East Austin mortgages at a glance
CapFi Lending is a mortgage broker in East Austin. We compare more than 50 wholesale lenders for buyers of older bungalows, condo-regime duplexes and new infill homes. Self-employed buyers and investors can look at DSCR, bank statement and P&L loans, and City HOME rules now allow up to three units on many lots.
Buying a home in East Austin: what to know before you finance
East Austin financing turns on the property type more than the price. A 1940s bungalow, a two-unit condo regime and a lot with an ADU can sit on the same block and need three different loans. Check flood maps, condo documents and permitted units early, then compare lenders that accept that exact structure.
Our office is in Austin, so it isn’t a market we read about. It’s where we work. This page walks through the housing you’ll see here, what each type means for a loan, current price context, the tax bill, and the loan programs that fit East Austin buyers and investors. If you’re comparing neighborhoods across the city, start on our Austin mortgage broker page.
Homes in East Austin: housing types and what each means for your loan
“East Austin” here means the neighborhoods east of I-35 covered by ZIP codes 78702, 78721 and part of 78722. The housing changes block by block, and each type gets underwritten differently.
Older single-family homes. Some are original; many have been remodeled more than once. Appraisers and inspectors look hard at these homes: foundation movement, older electrical, roof age and any additions that may not have been permitted. None of that blocks a loan, but it can add conditions. If the inspection turns up repairs you plan to tackle, a rehab loan can fold the work into the financing.
Infill and “two homes on one lot.” Austin’s HOME amendments, adopted in December 2023 and in effect since February 5, 2024, allow up to three housing units on lots zoned SF-1, SF-2 or SF-3. That rule has encouraged more duplexes, two-unit and three-unit projects on East Austin lots that once held a single house. For a loan, the question is how the units are owned:
- One lot, one owner, two or three units. This is financed as a 2–4 unit property. If you live in one unit, agency loans can work, and some lenders count part of the other units’ rent toward your income.
- Units split into a condo regime. Many East Austin infill projects divide two homes on a lot into a small condominium regime. The homes look detached, but the lender treats them as condos and reviews the declaration, insurance and any association budget. Small regimes often don’t have the documentation a conventional or FHA review expects. When that happens, a non-warrantable condo loan can still close the deal.
Garage apartments and ADUs. A second unit in back can help you qualify, or it can create a condition. Lenders want to know whether the unit is permitted and how it shows up in the appraisal. Pull the City permit history before you count on ADU rent.
Condos and townhomes. Newer mid-rise buildings and townhome projects near the east-side corridors get a project review: owner-occupancy ratio, reserves, insurance, commercial space and any litigation. We request the HOA questionnaire early so problems surface before your option period ends.
Small multifamily. Duplexes, triplexes and fourplexes near the corridors draw both owner-occupants and investors. Five units and up move out of residential lending; see DSCR loans for 5–8 units.
Flood risk. Several East Austin neighborhoods sit along creeks such as Boggy Creek. Check the address on the FEMA Flood Map Service Center before you write an offer. If the home is in a special flood hazard area, the lender will require flood insurance, and that premium goes into your payment.
East Austin rules that shape a purchase loan
| Rule | What the City says | Why your lender cares |
|---|---|---|
| HOME Phase 1 | Up to three units on SF-1, SF-2 and SF-3 lots (adopted Dec 7, 2023; applications from Feb 5, 2024) | A second or third unit can turn a house into a 2–4 unit loan |
| HOME Phase 2 | A single-family home on lots of at least 1,800 sq ft but under 5,750 sq ft (citywide from Nov 16, 2024) | A split lot finances as its own property |
| Addresses | Every dwelling in a two- or three-unit use needs its own address | Appraisers and title need each unit identified |
| Deed restrictions | Applicants must check them; HOME doesn’t override them | A restriction can block the extra unit you priced in |
Austin and Travis County prices (September 2026)
ZIP-level medians for 78702, 78721 and 78722 aren’t in the public Unlock MLS release, so the table below shows the published citywide and countywide figures. Ask your agent for an MLS pull on the specific ZIP and price band you’re shopping.
| Market | Median sale price | Change vs. Sept 2025 | Closed sales | Months of inventory | As of |
|---|---|---|---|---|---|
| City of Austin | $570,958 | +4.2% | 777 | 5.4 | September 2026 |
| Travis County | $497,400 | +2.6% | 1,031 | 5.8 | September 2026 |
| Austin–Round Rock–San Marcos metro | $421,000 | +1.4% | 2,223 | 5.4 | September 2026 |
Source: Unlock MLS, September 2026 Central Texas Housing Report (released Oct 13, 2026). Metro-wide, homes closed at an average of 92.7% of their original list price in September 2026.
Price matters for the loan type. In 2026 the baseline conforming loan limit for a one-unit home is $832,750 in most of the country (FHFA). A loan above the limit for Travis County is a jumbo loan with its own rules; see our jumbo loan page.
Local historic districts in East Austin
Two City local historic districts sit in East Austin, per the City’s historic districts list: Robertson/Stuart & Mair (123 principal buildings, 85 contributing), which the City ties to the Robertson Hill community and East Avenue (now I-35), and Rogers-Washington-Holy Cross (55 properties, 47 contributing), with postwar Ranch-style homes on Maple, Givens and Werner avenues. Exterior changes there go through City historic review, so plan any renovation loan around that step.
Separately, the City sends demolition permits for residential structures 45 years or older to the Historic Preservation Office, so a teardown-and-rebuild on an older East Austin lot can take longer than the construction budget alone suggests.
Property taxes and HOA dues in East Austin
Most East Austin homes inside the City of Austin are taxed by the City, Travis County, Austin ISD, Austin Community College and Central Health. Your exact list of taxing units is on the Travis Central Appraisal District record for the address. The City of Austin’s adopted rate for fiscal 2026–27 is $0.579948 per $100 of taxable value. That’s one line of the bill; add the others from the TCAD record before you estimate a payment.
Three East Austin tax notes come up often:
- Recently rebuilt homes. A new or heavily remodeled house is reappraised on its improvements, so last year’s tax bill on the listing can understate what you’ll pay.
- Homestead exemption. If you live in the home, file your homestead exemption with TCAD after you close. It lowers the taxable value for school taxes and others. See the Texas Comptroller’s exemptions page.
- Condo regime dues. Small two-unit regimes may have low or no dues but still require shared insurance. Larger buildings have monthly HOA dues that count in your debt-to-income ratio or DSCR.
Loan options that fit East Austin
Agency loans for owner-occupants
For buyers who’ll live in the home, conventional, FHA and VA loans are usually the starting point.
- Conventional loans for single-family homes, many condos and 2–4 unit properties.
- FHA loans for buyers who want a lower down payment. Condos must meet FHA project rules.
- VA loans for eligible veterans and service members, including 2–4 unit properties when you live in one unit.
- First-time buyer? Start on our first-time home buyer page.
Non-QM and DSCR loans for East Austin
East Austin has a lot of people whose income doesn’t fit a W-2 box: musicians, designers, restaurant owners, contractors and investors. Non-QM loans qualify you on something other than tax-return income. Terms vary by lender.
- Bank statement loans for self-employed creatives and business owners whose write-offs shrink their taxable income.
- P&L loans that qualify on a profit-and-loss statement.
- DSCR loans for rentals, duplexes and ADU lots, qualifying on the property’s rent rather than your income. Austin short-term rentals need a City license; see the STR section on that page.
- Non-warrantable condo loans for small condo regimes and buildings that don’t meet agency project rules.
- Asset depletion, ITIN and foreign national programs for buyers with savings but uneven income, borrowers who file with an ITIN, and buyers who live outside the U.S.
Which loan fits your East Austin purchase
| If you are… | Program | How income is shown | Rental? | Notes |
|---|---|---|---|---|
| Living in one side of a duplex | Conventional or FHA (2–4 unit) | W-2s, pay stubs, tax returns | Yes, other unit | Travis County 2026 two-unit conforming limit is $1,066,250 (FHFA) |
| Buying a rental with two or three units | DSCR loan | Property’s rent vs. payment | Yes | No personal income used; terms vary by lender |
| Musician, artist or gig worker | 1099 or bank statement loan | 1099s or 12–24 months of deposits | Possible | Loan sizes vary by lender |
| Restaurant or shop owner | P&L loan | CPA- or preparer-signed P&L | Possible | Some lenders also ask for bank statements |
| Adding a unit to a lot you own | Construction loan or DSCR cash-out | Varies by program | Yes | Permits and a budget usually required |
FICO, down payment, rate and reserve requirements vary by lender. We compare them across more than 50 wholesale lenders.
Non-QM loans
- DSCR loans: qualify on rent, not personal income.
- Bank statement loans: 12 or 24 months of deposits instead of tax returns.
- P&L loans: a profit-and-loss statement signed by a CPA or tax preparer.
- 1099 loans: contractor income from 1099 forms.
- DSCR second mortgages: pull equity from a rental without refinancing the first lien.
- ITIN loans: for borrowers who file taxes with an ITIN.
Agency loans
Conventional, FHA and VA loans follow agency guidelines. See conventional, FHA and VA loans.
How CapFi shops more than 50 wholesale lenders for East Austin buyers
A bank gives you its own rules. A broker can match the property to a lender whose rules fit it. In East Austin that matters, because the same lender that loves a fee-simple bungalow may decline a two-unit condo regime next door.
Here’s how we work a file:
- Property first. We look at how the property is owned (fee simple, condo regime, 2–4 unit), whether any ADU is permitted, and the flood map.
- Income second. W-2, self-employed, rental income or assets: we pick the documentation path that shows your income most completely.
- Shop. We compare programs across more than 50 wholesale lenders and show you the options side by side. Any rate we quote comes with its APR.
- Manage to close. We order the HOA or regime documents early, keep your agent updated and work the appraisal and underwriting conditions.
Agency loan costs
No lender fees on agency loans (conventional, FHA, VA). Third-party costs may apply.
East Austin home loan FAQs
Can I buy an East Austin home with an ADU as a rental?
Yes, in many cases. If you live in the main house, some lenders count part of the ADU rent toward income. If you rent both units, a DSCR loan qualifies on the property’s rent instead of your tax returns. CapFi compares both paths across more than 50 wholesale lenders before you commit.
Why are some East Austin houses financed as condos?
Many infill lots are split into small condominium regimes, so two detached homes share one lot and a recorded declaration. Lenders review those homes as condos, including the declaration, insurance and any budget. If a regime doesn’t meet agency rules, a non-warrantable condo loan may still work. Terms vary by lender.
How many homes can be built on one East Austin lot?
Under Austin’s HOME amendments, in effect since February 5, 2024, lots zoned SF-1, SF-2 or SF-3 can have up to three housing units, subject to the City’s site standards. How those units are owned, as one property or a condo regime, decides which loan fits each one.
Do I need flood insurance in East Austin?
Only if the home is in a FEMA special flood hazard area; then the lender requires it. Homes near East Austin’s creeks are the ones to check first. Look up the address on the FEMA Flood Map Service Center before you write an offer, and price a policy either way.
Can I buy a duplex in East Austin and live in one side?
Yes. Living in one unit of a two- to four-unit property lets you use conventional, FHA or VA financing, and many lenders count part of the other unit’s expected rent toward your income. The appraiser’s rent estimate or existing leases usually support that figure. Requirements vary by lender and program.
Can self-employed buyers get a mortgage in East Austin?
Yes. If your tax returns show enough income, a conventional loan may work. If write-offs lower your taxable income, a bank statement or P&L loan qualifies you on deposits or business statements instead. CapFi compares those non-QM options across more than 50 wholesale lenders, and terms vary by lender.
Can I split an East Austin lot and finance a new home on the smaller piece?
Possibly, if the lot fits HOME Phase 2. Citywide since November 16, 2024, Austin accepts applications for a single-family home on a lot of at least 1,800 square feet but under 5,750 square feet. Dividing an existing lot takes a subdivision application. Once platted, the new lot finances as its own property, often with a construction loan first; terms vary by lender.
Can one loan cover all three homes on an East Austin HOME lot?
Yes, if one owner holds the single lot. A three-unit property can finance as a 2–4 unit loan, and Travis County’s 2026 conforming limit for three units is $1,288,800, per FHFA. The City requires a unique address for every dwelling in a two- or three-unit use, which also helps appraisal and title identify each unit.
Can I short-term rent part of my East Austin duplex?
Only with a City license. Austin defines a short-term rental as a stay under 30 consecutive days, licenses last two years, and on a single-family site an operator may license up to two units. Since July 1, 2026, platforms must remove unlicensed listings. DSCR lenders may treat nightly income differently from a lease, so terms vary by lender.
Are any East Austin streets in a local historic district?
Yes, a few. The City’s historic-district list includes Robertson/Stuart & Mair, tied to the Robertson Hill community near today’s I-35, and Rogers-Washington-Holy Cross along Maple, Givens and Werner avenues. Being in one doesn’t change the mortgage itself, but exterior work needs City review, so check the address before budgeting a renovation loan.
Will an older East Austin house I plan to replace need historic review?
Yes, if the house is 45 years old or older. Austin routes residential demolition permits at that age to the Historic Preservation Office, which can send potential landmarks to the Historic Landmark Commission. Build that review into the schedule for a construction or bridge loan, because lenders want a realistic timeline before funding.
I gig and freelance around East Austin’s music scene. Which loan reads my income?
A 1099 or bank statement loan usually does. Some non-QM lenders qualify contractors on one or two years of 1099 forms, and others average 12 or 24 months of deposits. Which path shows more income depends on your expenses. We compare both across more than 50 wholesale lenders.
I own an East Austin restaurant. Can a P&L loan document my income?
Yes. A P&L loan qualifies business owners on a profit-and-loss statement prepared or signed by a CPA or licensed tax preparer, usually covering 12 or 24 months, instead of tax returns full of deductions. Some lenders also ask for business bank statements to support the figures. Down payment and loan-size rules vary by lender.
Can I tap my East Austin rental’s equity to build a second unit?
Often, yes. A DSCR cash-out refinance or DSCR second mortgage can draw on a rental’s equity based on its rent, and HOME Phase 1 allows up to three units on SF-1, SF-2 and SF-3 lots. Lenders usually want permits and a budget before funding. Seasoning and limits vary by lender.
More Austin neighborhoods
Back to our Austin mortgage broker page.
Talk with a broker who knows Austin
Call or text (512) 593-1336, Monday through Saturday, 9 AM to 7 PM, or visit our office by appointment in Austin. You’ll talk with me or my partner Clay Wilson, not a call center. Rated 4.9 on Google (81 reviews) · 5.0★ on Zillow (16) · 100% recommend on Facebook (42).
- CapFi Lending LLC
- Dustin Edwards, NMLS 577050
- Clay Wilson, NMLS 1849979
- NMLS Consumer Access
- Equal Housing Opportunity.
This is not a commitment to lend. All loans are subject to credit approval, underwriting and property eligibility. Program terms vary by lender and can change.
Sources (checked Oct 23, 2026)
- https://www.austintexas.gov/development-services/home-amendments (HOME Phase 1: up to three units on SF-1/SF-2/SF-3)
- https://services.austintexas.gov/edims/document.cfm?id=435381 (HOME Part I effective Feb 5, 2024)
- https://www.austintexas.gov/council/2023/20231207-spec (Ordinance No. 20231207-001)
- https://msc.fema.gov/portal/home (flood maps)
- https://www.unlockmls.com/news/september-2026-central-texas-housing-report (September 2026 prices)
- https://www.fhfa.gov/news/news-release/fhfa-announces-conforming-loan-limit-values-for-2026 (2026 baseline $832,750)
- https://traviscad.org/ (taxing units per address)
- https://www.austintexas.gov/budget-excellence/tax-rates (City of Austin FY2026–27 rate)
- https://comptroller.texas.gov/taxes/property-tax/exemptions/ (homestead exemption)
- City of Austin Development Services, “HOME Amendments,” https://www.austintexas.gov/development-services/home-amendments, accessed Oct 25, 2026.
- City of Austin Development Services, “Deed Restrictions and Development,” https://www.austintexas.gov/development-services/deed-restrictions-and-development, accessed Oct 25, 2026.
- City of Austin Historic Preservation Office, “Historic Districts,” https://www.austintexas.gov/planning/historic-preservation/historic-designation/historic-districts, accessed Oct 25, 2026.
- City of Austin Development Services, “Demolition Permit,” https://www.austintexas.gov/development-services/demolition-permit, accessed Oct 25, 2026.
- City of Austin, “Short-Term Rentals,” https://www.austintexas.gov/department/short-term-rentals, accessed Oct 25, 2026.
- FHFA, 2026 full county conforming loan limit list (Travis County and Williamson County rows), https://www.fhfa.gov/data/conforming-loan-limit, accessed Oct 25, 2026.
- Texas Comptroller, “Property Tax Exemptions” (§11.13(b) and (c) school homestead amounts), https://comptroller.texas.gov/taxes/property-tax/exemptions/, accessed Oct 25, 2026.