Many first-time buyers in Houston can carry a monthly payment long before they have saved the down payment and closing costs. Down payment assistance exists to close that gap. Four public programs matter to Houston buyers in 2026: one from the City of Houston, one from Harris County, and two from state agencies. Each has its own map, income limits and strings, and two of the four are mostly closed to new applicants right now. Every figure below comes from the program's own published materials, checked on October 7, 2026.
TL;DR
- The City of Houston Homebuyer Assistance Program offers up to $75,000 for homes that pay City of Houston taxes, but the City says it is not accepting or processing new applications because its funds are exhausted.
- Harris County's Down Payment Assistance Program offers up to $40,000 in unincorporated Harris County, but for now it only accepts buyers affected by Hurricane Beryl or the derecho.
- TSAHC and TDHCA offer up to 5% of the loan amount statewide, including inside Houston, and are open through approved lenders.
- Almost every program requires a HUD-approved homebuyer education course, so take it first.
- The assistance usually arrives as a second lien with conditions. Read the payback terms before you pick a program.
Who counts as a first-time buyer
All four programs use roughly the same test: you have not owned a home, or had an ownership interest in your primary residence, in the past three years. The City of Houston states it as "have not owned a home in the last 3 years," Harris County as not having owned a home for three years before applying, and TDHCA's My First Texas Home matrix as not having owned and occupied a primary residence during the last three years.
So if you sold a home four years ago and have rented since, you likely qualify again. TDHCA also waives the requirement for qualified veterans and for homes in qualified targeted census tracts. TSAHC's down payment assistance does not require first-time buyer status at all. Only its Mortgage Credit Certificate does.
City of Houston Homebuyer Assistance Program (HAP)
The City's Housing and Community Development Department runs HAP for homes inside the city. The deciding question is not your mailing address. It is whether the house pays City of Houston property taxes. Plenty of homes with a "Houston, TX" address sit in unincorporated Harris County and do not qualify.
What it offers
According to the City's HAP page, eligible buyers can receive up to $75,000, depending on household need. The eighth amended HAP guidelines, effective June 23, 2026, raised the maximum from $50,000. The money can go toward the down payment, reasonable closing costs, prepaid items like insurance and property taxes, buying down the interest rate, or reducing the principal. It cannot be used to pay a realtor's commission.
The assistance is a no-interest, forgivable loan secured by a lien. The City's page describes it as fulfilled once the buyer has lived in the home for eight years. If you sell or move out sooner, you repay a portion.
Who qualifies
The City's published requirements include:
- U.S. citizen or permanent resident, including the co-applicant and spouse
- Household income at or below 80% of the area median income
- An 8-hour homebuyer education certificate from a HUD-approved agency, plus a lender pre-approval
- A front-end debt ratio of 33% or below and a back-end ratio of 45% or below
- Less than $50,000 in liquid assets, and at least $350 of your own money in the transaction
There is no minimum credit score and no maximum purchase price, as long as the payment fits those ratios. The City says the process takes about six weeks from a complete application.
Where it stands right now
This is the catch. As of October 7, 2026, the HAP page says that because program funds are exhausted, the City is "no longer accepting or processing additional applications." It also says pre-approval letters will now be valid for three months with no extensions. You can reapply once funding is replenished.
If you fit HAP, watch that page and keep your education certificate current. Meanwhile, the state programs below also work inside city limits.
Harris County Down Payment Assistance Program (DAP)
Harris County's program covers the opposite side of the map. Homes must be in unincorporated Harris County or in a cooperating city, and they cannot be inside Houston, Baytown or Pasadena, which run their own programs.
What it offers
The County's DAP page lists a maximum award of $40,000. Part of that is earmarked for specific costs: a home warranty, a year of flood insurance, homeowner's insurance with wind and hail coverage, an elevation certificate, HOA dues, and the title policy. After those, the base amount left for the down payment, prepaids and closing costs is $27,100. The assistance is a "silent" second mortgage. You must keep the home as your primary residence for 5 years if the award is under $25,000, or 10 years if it is $25,000 to $40,000.
Who qualifies
The County lists these requirements:
- A credit score of at least 580
- A front-end ratio up to 39% and total debt-to-income up to 42%
- A HUD-approved homeownership course
- At least $1,000 of your own money in the deal
- No more than $30,000 in liquid assets
- U.S. citizen or permanent resident alien
The maximum purchase price is $285,000 for an existing home and $296,000 for new construction. The home must also be in a qualifying census tract.
Where it stands right now
The County currently accepts only participants who were affected by Hurricane Beryl or the derecho. Its page says applications from non-affected buyers "can no longer be accepted" because the program has reached maximum capacity. If that applies to you, apply through one of the County's participating lenders. The County does not take applications directly.
TSAHC: Home Sweet Texas and Homes for Texas Heroes
The Texas State Affordable Housing Corporation pairs a fixed-rate mortgage with down payment assistance of up to 5% of the loan amount. You choose between a grant that never has to be repaid and a forgivable second lien that is forgiven after three years, provided you do not sell, refinance or move out in that time.
- Home Sweet Texas is for low- and moderate-income households. First-time and repeat buyers both qualify.
- Homes for Texas Heroes is for teachers, police officers, firefighters, EMS personnel, county jailers, corrections officers and veterans.
In July 2026 TSAHC raised its income limits to 150% of area median family income for Home Sweet Texas and 170% for Texas Heroes. For the Houston metro, that is $156,000 and $176,800 respectively. TSAHC requires a 620 minimum credit score on government loans (FHA, VA, USDA) and 640 on conventional loans. It also says most of its down payment assistance has an unlimited funding source, so it does not run out the way the City and County programs have.
First-time buyers can add a Mortgage Credit Certificate. The MCC is a federal tax credit equal to 15% of the mortgage interest you pay each year. It has a lower income limit (115% of area median family income) than the down payment assistance.
You apply through a TSAHC-approved lender, not through TSAHC directly.
TDHCA: My First Texas Home
The Texas Department of Housing and Community Affairs runs the Texas Homebuyer Program. Its first-time buyer product, My First Texas Home, offers down payment and closing cost assistance of 2% to 5% of the mortgage, paired with a 30-year fixed-rate FHA, VA or USDA loan. The assistance comes in two forms, both at 0% interest with no monthly payment. One is a 30-year deferred second lien, due when you sell, refinance or pay off the first mortgage. The other is a 3-year deferred forgivable second lien that is forgiven after 36 months, as long as you stay current on the first mortgage and live in the home.
The program matrix lists a 620 minimum middle credit score and HUD-certified homebuyer education for all borrowers. TDHCA's income and purchase price table, effective July 13, 2026, covers the Houston-The Woodlands-Sugar Land area (including Harris, Fort Bend and Montgomery counties). Its income limits are $104,000 for a household of one or two and $119,600 for three or more. The purchase price limit for a single-unit home outside targeted areas is $566,354. Income counts everyone who will sign the deed of trust, including a non-purchasing spouse.
TDHCA also offers My Choice Texas Home, which has no first-time buyer requirement.
Which program fits the house you want
Start with the address, not the program.
- Inside Houston city limits: HAP is the biggest award but is paused. TSAHC and TDHCA are open.
- Unincorporated Harris County (including much of Cypress and Spring): Harris County DAP applies, but right now only for Beryl- or derecho-affected buyers. TSAHC and TDHCA are open.
- Other counties (Fort Bend, Montgomery and beyond): TSAHC and TDHCA apply statewide. Check whether that county or city runs its own program.
To confirm which taxing jurisdictions cover a specific property, look up the address on the Harris Central Appraisal District site before you write an offer. When you search homes, keep in mind that a "Houston" mailing address alone does not settle it.
The strings attached
Assistance is real money, but rarely free money. Before you choose, ask the lender to show you:
- The payback terms. Is it a grant, a forgivable lien, or a deferred lien that comes due when you sell or refinance? How long must you live in the home, and what is owed if you leave early?
- The rate trade-off. Assisted loans can carry a higher interest rate than an unassisted loan. Compare the total cost over the years you expect to own the home, not just cash to close.
- The timeline. City and County programs add their own review, inspection and environmental steps. Build that into your contract dates and your option period.
- Whether programs stack. Each program sets its own rules on combining with others. Get that answer in writing from the lender, not from a flyer.
A step-by-step plan
- Check your credit and debts against the program minimums. Our guide to what credit score you need in Texas walks through the bands.
- Take a HUD-approved homebuyer education course. HUD keeps a list of approved housing counseling agencies.
- Talk to a lender approved for TSAHC or TDHCA, and for the City or County program if it applies. Get pre-approved for a specific program, not just a loan amount.
- Set a budget that includes property taxes, insurance and any HOA. See how much house you can afford in Houston and buyer closing costs in Houston.
- Shop inside the program's map and price limits, and confirm the taxing jurisdiction before you offer.
FAQ
Is the City of Houston down payment assistance program open in 2026?
Not to new applicants as of October 7, 2026. The City's HAP page says funds are exhausted and it is not accepting or processing additional applications. You can reapply when funding is replenished.
Do I have to be a first-time buyer for TSAHC?
Not for its down payment assistance. TSAHC's Mortgage Credit Certificate is limited to first-time buyers, which it defines as anyone who has not owned a primary residence in the past three years.
What credit score do Houston down payment assistance programs require?
The City's HAP does not consider credit score. Harris County requires 580. TSAHC requires 620 on government loans and 640 on conventional loans, and TDHCA's My First Texas Home requires 620.
Can I use the City of Houston program for a home in Cypress or Spring?
Only if the home pays City of Houston taxes, and most Cypress and Spring addresses do not. Those homes are usually in unincorporated Harris County, which is the County program's territory.
Do I have to pay down payment assistance back?
It depends on the program. TSAHC offers a grant or a lien forgiven after three years. TDHCA offers a lien forgiven after three years or a deferred lien due when you sell or refinance. The City and County liens require you to live in the home for a set number of years.
One last thing
Program rules and funding change often. Confirm every figure here on the program's own page and with your lender before you write an offer. If you want help matching a program to a specific neighborhood and price range, talk to our team.