Houston First-Time Buyers: DPA Programs That Could Save You $50,000

There are 2,619 down payment assistance programs in the United States right now, the highest number ever recorded, up 6% from last year. The average benefit is $18,000. Houston has some of the most generous programs in the country, including one that can cover up to $50,000 in down payment and closing costs.

Most first-time buyers have no idea these programs exist.

If the down payment is what is standing between you and buying a home in Houston, read this before you give up or push the purchase another year.

The Programs Available in Houston Right Now

City of Houston Homebuyer Assistance Program (HAP)

The City of Houston's Homebuyer Assistance Program provides up to $50,000 in down payment and closing cost assistance to qualifying first-time buyers. This is a forgivable loan, meaning if you live in the home for five years, you owe nothing back. There is no monthly payment, no interest, and no repayment as long as you stay in the house.

Eligibility requirements:

• First-time homebuyer (no ownership interest in a principal residence in the past three years)
• Household income at or below 80% of the Area Median Income (AMI). For Houston in 2026, that is approximately $57,000 for a single person, $65,000 for a household of two, and $81,000 for a household of four.
• Must complete an 8-hour homebuyer education course approved by the city
• Property must be located within Houston city limits
• Purchase price limit applies, check with the program for current maximums
• Must be a primary residence (no investment properties)

How the forgiveness works: The assistance is structured as a five-year forgivable loan. If you sell, transfer, or move out before five years, a portion of the assistance may be repayable on a prorated basis.

This is the largest program available to Houston buyers and the one most worth pursuing if you qualify.

Harvey Homebuyer Assistance Program 2.0 (HbAP 2.0)

The Harvey Homebuyer Assistance Program was created for Houston residents displaced or impacted by Hurricane Harvey (2017). HbAP 2.0 provides up to $125,000 in assistance, the most generous program in the region for qualifying buyers.

Who this is for: Houston area residents who experienced damage or displacement as a result of Hurricane Harvey, or buyers purchasing in zip codes that were part of the Harvey disaster declaration.

Eligibility: Income limits apply at 120% AMI. The program has specific documentation requirements related to Harvey impact. Because of its scope and the amount available, this program has more complex application requirements than the city's standard HAP.

If you were impacted by Harvey and are buying in Houston, this program should be the first call you make.

NeighborhoodLIFT (Wells Fargo / LISC)

NeighborhoodLIFT is a partnership program between Wells Fargo and LISC (Local Initiatives Support Corporation) that provides up to $15,000 in down payment assistance in select cities, with Houston as a participating market.

Eligibility requirements:

• Income at or below 80% to 120% AMI depending on the program tier
• Homebuyer education course required (NeighborhoodLIFT partner-approved)
• Property in the designated area for the Houston program
• Must close with a participating Wells Fargo mortgage

How it works: The assistance is a five-year forgivable loan at 0% interest. Forgiven in full after five years of owner-occupancy.

Note: NeighborhoodLIFT programs are event-based and funds can be depleted. Check current availability before planning around this program.

Texas Department of Housing and Community Affairs (TDHCA) — My First Texas Home

The state of Texas offers two DPA programs through TDHCA. My First Texas Home is available statewide.

What it provides:

• Down payment assistance of 2% to 5% of the loan amount
• Assistance comes as a second loan at 0% interest that is deferred for the life of the first mortgage. You only repay it when you sell, refinance, or pay off the first loan.
• Must use a TDHCA-approved lender (Brandon is connected to TDHCA programs through his lender network)

Eligibility:

• First-time homebuyer (or qualifying veteran)
• Income limits apply by county (Harris County limits are higher than rural Texas limits)
• Credit score of 620 or above
• Purchase price limits apply
• Must complete homebuyer education

Why this matters: TDHCA programs are statewide and not dependent on Houston city limits. If you are buying in Houston suburbs like Katy, Pearland, Cypress, Sugar Land, or Spring, TDHCA may be available where HAP is not.

Texas State Affordable Housing Corporation (TSAHC)

TSAHC offers down payment assistance that functions as a true grant, not a loan, not forgivable, just money that is yours and never repaid.

What it provides:

• 2% to 5% of the loan amount in down payment assistance, structured as a grant
• Available for FHA, conventional, VA, and USDA loans
• Statewide coverage including all Houston area suburbs

Eligibility:

• Income limits apply (Texas statewide limits, higher than some city-specific programs)
• Credit score of 620 or above
• Available to both first-time buyers and repeat buyers in some cases
• Must use a TSAHC-approved lender

Key difference from TDHCA: TSAHC assistance is a grant with no repayment ever, under any circumstances. TDHCA assistance is a deferred loan that comes due when you sell or refinance. For buyers who plan to stay in the home long-term, either works. For buyers who anticipate selling or refinancing within a few years, a grant is cleaner.

Quick Comparison Table

Step-by-Step: How to Apply

Step 1: Get pre-approved first. DPA programs require a mortgage to be in place. The assistance supplements your loan, it does not replace the need to qualify for one. Your pre-approval determines your purchase price limit, your loan type (FHA, conventional, VA), and which DPA programs you are eligible for. Start here.

Step 2: Confirm income eligibility. DPA programs use Area Median Income limits to determine eligibility. Your household income, including all adults who will live in the home, needs to fall within the program limit. Brandon can calculate your AMI percentage during the pre-approval call.

Step 3: Complete a homebuyer education course. Every Houston-area DPA program requires a HUD-approved homebuyer education course. These are typically 8 hours and can be completed online. The cost is usually $75 to $100. You need this certificate in hand before you can apply for most programs. See the first-time homebuyer checklist for a full breakdown of preparation steps.

Step 4: Identify which programs apply to your situation. This depends on where you are buying (Houston city limits vs. suburb), your income level, your loan type, and fund availability. Brandon matches clients to the specific programs they qualify for based on their situation.

Step 5: Submit the DPA application alongside your mortgage application. The assistance funds flow through the title company at closing. You do not receive cash directly. The process is coordinated between your lender, the DPA program administrator, and the title company.

Mistakes That Get Buyers Disqualified

Buying outside the eligible area. HAP only covers Houston city limits. If you buy in Katy, Pearland, or Cypress, HAP does not apply, but TDHCA and TSAHC do. Know the geography before assuming which programs are available.

Income creep during the process. DPA programs have income cutoffs. If your income is close to the limit, a raise or a new second job between application and closing can push you out of eligibility. Disclose any income changes to your lender immediately.

Skipping the homebuyer education course. Almost every program requires this certificate before funds can be committed. Buyers who skip it or wait until late in the process hold up their own closing.

Using an ineligible lender. Some DPA programs require you to close with an approved lender. Brandon is connected to TDHCA and TSAHC-approved programs through his lender network. If you use a lender who is not approved, you cannot access the assistance even if you qualify for it.

Assuming the money is gone. Some buyers assume DPA programs are depleted or discontinued because they have heard that from a lender who does not offer them. HAP, TDHCA, and TSAHC programs are ongoing and funded. Check current availability, not rumors.

The Numbers in Perspective

Only 24% of home purchases in 2025 were first-time buyers, down from 32% in 2023. The median age of a first-time buyer has now reached 38. A significant part of that shift is buyers waiting on the sideline because they believe they cannot afford a down payment.

On a $320,000 home, roughly the Houston median, a 3.5% FHA down payment is $11,200. With HAP covering up to $50,000, a qualifying buyer could purchase that home with zero out-of-pocket toward the down payment, with funds left to cover closing costs.

The programs exist. Most buyers just have not been told about them.

Frequently Asked Questions: Houston DPA Programs

What is the largest down payment assistance program in Houston?

The City of Houston Homebuyer Assistance Program (HAP) provides up to $50,000 in down payment and closing cost assistance. It is structured as a forgivable loan. If you live in the home for five years, you owe nothing back. Eligibility requires household income at or below 80% of the Area Median Income and the property must be within Houston city limits.

Can I get down payment assistance if I am buying in Katy, Pearland, or Cypress?

Yes. While the City of Houston HAP program only covers Houston city limits, the TDHCA My First Texas Home and TSAHC programs are available statewide, including all Houston suburbs like Katy, Pearland, Cypress, Sugar Land, and Spring. TSAHC provides a true grant of 2% to 5% of the loan amount that never needs to be repaid.

Do I have to be a first-time homebuyer to qualify for Houston DPA programs?

Most programs define first-time buyer as someone who has not owned a principal residence in the past three years. TSAHC programs may also be available to repeat buyers in some cases. Veterans may qualify for TDHCA programs regardless of prior homeownership.

What is the difference between TDHCA and TSAHC down payment assistance?

TDHCA My First Texas Home provides 2% to 5% of the loan amount as a deferred second loan at 0% interest, repayable when you sell or refinance. TSAHC provides 2% to 5% of the loan amount as a true grant that never needs to be repaid under any circumstances. Both are available statewide and require a credit score of 620 or above.

How long does the DPA application process take?

The DPA application runs alongside your mortgage application. The key steps are getting pre-approved, completing an 8-hour homebuyer education course, confirming income eligibility, and submitting the DPA application with your mortgage paperwork. The assistance funds flow through the title company at closing. Start the process early because the homebuyer education course alone takes a day to complete.

For more on Houston down payment assistance: Houston Down Payment Assistance Guide

For FHA loan details: FHA Loans Houston TX

For first-time buyer preparation: First-Time Homebuyer Checklist

For pre-approval information: Mortgage Pre-Approval Houston

Brandon Huynh, NMLS #2522494. Lock It Mortgage, powered by Swift Home Loans Inc., NMLS #2075228. Down payment assistance program details are current as of March 2026 and subject to change. Program availability, eligibility requirements, and funding levels may change without notice. This content is for informational purposes only and does not constitute a commitment to lend or a loan approval. All loans are subject to credit approval. Equal Housing Lender.