How Much Home Can You Afford in Austin at Today's Rates?

With 30-year fixed rates holding in the mid-6% range through 2026, the math on what you can afford in Austin looks different than it did a few years ago. Here's how to think about it in real numbers.

What it takes to buy at different price points

At a rate around 6.5% with 10% down, a household income of roughly $95,000-$110,000 generally supports a $400,000 purchase. Moving up to a $550,000 home typically requires household income in the $130,000-$145,000 range. These figures assume standard debt-to-income limits and no significant other debt like student loans or car payments — both of which reduce your qualifying amount.

Levers that change your number

Down payment. Raising your down payment lowers both your loan amount and your monthly mortgage insurance, stretching your budget further.

Loan program. FHA's flexible debt-to-income guidelines, or a VA loan's zero-down structure, can qualify some buyers for more home than a conventional loan would.

Rate buydowns. A temporary or permanent rate buydown lowers your effective payment, which can be the difference between qualifying at one price point versus the next tier up.

Down payment assistance. Programs like Home Sweet Texas free up cash you'd otherwise put toward the down payment, which can go toward a larger loan amount instead.

Don't skip pre-approval

A true pre-approval, based on verified income, assets and credit, gives you a real number to shop with — not the "estimate" from an online calculator, which doesn't account for your specific debt, credit profile, or the loan program that fits you best.

Related Reading