I talk to people all the time who want to buy a home in the Austin area. It’s one of the strongest real estate markets in the country, and most people realize the many benefits of owning your own home. However, with mortgage rates and prices rising rapidly, some people think owning a home in Central Texas is becoming out of reach.
Many of the people I speak with think they need a lot of money to buy a house..20% or more! Depending on where you want to live, it may not take as much money as you think.
If you are willing to live just outside the city limits, there is a great 100% financing program you may not know about. It’s called the “U.S. Department of Agriculture Rural Development Loan” (USDA for short). It’s designed to help prospective homeowners get into a home of their own with very little cash. It offers 100% financing, and you can even roll the closing costs into the loan if the appraisal value allows it. This can be a great way to break in to the real estate market while prices are still relatively affordable.
Eligible areas around Austin for this great program include Florence, Liberty Hill, Jonestown/Lago Vista, Bee Cave, Dripping Springs, Driftwood, Hays Country, Cedar Creek, Bastrop, Manor/Elgin and the Hutto/Taylor area. Here is a link to the USDA eligibility map. Simply plug in a proposed address and it will show you if the property is eligible for 100% USDA financing.
This program does have certain parameters, requirements and limitations. For example, for a family of four or less in this area, you can’t make more than approximately $99,000 per year in total household income. There is also home buyer education required as part of the approval process. However, it’s a great option for people wanting to own a home without a big up front investment.
If you or someone you know would like to own a home without investing a lot of cash and you’re willing to drive a little further to do so, please let me know. I’d love the opportunity to talk and find out how this (or some of our other low-down payment loan options) might help. There’s no cost or obligation to talk and have me custom-design a path to home ownership for you. I love helping Texans find creative solutions to owning real estate!