By Clay Byrne, Founder of Byrne Real Estate Group | Austin Real Estate Agents | Lifetime Austin Realtor
The Short Answer
If you’re buying your first home in Austin, the 3-2-1 program lets you put 3% down, ask the seller for 2% toward closing costs, and Buyer’s Rate Mortgage (NMLS #2565699), our integrated mortgage, puts 1% of the loan toward closing costs. On a $412,000 home, that cut cash to close from $24,596 to $12,360 (BRM 3-2-1 flyer, received Nov 4, 2026). It’s for first-time homebuyers only, and the key is an offer written so the seller says yes.
I’ve been selling homes in Austin my whole career, and the buyers I worry about most aren’t the ones who can’t afford the payment. It’s the first-time buyers who can, but don’t have $25,000 sitting in the bank. They keep renting while they save. The 3-2-1 program was built for them.
What is the 3-2-1 program, in plain English?
- 3… you put 3% down
- 2… we ask the seller to cover 2% of the price toward your closing costs
- 1… Buyer’s Rate Mortgage puts 1% of your loan toward your closing costs
It’s only for first-time homebuyers. Under the federal definition, that means you haven’t had an ownership interest in a home in the past three years, and you’ll live in the one you buy. Single parents and displaced homemakers whose only past ownership was with a spouse still count, and only one borrower on the loan has to qualify. If everyone on the loan is a first-time buyer, one of you takes a homebuyer education course before closing (Fannie Mae Selling Guide E-3-06 and B2-2-06; HUD; accessed Nov 4, 2026). Already owned in the last three years, or shopping a higher price range? Read about the 5-2-1 program for Austin move-up buyers. For the full mortgage side, read how the 3-2-1 program works with 3% down on buyersrate.com. (Not to be confused with a “3-2-1 buydown,” which is a temporary rate reduction… a different tool.)
How much cash does it actually save?
- On a $412,000 home, the Austin-area median price on our flyer, normal cash to close: $24,596
- The seller’s 2% covers $8,240 and Buyer’s Rate Mortgage puts 1% of the $399,640 loan toward closing costs: $3,996
- Cash to close with the 3-2-1: $12,360, just the down payment
That’s $12,236 that stays in your account for furniture, a fence, or just peace of mind (all figures BRM 3-2-1 flyer, received Nov 4, 2026). Your numbers will differ.
How do we get the seller to say yes?
Seller help is never guaranteed, so here’s what we do on every 3-2-1 offer:
- Target homes that have been sitting. For a seller facing another price cut, 2% toward your costs can be the better deal.
- Show the seller a clean, ready buyer. Your agent and loan officer talk before the offer goes in, so your preapproval letter matches the offer exactly.
- Write it into the offer. We write in the 2% seller contribution, and Buyer’s Rate Mortgage adds the 1%.
Because Buyer’s Rate Mortgage is our integrated mortgage, we confirm the seller contribution fits your loan before we write it. Using Buyer’s Rate Mortgage is never required.
What else comes with buying through BREG?
- Byrne Buyer Guarantee. If you buy with a BREG agent and don’t love the home, we’ll sell it for you with a free listing fee for up to 18 months after closing (owner-occupied homes).
- Buyer’s Rate Guarantee. Bring us any Loan Estimate from another lender. Buyer’s Rate Mortgage will review it line by line and work to beat it, not just match it… especially for Byrne Real Estate Group clients.
- Home Services concierge vendor program. Vetted local vendors we have used for years. We help manage the process; you pay the vendor directly for the work.
- Annual home valuations so you always know where your equity stands.
Know someone who already owns?
If a friend or family member needs to sell before they buy, start with what their home is worth. Get a free home value, then browse our Austin neighborhood guides or start on our buy a home page.
Get Started
Call or text Byrne Real Estate Group at (512) 942-7880 to tour homes, or call Buyer’s Rate Mortgage at 512-886-0042 to see your 3-2-1 numbers.
Key Facts
| Fact | Detail |
|---|---|
| Who it’s for | First-time homebuyers only: no home ownership in the past 3 years (Fannie Mae; HUD) |
| What it is | 3% down + 2% seller help + 1% from Buyer’s Rate Mortgage ($3,996 on a $399,640 loan) |
| What it lowers | Cash needed at closing, not your rate |
| Example savings | $24,596 down to $12,360 on $412,000 (BRM 3-2-1 flyer, received Nov 4, 2026) |
| Move-up buyers | See the 5-2-1 program |
| Integrated mortgage | Buyer’s Rate Mortgage, NMLS #2565699, 512-886-0042 |
| Protection | Byrne Buyer Guarantee: free listing fee up to 18 months |
Frequently Asked Questions
How does the 3-2-1 program help first-time Austin homebuyers?
It cuts the cash you need at closing by combining 3% down, 2% seller help toward closing costs, and 1% of the loan from Buyer’s Rate Mortgage toward closing costs, NMLS #2565699. It’s only for first-time homebuyers and subject to credit approval and program guidelines.
Who counts as a first-time homebuyer?
Someone who had no ownership interest in a home in the past three years and will live in the home they buy. Single parents and displaced homemakers whose only past ownership was with a spouse still count, and only one borrower on the loan needs to qualify.
I’ve owned a home in the last three years. Can I use the 3-2-1?
No. The 3-2-1 is only for first-time homebuyers. Repeat, move-up and higher-end buyers can use the 5-2-1 program, which starts with 5% down.
Will Austin sellers pay 2% toward my closing costs?
Many will, especially on homes that have been sitting, but seller help is negotiable and never guaranteed. Byrne Real Estate Group writes it into the offer.
Do I have to use Buyer’s Rate Mortgage to buy with BREG?
No. Buyer’s Rate Mortgage is BREG’s integrated mortgage, and it’s never required. The 1% toward closing costs comes from Buyer’s Rate Mortgage.
What is the Byrne Buyer Guarantee?
If you buy with a Byrne Real Estate Group agent and don’t love the home, BREG will sell it for you with a free listing fee for up to 18 months after closing, for owner-occupied homes.
About the Author
Clay Byrne is a lifetime Austin Realtor and Austin resident, founder of Byrne Real Estate Group and owner of Buyer’s Rate Mortgage. Over 29 years he has closed more than $1B in career volume. He also coaches youth sports and coaches other real estate agents.
Examples are for illustration only and are not a commitment to lend. Assumes a $412,000 purchase with 3% down and closing costs and prepaids of at least $12,236. Seller and lender credits cannot exceed actual closing costs. All loans are subject to credit approval, underwriting, property eligibility and appraisal. Rates, terms, fees and programs are subject to change without notice, and not all applicants will qualify. Seller contributions are negotiable and not guaranteed. Lucky Dragon Mortgage LLC dba Buyer’s Rate Mortgage, NMLS #2565699. Clay Byrne, NMLS #377402. Verify licensing at nmlsconsumeraccess.org. Equal Housing Opportunity.
Affiliated business disclosure: Buyer’s Rate Mortgage (Lucky Dragon Mortgage LLC dba Buyer’s Rate Mortgage) and Byrne Real Estate Group are owned by the same company. Because of this relationship, a referral between them may provide a financial or other benefit. You are not required to use Buyer’s Rate Mortgage as a condition of buying or selling a home with Byrne Real Estate Group, and you are free to shop for other lenders.
Texas Consumer Complaint and Recovery Fund Notice (7 TAC 81.200(c)), for Buyer’s Rate Mortgage: CONSUMERS WISHING TO FILE A COMPLAINT AGAINST A MORTGAGE BANKER OR A LICENSED MORTGAGE BANKER RESIDENTIAL MORTGAGE LOAN ORIGINATOR SHOULD COMPLETE AND SEND A COMPLAINT FORM TO THE TEXAS DEPARTMENT OF SAVINGS AND MORTGAGE LENDING, 2601 NORTH LAMAR, SUITE 201, AUSTIN, TEXAS 78705. COMPLAINT FORMS AND INSTRUCTIONS MAY BE OBTAINED FROM THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV. A TOLL-FREE CONSUMER HOTLINE IS AVAILABLE AT 1-877-276-5550. THE DEPARTMENT MAINTAINS A RECOVERY FUND TO MAKE PAYMENTS OF CERTAIN ACTUAL OUT OF POCKET DAMAGES SUSTAINED BY BORROWERS CAUSED BY ACTS OF LICENSED MORTGAGE BANKER RESIDENTIAL MORTGAGE LOAN ORIGINATORS. A WRITTEN APPLICATION FOR REIMBURSEMENT FROM THE RECOVERY FUND MUST BE FILED WITH AND INVESTIGATED BY THE DEPARTMENT PRIOR TO THE PAYMENT OF A CLAIM. FOR MORE INFORMATION ABOUT THE RECOVERY FUND, PLEASE CONSULT THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV.
Sources: BRM 3-2-1 flyer, received Nov 4, 2026. Fannie Mae Selling Guide E-3-06 and B2-2-06; HUD HOC Reference Guide; 42 U.S.C. 12713; accessed Nov 4, 2026.
Byrne Real Estate Group | Austin Real Estate Agents, 3355 Bee Caves Rd Ste 301B, Austin, TX 78746
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