Financing Options
Smarter financing. Real savings.
Understand the programs that can reduce your monthly payment or upfront cost — before you shop.
Money-Saving Programs
Programs that put money back in your pocket
Down Payment Assistance
TSAHC, TDHCA, and local programs — some with $0 down, forgivable options available.
Rate Buy-Down Programs
2-1 or permanent buy-downs to reduce your monthly payment significantly.
Closing Cost Assistance
Lender credits, seller concessions, and grant programs.
Builder Incentives
Rate specials, upgrade credits, and closing cost assistance on new construction.
Loan Types
Every loan option, explained
Conventional
3-20% down, competitive rates, no upfront mortgage insurance with 20% down.
FHA
As little as 3.5% down, flexible credit, up to Travis County FHA limits.
VA
0% down for eligible veterans and active service members. No PMI.
USDA
0% down for eligible rural/outer Austin areas.
Builder Financing
Rate buy-downs and closing credits through builder-preferred lenders.
Jumbo
Loans above conforming limits for luxury Austin properties.
Monthly Payment Examples
What your payment could look like
Sample estimates only — principal & interest; taxes & insurance not included. Actual rates depend on lender qualification.
| Home Price | Down Payment | Rate | Est. P&I |
|---|---|---|---|
| $400,000 | 5% | 6.75% | $2,655/mo |
| $500,000 | 10% | 6.50% | $3,180/mo |
| $650,000 | 20% | 6.25% | $3,605/mo |
Programs FAQ
Money-saving programs — questions answered
Down-payment assistance, rate buy-downs, and the incentives that stack.
What down payment assistance programs are available in Austin?
TSAHC, TDHCA, and the Austin Housing Finance Corporation offer grants and forgivable second liens that can cover 3–5% of the purchase price. Eligibility depends on income limits, purchase price, and property location. Terry pairs you with a preferred lender who confirms eligibility upfront — usually within 24 hours.
What is a rate buy-down and when does it make sense?
A rate buy-down uses seller or builder credits to permanently or temporarily reduce your mortgage interest rate. In today's market, negotiating a 2-1 buy-down or a permanent rate reduction from the builder often saves buyers far more than a small price cut — Terry structures this into the offer whenever the math favors it.
Do you have preferred lenders?
Yes — Terry works with a short list of Austin-area lenders who consistently close on time, price competitively, and understand local down-payment-assistance programs. You are never required to use them, but most clients choose to after comparing quotes.
Can I buy a home with less than 20% down?
Yes. FHA allows 3.5% down, VA allows 0% down for eligible veterans, USDA allows 0% down in qualifying areas, and conventional loans allow as little as 3% down. Terry and your lender will run every scenario so you can compare monthly payment, PMI, and long-term cost side by side.
What loan programs do first-time buyers use most in Austin?
The most common combinations are FHA with down-payment assistance, conventional 97 with lender-paid PMI, and VA loans for eligible service members. Each has trade-offs on rate, mortgage insurance, and seller-credit limits — Terry helps you pick the right fit before you offer.
Loan Details FAQ
Loan details, credit, and combining programs
How buy-downs mechanically work, credit thresholds, and stacking rules.
How does a 2-1 rate buy-down work?
Your rate is reduced by 2% in year 1, 1% in year 2, and returns to the note rate in year 3. Often paid by the seller or builder — lower payments without a higher loan amount.
Can I combine programs?
Yes — many buyers stack a rate buy-down, seller credits, and down-payment assistance in the same transaction.
What credit score do I need?
FHA often works from 580+; conventional typically 620+. Terry's lender partners can pre-qualify you in under an hour.
Disclaimer: Financing programs vary by lender, credit profile, income, and property qualifications. Not a commitment to lend.
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Ready to Make Your Next Move?
Schedule a confidential consultation with Terry today — whether you're buying, selling, or exploring a career with ERA Experts.