Houston Down Payment Assistance Programs 2026: The Complete Guide

Saving for a down payment is hard for many Houston buyers. Down payment help programs can lower the cash you need. Some are run by the city, some by the county, and some by the state. Each has its own rules, and funds open and close.

I am a Houston mortgage loan officer. In this guide, I walk you through the main programs, who may qualify, and how to get ready. Then you can ask me which ones may fit you.

City of Houston Homebuyer Assistance Program (HAP)

Status: As of October 21, 2026, the city says HAP funds have run out. It is not taking new applications right now. The city says you can reapply once funds open again. Ask me to check the status before you plan around it.

When it is open, HAP helps first time buyers buy a home inside city limits. The help comes as a forgivable loan. The city forgives it over time if you live in the home and follow the rules.

What It Covers:

• Part of the down payment
• Closing costs
• Some other costs the city allows

Who Qualifies:

• First time buyer, meaning you have not owned a home in the past 3 years
• Household income at or under the city's limit. It is 80% or 120% of the area median income, based on the fund source.
• Property must be within Houston city limits
• Property must pay taxes to City of Houston
• Finish an 8 hour homebuyer class from a HUD approved agency before you apply
• Every person in the home must be a U.S. citizen or permanent resident

The city sets its income limits by household size and updates them each year. Ask me to check your numbers against the current limits.

Harris County Down Payment Assistance

Harris County has its own program for homes in the county outside Houston city limits.

Status: As of October 21, 2026, the county says its program is full. It only takes buyers hurt by Hurricane Beryl or the May 2024 windstorm. Ask me to check the status before you plan around it.

Requirements:

• Household income at or under 80% of the area median income
• The county lists a minimum credit score of 620
• Finish an 8 hour homebuyer class from a HUD approved agency
• Live in the home as your main home for a set time after you buy

Where it applies: Homes in Harris County outside Houston city limits. Some cities in the county run their own programs, so check the address with me.

TSAHC (Texas State Affordable Housing Corporation)

This is a statewide program that works anywhere in Texas, including Houston.

Programs Offered:

1. Home Sweet Texas Program

• A grant you never pay back
• Or a second loan. One kind is forgiven after 3 years. Another is paid back when you sell or refinance.
• Open to first time and repeat buyers

2. Homes for Texas Heroes

• For teachers, police, firefighters, EMS, corrections officers, and veterans
• Down payment help sized as a share of your loan amount

How Programs Work With Your Loan

DPA does not replace your home loan. You still need to qualify for a loan, like FHA. FHA can go up to 96.5% loan to value with a credit score of 580 or more. A DPA program may help with part of the down payment and closing costs. Some programs can be used together, and some cannot. Ask me which ones fit your loan.

Common Mistakes That Kill DPA Applications

1. Not Getting Pre-Approved First

Many programs need an approved lender or loan officer. Get preapproved before you shop. Ask your loan officer which programs they can work with.

2. Going Over the Income Limit

Income limits are strict. If you are close to the limit, a raise or a second job can push you over. Tell your loan officer about any income change right away.

3. Skipping Homebuyer Education

Most programs ask for a homebuyer class from a HUD approved agency. The City of Houston program asks for an 8 hour class. Take it early so it does not hold up your closing.

4. Not Knowing How the Help Is Paid Back

Some help is a grant you never pay back. Some is a loan that is forgiven over time if you live in the home. Some must be paid back when you sell or refinance. Ask what you are signing up for.

Who Should Use DPA?

Use DPA if:

• You qualify income-wise
• You plan to stay in the home long enough for the help to be forgiven
• You'd rather keep cash for emergencies/repairs
• You're a first-time buyer or haven't owned in 3+ years

Skip DPA if:

• You already have your down payment and closing costs saved
• You're buying above program price limits
• You need to move fast (some programs are slow)
• You're an investor (these are for primary residence only)

Next Steps

1. Check your income against each program's limits
2. Get preapproved, and ask which DPA programs your loan officer can work with
3. Complete homebuyer education, do this now, not later
4. Start house hunting in eligible areas

For a step-by-step guide to buying your first home in Houston, visit the first-time homebuyer Houston page.