*While I am a licensed Realtor®, I am not acting as your Realtor. Every real estate situation is unique, so please consult a professional who can provide advice tailored to your needs.*
One of the biggest myths in real estate is that you need twenty percent down to buy a home. I cannot tell you how many buyers feel defeated because they think homeownership is out of reach. The truth is, in Central Texas, most of our clients put down between three and ten percent, depending on their goals, loan type, and comfort level. Some buyers put down more of course, but twenty percent is absolutely not a requirement.
Let’s break this down so you can shop with confidence.
Central Texas buyers typically use three main loan types. Conventional loans often start at three percent down for well qualified buyers. FHA loans start at three point five percent and are popular with first time buyers because of lower credit score requirements. VA loans offer zero down for eligible veterans and are one of the strongest loan products available.
Your down payment should not wipe out your savings. I tell every buyer I work with that the right down payment is one that supports your life and leaves you breathing room. You want stability, not stress.
Closing costs are a separate line item and usually run around $10,000 to $15,000. These include lender fees, title fees, prepaid taxes, prepaid insurance, and HOA fees if applicable. Most buyers do not know this part yet, but sellers can contribute toward closing costs, which can significantly reduce how much cash you need at the closing table. We have had buyers walk out of closing with checks in hand because of strong negotiations.
Down payment assistance programs have also become more popular recently. These can help with upfront costs and get you into a home sooner. Use the resource that exists specifically to help you – If someone built a bridge for you, walk across it.
Every buyer’s perfect number is different. The best way to get clarity is to work with a lender and a Realtor who will run exact scenarios based on your budget, your comfort level, and your long term goals. When you work with T. Kerr Property Group and the Russ Phillips Team, we break down these numbers in simple, honest terms so you can make empowered decisions.
If you want a personalized breakdown of your down payment options and closing cost expectations across Austin, Georgetown, Round Rock, Hutto, Leander, Liberty Hill, Cedar Park, and surrounding areas, schedule a free consultation or reach out for your customized strategy.
T. Kerr Property Group is proud to be voted top Realtors in Round Rock and Georgetown. They’ve won accolades including: PT50, ABJ Residential Real Estate Award, and have been featured in Real Producers. Most importantly, the T. Kerr Property Group gives back to their community and are recognized experts across Georgetown, Round Rock, Austin, and surrounding areas. Whether you’re buying, selling, or investing, T. Kerr Property Group is here to help you make informed, confident real estate decisions.