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Today’s Rates for First Time Homebuyers in Austin

Friday, February 3, 2023

Mortgage rates are at 3.00% for the 30 year fixed loan program and at 2.56% for the 15 year fixed. As for variable rates, the 5/1 ARM rate currently stands at 4.56%. Check out FHA and VA rates as well if you are doing low or no down payments.

Austin First Time Buyer Home Loan Programs

Interested in a buying your first home in Austin Texas, and curious about your financing options? Explore everything from government-backed and first time homebuyer assistance loans to mortgage tax credits and more in Lender411's comprehensive guide to Austin mortgage. 

Austin FHA Loans

FHA loans are insured by the Federal Housing Administration, and have long been a favorite option for Austin first time homebuyers and homebuyers with smaller savings, thanks to their low down payment requirements and lenient credit standards. Take a look at current FHA loan facts and requirements:

  • Down payment, loan-to-value (LTV): 3.5%, 96.5%.
  • Credit score minimum: Typically 580 or greater. 
  • Debt-to-income (DTI): Typically 45-50% or less. 
  • Upfront mortgage insurance of 1.75% the base loan amount is required. 

Annual mortgage insurance premiums of varying percentage are also required, and paid monthly. New FHA borrowers, however, will receive annual MIP rates of half a percent lower than the original rate, typically 1.35%.

Austin First Time Homebuyer Loan Programs

If you live within the Austin city limits, you are hopefully eligible for the Down Payment Assistance Program and/or the Community Land Trust:  
Down Payment Assistance Program
This will allow you to have a covered down payment with a 0% interest loan. With this program, you will be able to qualify for up to $40,000 of assistance; you will be able to have the down payment, closing costs, and pre-paid home purchase expenses paid. There are two types of Down Payment Assistance Programs: 
  • Standard DPA.
  • Shared Equity DPA. 
The only difference between the two is that the former has a $14,999 cap and the latter has a $40,000 cap. In order to be eligible, you must not have owned a home in the last three years or been divorced. You must purchase a townhome, condo, or single-family home within the Austin City limits. You also must have completed HousingSmarts and have a household income less than 80% of Austin’s Median Family Income.
To learn more about income limits and your eligibility for the Down Payment Assistance Program, visit the official DPA page.
Community Land Trust
The Community Land Trust program allows first time homebuyers to buy a home and lease the land. This makes the homebuying process a lot cheaper as land trust homes are much more affordable. In order to be eligible for this program, borrowers must:
  • Buy a single family home in Austin.
  • Have a household income of 80% or less than Austin’s median income.
  • Be first time homebuyers.
  • Completed HomeSmart.
Click for more information about the Community Land Trust program.

Statewide Grant and Assistance Programs

The Texas Department of Housing and Community Affairs (TDHCA) offers the My First Texas Home loan program, which offers a low down payment, fixed-rate mortgage with down payment and closing cost assistance for as much as 5% of the loan. Regional income and property price limits apply. 

The My First Texas Home option can be used in conjunction with the Mortgage Credit Certificate program, which allows participants to decrease the federal withholding in every paycheck, better enabling them to make a monthly mortgage payment. Annual savings can go up to $2,000, or about $166 per month. Participants must be purchasing in a targeted area

user suit Lenders in: Austin, Texas.

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