 20% Myth

Twenty percent down is a nice milestone because it removes mortgage insurance on a conventional loan. It is not a requirement to buy. Many of the buyers we help put down far less, and keeping some savings in the bank after closing is often the smarter move anyway.

The trade-off is usually mortgage insurance or a funding fee, plus a slightly larger loan balance. We lay those costs out next to each other so you can decide how much to put down instead of guessing.

Which One Fits You?

• Credit still recovering? An FHA Home Loan is often the easiest approval.
• Served in the military? Start with a VA Purchase Loan.
• New to all of this? Our First Time Home Buyer page walks through the whole process.
• Self-employed? A Self Employed Mortgage may calculate your income differently.
• Higher price point? Some lenders offer reduced-down options on a Jumbo Home Loan for strong borrowers.

Cash to Plan For Besides the Down Payment

• Earnest money when your offer is accepted.
• Inspection and, sometimes, a survey.
• Closing costs such as lender, title and recording charges.
• Prepaid items: the first year of homeowners insurance and an escrow cushion for taxes.
• A little left over for move-in and emergencies.

Our Process

1. Savings check-in. We look at what you have and where it is coming from, including gifts.
2. Program comparison. We show monthly payment and cash to close for each option you qualify for.
3. Pre-approval. You get a letter matched to the program you choose.
4. Negotiation support. We help your agent understand how seller credits can lower your cash to close.
5. Closing. We review every figure with you before signing day.

Low Down Payment Questions

Low Down Payment Buying Around Austin

Price points vary widely across the metro. A 3% or 3.5% down payment in Hutto, Manor or San Marcos can look very different than in central Austin. Many Central Texas builders also offer incentives toward closing costs.