East Austin Mortgage Broker: Condo Regimes, Infill and Century-Old Cottages
East Austin homes generally trade between $600,000 and $1 million, and the housing east of I-35 is some of the most varied in the city: century-old wood cottages, post-war bungalows and a steady stream of new infill homes built by small builders on the same streets.
The single most common structure in East Austin infill is also the least understood: two homes on one lot, sold as condominium units. Buyers who expect a house and receive a condo declaration at the title company are common. This page explains what you are buying and how it is financed.
Buying or refinancing in East Austin? We shop your file across a panel of wholesale lenders.
Two homes, one lot: the condo regime
Rather than split a lot into two parcels, many builders place two detached homes on a single lot and record a condominium declaration. Each home becomes a separately owned unit. The land beneath and around the homes is common or "limited common" property shared under the declaration.
To a buyer standing in the yard it looks like a house. Legally and for financing, it is a condo.
How lenders treat it
Small regimes of two to four units are generally exempt from the full condo project review that larger buildings go through. That makes them far easier to finance than a typical condo building.
The declaration still matters. The lender will review it for insurance requirements, how the units are defined, and any restrictions on use or leasing.
FHA and VA have their own condominium approval requirements, and many small regimes are not approved for those programs. Conventional financing is the usual route.
What to check in the declaration
Insurance. Many small regimes have no master policy; each owner insures their own home. The declaration has to say so clearly, and your homeowner's policy has to match what it requires.
The shared parts. Driveways, fences, drainage and sometimes a shared water or sewer line are governed by the declaration. Who maintains them, and who pays, should be written down, not assumed.
The association. Most two-unit regimes have an association on paper and none in practice. That is normally fine, but a dispute with your neighbor has no neutral party to resolve it.
Leasing and short-term rental rules, which can limit your plans for the unit later.
Buying new from a small builder
Infill homes in East Austin are frequently built by small local builders rather than the national companies that build suburban subdivisions. That changes a few things.
The warranty is whatever the builder offers. Texas does not impose a statewide new-home warranty. Ask for the warranty in writing and check whether it is backed by a third-party warranty company.
The home must be finished before you close. Lenders require a certificate of occupancy and completion of the final inspection. Delays at the city push the closing, so keep your rate lock long enough to absorb them.
The appraisal leans on other new infill. Appraisers compare new homes against recent new-home sales nearby, not against the older cottage next door. A builder pricing well above the last few infill sales can leave an appraisal gap.
Check the floodplain. Parts of East Austin sit near Boggy Creek and other creeks, and a new home on a lot in a mapped flood zone requires flood insurance on any federally backed loan.
The original cottages
East Austin's older homes — many from the early twentieth century — are often small, wood-framed, and on pier-and-beam foundations. Their value is usually the lot and the character, and they can be the most affordable detached homes in the area.
Inspect the foundation, the drain lines and the wiring as you would any house of that age. If the list is long, a renovation loan that finances the purchase and the work together is worth pricing. Our Barton Hills page explains how it works.
Taxes in East Austin
An East Austin address inside the City of Austin carries the City of Austin, Travis County, Austin ISD, Austin Community College and Central Health rates — generally around 1.8% to 2.1% of assessed value combined.
A new infill home is assessed at its finished value. If the home was completed after January 1, the first bill may reflect only the land, and the next one will jump. Escrow for the full value from the start.
Verify the parcel with the Travis Central Appraisal District.
Where people buy
Holly and the blocks near Lady Bird Lake's eastern shore mix old cottages with modern infill close to the water and downtown.
Around Plaza Saltillo and East Sixth, the streets closest to downtown carry the highest prices and the densest new construction.
Cherrywood and French Place, north toward Manor Road, have tree-lined streets of 1930s and 1940s homes and a slower rebuild pace.
Govalle and the areas east of Pleasant Valley carry more recent infill at somewhat lower prices.
To the north, Mueller offers planned new construction with different financing questions.
The neighborhood
East Austin covers a broad area east of I-35, from Lady Bird Lake north toward the old airport site. Much of it was platted in the early twentieth century, which accounts for its narrow lots and small original homes.
The Texas State Cemetery, where many of the state's governors and notable Texans are buried, sits just east of the interstate. Plaza Saltillo, a rail stop on the MetroRail line, has become one of the area's main redevelopment centers, and the Boggy Creek Greenbelt and Govalle Park provide open space through the neighborhoods.
Not sure which fits? Compare every loan program we place.
Frequently asked questions
What is a condo regime in Austin? A legal structure where two or more homes on one lot are recorded as separate condominium units under a declaration, instead of splitting the lot into separate parcels. Each home is owned individually; the land is shared under the declaration.
Is a condo regime harder to finance than a house? Usually not. Small regimes of two to four units are generally exempt from the full condo project review. FHA and VA financing is more limited, and the lender will still review the declaration.
Who insures a home in a two-unit condo regime? It depends on the declaration. Many small regimes have no master policy, and each owner insures their own home. Your policy has to match what the declaration requires.
Can I close on a new build before it is finished? No. Lenders require a certificate of occupancy and a completed final inspection before closing, so build some cushion into your rate lock.
Does East Austin require flood insurance? Only for properties in a mapped special flood hazard area. Some areas near Boggy Creek and other creeks are, so check the specific lot.
What are property taxes in East Austin? A typical City of Austin address in Austin ISD carries a combined rate around 1.8% to 2.1% of assessed value. New homes are assessed at their finished value.
Read the declaration before you write the offer
In East Austin, the paperwork behind the house matters as much as the house. Send us the address and we will tell you how it is recorded and which programs fit.
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