The Austin region’s population is growing rapidly, and there are no signs that the growth will slow anytime soon. Demographers predict that the area’s population of 2.2 million will nearly double in the next 35 to 40 years. There are many economic benefits to this growth, but the growth brings challenges, too, and one of the most pressing challenges is a lack of affordable housing.

It’s clear that access to affordable housing is a widespread concern, and rising home prices and the highest mortgage rates in 20 years is only making it worse. That’s why we have introduced the Frost Progress Mortgage and the Progress Home Equity Loan.

Helping people get their own houses

The Frost Progress Mortgage is available today to borrowers in several Texas markets, and we expect it will be available to Austin-area borrowers by the end of 2023. The Frost Progress Mortgage is for borrowers whose income is at or below 80% of their county’s median family income (defined by the Federal Financial Institution Examination Council).

Frost is offering Progress Mortgage borrowers $4,000 to offset certain closing costs and fees, and we have committed to keeping the Progress Mortgage’s fixed interest rate at competitive levels. Progress Mortgage borrowers can finance up to 100% of their home purchase price, meaning they won’t have to make a down payment, and borrowers are not required to pay private mortgage insurance premiums.

Making the most of a home’s value

For people who already own a house, condominium or townhome, we have created the Frost Progress Home Equity Loan. Like the Progress Mortgage, homeowners can qualify for the Progerss Home Equity Loan if their income is no greater than 80% of their county’s median family income. The Progress Home Equity Loan is available for terms of 10, 20, 25 and 30 years, and in most cases borrowers will have no closing costs. There is no maximum loan amount, but the maximum loan-to-value percentage is 80%, as required by Texas law.

Taking pragmatic steps

Through these pragmatic, direct steps, we at Frost are doing our part to help Texans find and stay in affordable houses especially when interest rates and housing prices are high. We know we can’t solve the affordable housing challenge alone, but we’re proud that these steps can work in conjunction with the efforts of other entities also working on this issue.