By Tim Landy · October 3, 2026
Cash to close is more than the down payment. A first house in Austin also needs earnest money, an option fee, inspections, lender fees, and prepaid taxes and insurance. Assistance programs can help with part of that. They do not erase it.
“First-time” does not always mean you have never owned a house. Some programs mean you have not owned in the last three years. Read the definition on the program page before you count on the money.
We will not publish another brokerage’s cash-to-close table. Your number comes from a loan estimate on a specific price. The first meeting, before any tour, is here: why the first meeting matters.
Cash to Close Is More Than the Down Payment
Down payment, plus closing costs, plus prepaids, plus the option fee and earnest money you write up front. Ask the lender for a loan estimate. Do not budget from a round number online.
How the Texas Option Period and Earnest Money Work
Earnest money shows you are serious and sits in escrow. The option fee buys a few days to inspect and walk away for any reason. The option fee is usually paid to the seller and is not refunded. The days and the amounts are negotiated in the contract.
What “First-Time” Means for Assistance Programs
Check the definition. A buyer who owned a house years ago can still qualify for some help. A buyer who owns now usually does not. For example, TDHCA’s lender guide for My First Texas Home and Texas Mortgage Credit Certificates defines first-time buyers as people who have not owned and occupied a primary residence during the last three years, with exceptions for qualified veterans and certain targeted areas.
Where to Check City of Austin, TSAHC, and TDHCA Programs
Start with the official pages, not a screenshot.
- City of Austin homebuyer resources
- TSAHC, Austin and Central Texas: Homes for Texas Heroes (for eligible professions such as teachers, police officers, firefighters and veterans) and Home Sweet Texas. Assistance can come as a grant or a deferred, forgivable second lien. TSAHC lists a 620 minimum credit score plus income requirements.
- TDHCA homebuyer programs: My First Texas Home (first-time buyers), My Choice Texas Home (no first-time requirement), and the Texas Mortgage Credit Certificate.
Income limits, price caps, and grant amounts change. Use only what those pages say on the day you apply. If a page does not list a number, do not assume one.
Taxes and Insurance Inside the Approval, Not After It
The payment the lender approves should already include taxes and insurance. An approval that ignored an Austin tax bill is not finished. There is no single Austin tax rate.
The school homestead exemption is a separate filing after you own the house and live in it. Texas requires school districts to provide a $140,000 residence homestead exemption (Texas Comptroller). You apply through the appraisal district in your county.
What We Do in the First Meeting Before You Tour
Budget, must-haves, and a walk-away, then houses. That order is the plan before you tour. If you are moving from out of state, start with what to budget before you tour.
Frequently Asked Questions
How much money do I need to buy a house in Austin for the first time?
Enough for a down payment, closing costs, prepaids, earnest money, and an option fee. The total depends on the price, the loan, and what you negotiate. Get a loan estimate. We will not print one cash-to-close dollar amount and call it standard.
What is a Texas option fee?
A fee you pay for the right to terminate the contract for any reason during the option period. The amount and the number of days are in the contract. It is usually not refunded if you walk away. It is separate from earnest money.
Who pays for the survey and the title policy?
The contract decides. In many Austin-area deals the seller pays for the owner’s title policy, and the survey is negotiated. Custom is not a statute. Read your contract.
What down payment assistance exists in Austin?
City of Austin, TSAHC, and TDHCA programs are the places to start. Each has its own income limits, price caps, and rules. Open the official page on the day you apply. Do not rely on a dollar amount copied from an old post.
Do I have to be a first-time buyer to get help?
Sometimes. Some programs define first-time as “have not owned in the last three years,” not “never owned.” Read that line on the program you want. Owning a house right now usually means you do not qualify.
Should I get pre-approved before I look?
Yes. A pre-approval that includes taxes and insurance tells you which houses are real. Looking first and doing the math later is how people fall for a payment they cannot carry. Start on the buyers page.
Ready to start? Talk with our team or call / text 512-693-8578.