By Clay Byrne, Owner of Buyer's Rate Mortgage | Founder of Byrne Real Estate Group…
The 5-2-1 Program: How Austin Move-Up Buyers Close With Less Cash
By Clay Byrne, Owner of Buyer’s Rate Mortgage | Founder of Byrne Real Estate Group | Lifetime Austin Realtor
The Short Answer
The 5-2-1 program from Buyer’s Rate Mortgage is built for move-up and higher-end buyers. You put 5% down on a conventional conforming loan, the seller pays 2% toward closing costs, and Buyer’s Rate Mortgage puts 1% of the loan toward closing costs. On a $750,000 home, that took cash to close from $59,625 down to $37,500, a $22,125 saving (BRM 5-2-1 flyer, received Nov 4, 2026).
I’m Clay Byrne, owner of Buyer’s Rate Mortgage and founder of Byrne Real Estate Group. Move-up buyers usually aren’t short on income. They’re short on cash at the moment it counts, because their equity is still tied up in the house they live in. The 5-2-1 is how we close that gap.
Who can use the 5-2-1?
Any buyer, first-time or repeat, as long as the loan fits within conforming loan limits. In Travis County, the 2026 conforming loan limit for a one-unit home is $832,750 (FHFA 2026 Conforming Loan Limits, county list, released Nov 25, 2025, accessed Nov 4, 2026). The $712,500 loan in our $750,000 example is $120,250 under that limit. Loans above the limit are jumbo loans and fall outside the 5-2-1.
It’s a great fit for move-up buyers and anyone shopping a higher price range. First-time homebuyers who want to put down less can look at our 3-2-1 program with 3% down, which is only for first-time buyers.
What are the three parts of the 5-2-1?
- 5% down. A conventional conforming loan with 5% down (BRM 5-2-1 flyer, received Nov 4, 2026).
- 2% seller help. Your agent writes a 2% seller contribution toward closing costs into the offer. Seller help is negotiable and never guaranteed. At 95% LTV on a principal residence, Fannie Mae caps seller-paid financing concessions at 3% of the price, so 2% fits (Fannie Mae Selling Guide B3-4.1-02 (05/07/2025), accessed Nov 4, 2026).
- 1% from Buyer’s Rate Mortgage. Buyer’s Rate Mortgage puts 1% of the loan amount toward your closing costs. On a $712,500 loan, that’s $7,125. Seller and lender credits cannot exceed actual costs.
How does the math work on a $750,000 home?
| Step | Amount | Source and date |
|---|---|---|
| Purchase price (move-up example) | $750,000 | BRM 5-2-1 flyer, received Nov 4, 2026 |
| 5% down payment | $37,500 | BRM 5-2-1 flyer, received Nov 4, 2026 |
| Loan amount | $712,500 | BRM 5-2-1 flyer, received Nov 4, 2026 |
| Normal cash to close | $59,625 | BRM 5-2-1 flyer, received Nov 4, 2026 |
| Seller’s 2% toward closing costs | minus $15,000 | BRM 5-2-1 flyer, received Nov 4, 2026 |
| Buyer’s Rate Mortgage 1% (1% of $712,500 loan) | minus $7,125 | BRM 5-2-1 flyer, received Nov 4, 2026 |
| Closing costs covered for the buyer | $22,125 | BRM 5-2-1 flyer, received Nov 4, 2026 |
| Cash to close with the 5-2-1 | $37,500 | BRM 5-2-1 flyer, received Nov 4, 2026 |
The seller’s $15,000 plus our $7,125 credit covered $22,125 in closing costs and prepaids. The buyer brought only the $37,500 down payment (BRM 5-2-1 flyer, received Nov 4, 2026). Your numbers will differ, so call us for your own breakdown.
Why does this work for sellers too?
Higher-priced listings in Austin can sit. For a seller looking at another price cut, offering 2% toward the buyer’s costs can be the better trade. Byrne Real Estate Group writes the contribution into the offer, and Buyer’s Rate Mortgage confirms it fits your loan first, so your preapproval letter matches. See the buyer side in how the 5-2-1 program helps Austin move-up buyers on byrne-austin.com.
Can I buy before I sell my current home?
Often, yes. Through Byrne Real Estate Group, we have relationships with vendors, not just banks, that can help you buy before you sell. The options are affordable and relatively easy, and we’ll show you how each one fits with your 5-2-1 numbers. Terms vary by provider and are subject to approval.
What if another lender offers me a better deal?
Buyer’s Rate Guarantee: bring us any Loan Estimate from another lender. We’ll review it line by line and work to beat it, not just match it… especially for Byrne Real Estate Group clients. Our charter is simple: don’t match, beat.
Who is the 5-2-1 not a fit for?
- First-time homebuyers who’d rather put 3% down (see the 3-2-1 program)
- Loans above the conforming limit ($832,750 for a one-unit home in Travis County in 2026, per FHFA), which are jumbo loans
- Buyers whose real hurdle is the monthly payment, not cash to close
Using Buyer’s Rate Mortgage is never required when you buy with Byrne Real Estate Group.
How do I get my 5-2-1 numbers?
Call or text 512-886-0042 or apply online. We’ll run your cash to close with and without the program.
Key Facts
| Fact | Detail |
|---|---|
| Who it’s for | Any buyer whose loan fits conforming limits |
| Travis County 2026 conforming limit | $832,750, one unit (FHFA, accessed Nov 4, 2026) |
| Program | 5% down + 2% seller help + 1% from Buyer’s Rate Mortgage |
| BRM’s 1% in the example | $7,125 (1% of $712,500) |
| Example loan vs limit | $712,500, which is $120,250 under the limit |
| Example price | $750,000 (BRM 5-2-1 flyer, received Nov 4, 2026) |
| Example cash to close | $59,625 normal vs $37,500 with the 5-2-1 (BRM 5-2-1 flyer, received Nov 4, 2026) |
| Credit limits | Seller and lender credits cannot exceed actual costs |
| First-time buyers | See the 3-2-1 program |
| Lender | Buyer’s Rate Mortgage, NMLS #2565699, 512-886-0042 |
Frequently Asked Questions
What is the 5-2-1 program from Buyer’s Rate Mortgage?
It’s a cash-to-close program for any buyer using a conforming loan: 5% down, 2% seller help toward closing costs, and 1% of the loan from Buyer’s Rate Mortgage toward closing costs, NMLS #2565699. Subject to credit approval and underwriting.
What is the 2026 conforming loan limit in Travis County?
$832,750 for a one-unit home, per the Federal Housing Finance Agency. The $712,500 loan in the 5-2-1 example is under that limit.
How is the 5-2-1 different from the 3-2-1?
The 3-2-1 uses 3% down and is only for first-time homebuyers. The 5-2-1 uses 5% down and is open to any buyer whose loan fits conforming limits. Both use 2% seller help and 1% from Buyer’s Rate Mortgage.
How much can the 5-2-1 save?
In the flyer’s $750,000 example, cash to close dropped from $59,625 to $37,500, a $22,125 saving. Your numbers will differ.
Can the credits pay my down payment?
No. In the flyer example the credits cover closing costs and prepaids, and seller and lender credits cannot exceed actual costs.
What is the Buyer’s Rate Guarantee?
Bring Buyer’s Rate Mortgage any Loan Estimate from another lender. We’ll review it line by line and work to beat it, not just match it, especially for Byrne Real Estate Group clients.
Examples are for illustration only and are not a commitment to lend. Assumes a $750,000 purchase with 5% down on a conventional conforming loan and closing costs and prepaids of at least $22,125. 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.
Sources: BRM 5-2-1 flyer, received Nov 4, 2026. FHFA 2026 Conforming Loan Limits, county list, accessed Nov 4, 2026. Fannie Mae Selling Guide B3-4.1-02 (05/07/2025), accessed Nov 4, 2026.
Lucky Dragon Mortgage LLC dba Buyer’s Rate Mortgage, NMLS #2565699. Clay Byrne, NMLS #377402. Verify licensing at nmlsconsumeraccess.org. Call 512-886-0042 | Apply now. 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)): 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.
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