Home Buying in Round Rock>Question Details

KH, Home Buyer in Pflugerville, TX

How much money do you have to put down to buy a home these days?

Asked by KH, Pflugerville, TX Mon Jan 19, 2009

My husband and I are interested in purchasing our first home in either Round Rock or Austin, TX. We plan to relocate to this area soon and purchase a home hopefully this summer.

How much money do you have to put down to get a loan in this market in these areas? Do they look at percentage of the asking price of the home and, if so, how much? Thank you!

Help the community by answering this question:


Hello Mrs. Hill and great question you have.

Yes, a percentage of the sales price is used to determine the down payment. The down payment could range from 3.5% up to 20%-etc (there may be no down payment required if that loan program does exist) depending on which type of loan you take out like Conventional, FHA, VA, etc.

There just may be a deal for you also since you are a first time home buyer.

But first, here is what I would do. Purchasing a home is a little different than buying a car. When you go to buy a car, you go to the lot, pick one out and then find a banker to finance it. The process of buying a home is just a little different. Talk with a banker and/or mortgage company first and find out what you qualify for. After you know what you can spend, go hire a REALTOR® (who won't charge you any fees) and find that perfect home.

Maybe your first home will not be your dream home. So what! Live in it for a couple of years, build some equity (and your credit) in it and then sell or lease it. Then go invest into the home of your dreams.

What other questions do you have that I can answer?

At your service!

Jeffrey Nyland
512 626-8552
1 vote Thank Flag Link Mon Jan 19, 2009
Hi Mrs. Hill,

First off congratulations on making the first step towards home ownership, deciding where to live. If have already chosen Round Rock, I believe you are ahead of the curve on this one. You would be hard pressed to find a finer community anywhere in America.

Second, expect to bring at least 8% of the sales price to walk away with a house these days. Yes it is true you can play and tweak the numbers when you narrow your search, but it is what it is. No matter how you go, you will be asked to pay down payment, lender fees such as mortgage insurance, appraisal, loan origination, processing, survey, etc., title fees and prepaids for taxes and insurance. A vet status, good credit score higher than 620, and more down payment money will help lower the risk and fees. The good news is that often times I can help my buyers by negotiating the seller to pay some of these costs.

You can generally expect to have a principal, interest, taxes, and insurance (PITI) payment of roughly 1% of the loan amount.

These are rough numbers, but should give you an good ball park of what to expectin the early going of a home search.


0 votes Thank Flag Link Tue Jun 30, 2009
Hi there JT,

Lot of great answers and good information here. While you are researching, take a look at this Central Texas DPA flyer.
0 votes Thank Flag Link Tue Jun 30, 2009
Great Question! And the answer is...it depends! It depends on the type of sales process the house is being sold in. If it's a house in nearby Hutto or other outlying areas, the answer is ZERO using the USDA program. If it's a HUD home (28 new ones came this week), then it's only $100! As other agents answered, the FHA program offers 3.5% and the conventional type loan ranges from 3-20%, depending on your credit score.

The best thing to do is contact a REALTOR, Mortgage Broker or Banker of your choosing to get pre-qualified (or better yet, Pre-approved). You will receive a GOOD FAITH ESTIMATE showing you: 1) Maximum sales price of home you qualify for; 2) estimated monthly payments (principal, interest, tax, insurance, etc.); 3) Down Payment; 4) estimated Closing Costs; 5) interest rate; 6) APR rate.

If you have any other questions, please ask! Feel free to visit my website where you can order two books I've written (my clients get them free) that cover, in depth, this subject.
0 votes Thank Flag Link Thu Mar 12, 2009
It depends on the the amount you are looking to finance. Have you spoken with a lender? As mentioned by other real estate pros, it could be as low as 3.5% - 20% depending several factors. Like our company, there are real estate firms that will pay you 75% of their commission that they receive from the sellers or builders for working exclusively with their real estate firm. This may offset some of the closing cost that is seperate from your down payment.

Gavin St.Louis
Texas Managing Broker
Buyers House Realty
"Showing You The Rebate" http://www.BuyersHouse Realty.com
0 votes Thank Flag Link Wed Feb 18, 2009
There are a variety of answers. If you have good credit then you can put down less and still get a good loan. The more you put down the better rate you will get as well.
As long as you are qualified most sellers will work with you.
Just be sure to get your loan work done ahead of time.
If you are looking for an Agent and I can be of help let me know.
0 votes Thank Flag Link Mon Jan 19, 2009
There are several factors that determine the amount of down payment. There are VA loans that may not require a down payment, USDA requires no down payment if the home is in a USDA area which tends to be more rural. FHA requirements right now are 3.5 percent.

We have several mortgage providers that can work with you to determine the program that works best for you.

Please let us know if we can help with anything else. You can find out more about us at http://www.FreemanCentury21.com

Mike & Starr Freeman
0 votes Thank Flag Link Mon Jan 19, 2009
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