Killeen First-Time Buyers Choose Between New Construction and Existing Homes

First-time buyers in Killeen signed 142 off-the-plan contracts during the second quarter of 2026, outpacing the 89 established homes purchased under $300,000 in the same period.

Global events including U.S. strikes on Iranian targets have lifted oil prices and mortgage rates, making the choice between waiting for a new house and moving into a finished property more immediate for households tied to Fort Cavazos.

Developers marketing lots along East Trimmier Road near the new Clear Creek Crossing subdivision pair with the Killeen Housing Authority to offer $10,000 closing-cost credits for qualifying buyers. At the same time, the city’s First Home Program, started in March 2025, supplies down-payment help for established properties on Rancier Avenue and nearby blocks inside the Southside neighborhood.

Local Multiple Listing Service records show the median price for a three-bedroom established home reached $268,500 in June, while comparable off-the-plan units averaged $312,000 but carry five-year builder warranties and energy-efficient appliances installed at no extra charge.

Off-the-plan route

Contracts for homes still under construction lock in today’s price and often include upgrades such as quartz counters and smart thermostats. Settlement usually occurs six to nine months after signing, exposing buyers to potential delays if material costs rise further from the Iran-related supply disruptions. Interest rates on these loans sit at 6.75 percent for 30-year fixed products available through local lenders tied to the Fort Cavazos credit union network.

Buyers must put down at least 3.5 percent under FHA guidelines, yet the Killeen Housing Authority credit can cover most of that requirement for households earning under $78,000. The trade-off is limited ability to inspect the finished product before committing.

Established homes

Move-in ready houses on streets such as South 38th allow immediate occupancy and let buyers negotiate repairs after a standard inspection. Many listings from 1990s construction still feature mature trees and larger lots than the new subdivisions. Average days on market for these properties reached 28 in June, giving purchasers more leverage on price than the off-the-plan queue.

Grants under the First Home Program can reach $15,000 for established purchases when combined with state matching funds, though the money must be used within 60 days of approval. Buyers avoid construction risk but may face immediate maintenance costs for older roofs or HVAC units.

Prospective buyers should contact the Killeen Housing Authority at its office on West Veterans Memorial Boulevard before July 31 to lock in current grant allocations, then compare loan estimates from at least two local lenders serving the Fort Cavazos area.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.