Austin, TX 3.5% DownFlexible Credit

FHA Loans in Austin and the Suburbs

Austin prices are high — but FHA with down payment assistance is still your fastest path to owning.

Austin proper is expensive, but the suburbs tell a different story. Cedar Park, Round Rock, Kyle, and Buda all have FHA-eligible homes under $400,000 — and that's where most of my Austin-area FHA clients end up. The 2025 FHA loan limit for Travis County is $524,225, which covers a solid range of Austin homes. For buyers earning $80K–$120K in tech, healthcare, or city jobs, FHA often outperforms conventional at 5% down because the rate can be lower. Let me model both options for you.

Local Expert Insight

FHA Loans in Austin — What You Need to Know

Common Challenges — and How I Solve Them

Austin home prices push many buyers over the FHA limit in Travis County
We look at Williamson County (Cedar Park, Round Rock, Georgetown) and Hays County (Kyle, Buda) where prices are lower and FHA fits perfectly. I know both markets well.
Travis County property taxes plus FHA MIP make the monthly payment feel unmanageable
I model the complete payment on every scenario — not just principal and interest. On a $450K Austin home, taxes add ~$825/month. I show you the real number, not the teaser number.
Austin's competitive market means buyers worry FHA offers will lose to conventional
Seller preference for conventional is a real thing in Austin, but it's not universal. In the $350K–$500K range in the suburbs, FHA offers win all the time with the right pre-approval letter and experienced listing agents.
Local Insider Tip

If you're a first-time buyer in Austin priced out of Travis County, look seriously at Pflugerville, Cedar Park, and Leander. Commute is manageable and prices are 20–30% lower. FHA and TSAHC DPA can get you in with minimal cash.

Approval Strategy for Austin Buyers

Austin FHA approvals for salaried tech workers are usually clean. Self-employed or 1099 workers need two years of tax returns — I work with those too. For buyers with complex income, I start with a full income analysis before pulling credit so we know exactly where we stand.

Rates & Pricing

FHA rates in Austin are competitive — often 0.125–0.25% lower than conventional with 5% down. MIP on a $400K loan adds ~$155/month. Suburban buyers in Kyle, Buda, and Round Rock often find FHA more affordable than renting.

FHA Loans in Austin — FAQs

It depends on the condo project. The condo complex must be FHA-approved. Many Austin condo buildings are approved — I can check any specific building for you quickly. If the building isn't approved, we look at alternatives like conventional 3% down or HomeReady.

FHA and Fannie Mae's HomeReady/Freddie Mac's Home Possible are all low-down-payment options. HomeReady/Home Possible can remove PMI when you reach 20% equity — FHA MIP is often permanent for the life of the loan if you put less than 10% down. In Austin's appreciating market, going conventional sometimes makes sense long-term. I model both.

Yes, and builders in Kyle and Buda love FHA buyers because inventory is plentiful. New construction FHA in Hays County is one of my strongest use cases — I work with buyers from contract through closing with the builder's timeline in mind.

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Rodolfo Toscano | NMLS #2248652 | The Big Mortgage | Licensed in Texas (TXSML) | Equal Housing Lender | This is not a commitment to lend. All loans are subject to credit approval and property qualification.

Get Pre-Approved for FHA in Austin

Free consultation. I'll tell you exactly what you qualify for in Austin and what your real monthly payment will be. Pre-approval in 24 hours.

NMLS #2248652 · Licensed in Texas · Response in 24 hours or less