The housing market in much of Texas is red hot – particularly in certain regions. That mean your money may go further in the small town of Paris than it will in population hot spots like Dallas and Austin. Fortunately, average home prices in Texas are still much more affordable as a whole than many other places nationwide, like California and New York. That is good news if you are a first-time home buyer or otherwise looking to save some cash on your new home purchase. So exactly how much money do you need to buy a house in the Lone Star State?
It’s Getting Harder to Buy a House for Less than $200,000
Many starter home budgets are at or under $200,000. Unfortunately, demand for housing has driven the cost up on many homes, with fewer and fewer options in this previously easy-to-shop price range. If you are in the DFW area, for example, you may have to settle for a smaller home or an undesirable location to achieve this price point, as home builders and market inventory cannot keep up with demand in the growing Metroplex. Move closer to the Texas coast, however, and you will notice the median price for Rockport TX real estate is under $210,000, leaving plenty of options open for home buyers on a limited budget.
Get a Low Down-Payment Loan to Lower Upfront Costs
Many first-time home buyers still believe they need a minimum of 20% to put down on the purchase of a new home. While bigger down payments do provide expanded purchasing power, you may be able to purchase a home with much less – perhaps even as little as 0%-3.5% down depending on the type of loan you choose. For example, military veterans and active-duty members may obtain a mortgage with no money down. Others can qualify for government-backed loans called FHA loan, which require just 3.5% down for eligible applicants.
If you are in the market for a new real estate Rockport TX, it is important to speak with a professional who can help you consider all your options. Contact a buyer’s agent and a lender to discuss financing solutions and how much you might need to buy your next Texas home.