First-Time Home Buying in Austin TX in 2024
Austin remains one of the most dynamic housing markets in the country. After the price peak of 2022, the market has stabilized — creating one of the best windows in years for first-time buyers to enter. Prices in the suburbs are more accessible, seller concessions are more common, and inventory has improved significantly.
What Counts as a First-Time Buyer?
You qualify as a first-time buyer if you have not owned a primary residence in the past 3 years. This opens access to a wide range of down payment assistance and loan programs unavailable to repeat buyers.
Loan Options for First-Time Buyers in Austin
FHA Loan (Most Common)
- 3.5% down payment (with 580+ credit score)
- 10% down with 500-579 credit score
- Mortgage insurance required for the life of the loan (if less than 10% down)
- 2024 Travis County FHA limit: $498,257 standard; $766,550 high-cost
Conventional 97
- 3% down payment
- No monthly mortgage insurance once you reach 20% equity
- Requires 620+ credit score
- Good for buyers with solid credit who want a path to dropping PMI
USDA Loan (Rural Areas)
- Zero down payment for eligible rural areas
- Hutto, Buda, and Kyle edges may qualify — check the USDA eligibility map
- Income limits apply
VA Loan (Veterans Only)
- Zero down, no PMI, best rates
- For eligible veterans, active duty, and surviving spouses
First-Time Buyer Programs in Texas
My First Texas Home (MFTH)
Offered by the Texas Department of Housing and Community Affairs (TDHCA). Provides 30-year fixed-rate mortgages at below-market rates plus up to 5% down payment assistance.
- Income limits apply (vary by county and family size)
- Purchase price limit for Austin metro: up to $396,000
- Must complete a homebuyer education course
Texas Mortgage Credit Certificate (MCC)
Allows first-time buyers to claim a federal tax credit of up to 40% of mortgage interest paid annually, reducing your federal tax bill.
City of Austin Down Payment Assistance
The City of Austin's Homebuyer Assistance Program (AHAP) offers deferred loans for down payment and closing costs to income-qualifying buyers.
Travis County Housing Finance Corporation
Offers mortgage assistance programs for moderate-income buyers in Travis County.
Realistic Budget for First-Time Buyers in Austin 2024
| Area | Median Price | Min. Down (3.5%) | Monthly Payment Est. |
|---|---|---|---|
| Austin Proper | $520,000 | $18,200 | $3,400/mo |
| Round Rock | $390,000 | $13,650 | $2,560/mo |
| Georgetown | $435,000 | $15,225 | $2,850/mo |
| Kyle / Buda | $355,000 | $12,425 | $2,330/mo |
| Hutto | $325,000 | $11,375 | $2,135/mo |
Estimates based on 7.0% rate, 30-year term, taxes and insurance included.
Best Suburbs for First-Time Buyers
For most first-time buyers, the suburbs offer the best combination of value and livability:
- Hutto — most affordable in Williamson County, strong new construction
- Kyle — Hays County value, good schools, south Austin access
- Buda — small-town feel, growing community, I-35 access
- Pflugerville — established suburb with mature neighborhood feel
- Round Rock — premium schools, more expensive but higher long-term value
Frequently Asked Questions
The main programs are My First Texas Home (MFTH) from TDHCA offering up to 5% down payment assistance, the Texas Mortgage Credit Certificate (MCC) for a federal tax credit, and the City of Austin Homebuyer Assistance Program (AHAP) for income-qualifying buyers. A HUD-approved housing counselor can help you identify which programs you qualify for.
Yes — 2024 is better than 2021-2022 for first-time buyers. Prices have corrected 10-15% from the 2022 peak in many Austin suburbs, seller concessions are more common, and inventory has improved. Interest rates are higher than 2021 lows but rates can be refinanced; the equity you build from a lower purchase price is permanent.
From starting your search to getting keys, most buyers take 3-6 months. Getting pre-approved takes 3-7 days, finding a home takes 1-8 weeks in current market conditions, and closing takes 21-35 days after going under contract.
