How Much Do You Need to Buy a Home in Austin, Texas?
How Much Do You Need to Buy a Home in Austin, Texas?
Are you wondering, "How much do you need to buy a home in Austin, Texas?" Whether you're relocating, buying your first home, or investing in real estate, understanding the true cost of homeownership in Austin is key.
Hi, I'm Colt Yancey, an Austin Texas Realtor with Teamly Realty. I'm here to break down the real numbers, from down payments and closing costs to monthly payments and beyond. Let's dive in.
The Median Home Price in Austin, Texas
According to the most recent data from Unlock MLS (February 2025), the median home price in Austin, Texas sits around $450,000. That figure can vary depending on the area. For example:
Central Austin tends to be more expensive, with prices often exceeding $700,000
North and South Austin homes typically range between $375,000 to $525,000
Outlying suburbs like Manor or Buda can offer homes under $350,000
Knowing where you want to buy is the first major step to estimating your homebuying budget.
Down Payment Requirements
Most buyers in Austin, Texas put down between 3% and 20% of the purchase price. Here's what that looks like on a $450,000 home:
3% down (typical for first-time buyers using conventional or FHA loans): $13,500
5% down: $22,500
20% down (to avoid PMI): $90,000
The amount you'll need depends on your loan type and financial profile. As a licensed Austin Texas real estate agent, I can help connect you with trusted local lenders to determine your best options.
Closing Costs in Austin
In addition to your down payment, you should budget 2% to 5% of the purchase price for closing costs. For a $450,000 home, that equates to:
Estimated closing costs: $9,000 to $22,500
These include lender fees, appraisal, title insurance, escrow fees, prepaid taxes, and homeowners insurance.
Monthly Mortgage Payments in Austin
Your monthly costs will vary based on your down payment, loan terms, and interest rate. Here is an example:
Home price: $450,000
Down payment: $22,500 (5%)
Loan amount: $427,500
Interest rate: 6.5%
Term: 30 years
Estimated monthly payment (principal + interest): $2,700
Add:
Taxes and insurance: ~$800
PMI (if <20% down): $150 to $250
Total monthly payment: ~$3,650
This is a ballpark. Reach out and I’ll connect you with Austin lenders who can give you a precise breakdown.
Additional Costs to Consider
Don’t forget about:
Earnest money deposit (1% of price, typically): $4,500
Home inspection: $350 – $700
Moving costs: Varies
Repairs or furniture: Budget at least $2,000 – $10,000 depending on your needs
How Much Money Should You Save?
To comfortably buy a home in Austin, Texas, many buyers need to have:
Down payment: $13,500 – $90,000
Closing costs: $9,000 – $22,500
Emergency buffer: $5,000 – $15,000
Total recommended savings: $30,000 to $120,000
This doesn’t mean you have to be rich to buy a home here. Plenty of programs exist to help first-time buyers and low- to moderate-income buyers. Let me help you navigate them.
Austin, Texas Housing Market Trends in 2025
As of Q1 2025:
Average days on market: 66, with a median of 29
Inventory is up, giving buyers more options and better negotiating power
Sellers are often offering concessions (like covering closing costs)
It’s a more balanced market than we’ve seen in recent years. If you’re thinking about buying, this may be your opportunity to enter the Austin housing market before rates drop again and competition heats up.
Work With a Local Expert
Every buyer’s situation is unique. Whether you’re buying your first home or relocating to Austin, Texas, having the right real estate agent by your side can make all the difference.
I'm Colt Yancey, a Realtor with Teamly Realty in Austin, Texas. I help buyers like you make smart, confident decisions. From helping you estimate your costs to negotiating a winning offer, I’m here to guide you every step of the way.
FAQs About Buying a Home in Austin, Texas
How much money do I need to buy a house in Austin, Texas?
Most buyers should save between $30,000 and $120,000 depending on their loan type, down payment, and closing costs.
Is $100,000 enough to buy a home in Austin?
Yes, in many cases. With a 5% to 10% down payment and some closing cost assistance, $100,000 can comfortably cover your upfront expenses.
What credit score is needed to buy a house in Austin?
Most lenders require a credit score of 620 or higher. FHA loans may allow for scores as low as 580.
Can I buy a home in Austin with no money down?
Yes, through USDA or VA loan programs if you qualify. Some local down payment assistance programs may also help reduce your upfront cost.
How much is a mortgage payment on a $450k house in Austin?
With 5% down and current rates, expect to pay around $3,600 to $3,700 monthly, including taxes, insurance, and PMI. Everything depends on the area's property taxes, interest rates, and possible sellers' concessions, which could change this number BIG time.
This content is provided for general informational purposes only and should not be considered legal, financial, tax, or investment advice. I am not an attorney, accountant, or financial advisor. Real estate laws and market conditions vary by location and are subject to change without notice. All information should be independently verified. Always consult with a licensed attorney, tax professional, or financial advisor for guidance specific to your situation.
