FHA makes up 19.8% of Austin originations, with Frost Bank and JPMorgan Chase leading FHA volume — comparing their MIP structures on $298,000 surfaces $1,266+ in first-year MIP cost differences. Always request side-by-side MIP schedules from both Frost Bank and JPMorgan Chase before choosing.
Austin, Texas: 2026 Market Data
📊 LOCAL MARKET DATA
- Median home price: $428,000
- Year-over-year price change: 3.8%
- FHA loan share: 19.8%
- Conventional loan share: 71.2%
- Property tax rate (Travis County): 2.02%
- Top local lenders: Frost Bank, JPMorgan Chase, Wells Fargo
Data from U.S. Census Bureau, HMDA, county assessor
FHA Loans in Austin: 2026 Market Snapshot
If you're considering an FHA loan in Austin this year, it helps to understand where the local market stands. The median home price here sits at $428,000, reflecting a 3.8% increase over the past year. That steady climb means buyers benefit from acting with a clear sense of their budget and financing options before they start touring homes. FHA loans currently make up 19.8% of the Austin market, while conventional loans account for the majority at 71.2%. That gap tells you something useful: FHA financing remains a meaningful path for many buyers, particularly those drawn to its lower down payment flexibility, but it isn't the default route most Austin borrowers take. Whether it's right for you depends on your credit profile, savings, and long-term plans. One factor worth building into your math is property taxes. In Travis County, the rate runs 2.02%, which can add a noticeable amount to your monthly payment on a home near the median price. Don't overlook it when estimating affordability. Finally, shop around. Compare several lenders, ask detailed questions about fees, and read the fine print carefully before committing. A little legwork up front can make a real difference.
Why Austin's 3.8% Year-Over-Year Price Move Changes the Refi Calculus
A 3.8% year-over-year price increase might sound modest, but in Austin it shifts the math for homeowners thinking about refinancing. If you bought near the bottom of the recent dip and your home has appreciated alongside the broader metro, you may have crossed an equity threshold that lets you drop FHA mortgage insurance by refinancing into a conventional loan. That's a bigger deal in Austin than people realize, because FHA's annual mortgage insurance premium sticks around for the life of the loan on most newer FHA mortgages. Reaching 20% equity through appreciation plus your original down payment opens the door to a conventional refi with no PMI. With prices climbing steadily rather than spiking, timing becomes a question of running the numbers carefully. Pull a recent appraisal estimate, check your current balance, and see whether that 3.8% bump pushed you past the line where refinancing actually saves money each month.
