FHA mortgage insurance premiums are set by HUD and are the same at every lender, so compare FHA lenders on rate, lender fees and points using their Loan Estimates.
Median owner-occupied home value (Census ACS 2020–2024 5-year): $555,300
FHA share of mortgage originations (Travis County, HMDA 2025): 9.7%
Conventional share of mortgage originations (Travis County, HMDA 2025): 85.3%
Median real estate taxes paid by homeowners (Travis County, ACS 2024 5-year): $7,727 a year
Data from U.S. Census Bureau, HMDA
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 owner-occupied home value in Austin is $555,300 (Census ACS 2020–2024 5-year).
In 2025, 85.3% of Travis County mortgage originations were conventional loans, 9.7% were FHA and 4.7% were VA (CFPB/FFIEC HMDA). 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.
Travis County Data for Austin Home Buyers
Lenders reported 20,147 mortgage originations in Travis County in 2025, and 2.0% of the county's residential structures are in a FEMA special flood hazard area.
Travis County, TX: originations, flood exposure, income and population, by source and date
What is the average mortgage rate in Austin right now?
Austin, TX borrowers price against the national 30-year fixed average: 7.28% in Freddie Mac's Primary Mortgage Market Survey for the week of October 1, 2026, with the 15-year fixed at 6.60%. Local quotes vary by credit score, down payment, loan type and lender.
What credit score do I need for a mortgage in Texas?
In Texas, conventional loans generally require a minimum score of 620 (Fannie Mae's floor for manually underwritten fixed-rate loans), while FHA's program minimum is 580 with 3.5% down (500–579 with 10% down); many lenders set their own FHA floor above that. Conventional loans above 740 typically receive the best rates — improving your score by even 40 points before applying can lower your rate by 0.25–0.5%.
How much down payment is typical in Austin?
First-time buyers in Austin commonly put down 3.5% on FHA loans or 5–20% on conventional loans. The My First Texas Home — up to 5% down payment assistance for qualifying first-time buyers. A 20% down payment eliminates PMI and reduces your monthly payment, but is not required.
What are Texas-specific first-time buyer programs?
Texas offers the My First Texas Home — up to 5% down payment assistance for qualifying first-time buyers. These programs typically have income limits of 80–120% of area median income and require completion of an HUD-approved homebuyer education course. Ask your lender to run a combined FHA + assistance program quote alongside a conventional loan.
FHA vs. conventional in Austin — which is more common?
Conventional loans are far more common: in 2025, 85.3% of Travis County mortgage originations were conventional and 9.7% were FHA (CFPB/FFIEC HMDA). FHA loans are easier to qualify for but carry an upfront MIP fee (1.75% of loan amount) plus annual MIP. Once you have 20% equity, conventional loans allow PMI cancellation — making them more cost-effective long-term for buyers who can qualify.
How long does closing take in Texas?
The typical mortgage closing timeline in Texas is 38–45 days from application to closing. Pre-approval before making an offer can shorten this to 30–35 days. Delays most often occur at appraisal, title search, or underwriting — your loan officer can flag issues early if you provide all documentation upfront.
How Much Down Payment for a $555,300 Home in Austin?
For a $555,300 home in Austin (the city's median owner-occupied home value, Census ACS 2020–2024 5-year), an FHA loan requires just 3.5% down, which equals roughly $19,000 before closing costs. This accessibility explains why FHA financing appeals to many Austin homebuyers who want to enter the market without accumulating years of savings for a conventional 20% down payment.
