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

Not for all programs. The City of Houston HAP program is available to first-time homebuyers and those who have not owned a home in the past three years. TSAHC's My Choice Texas Home program is available to repeat buyers. Harris County DPA has different eligibility tiers. Brandon can review which programs you qualify for regardless of your homebuyer status.

Is Houston down payment assistance forgivable?

Some programs are forgivable. The City of Houston HAP assistance is forgivable after you live in the home for a specified period, typically 5 to 10 years depending on the amount. TSAHC offers both forgivable and repayable options depending on the specific program. Harris County DPA has forgiveness provisions tied to occupancy requirements. Each program has its own terms.

What are the income limits for Houston DPA programs?

Income limits vary by program and household size. The City of Houston HAP generally requires household income at or below 80% of the area median income. TSAHC programs have their own income limits that vary by county and household size. Harris County DPA has income thresholds that align with HUD guidelines. Current limits change annually, so contact Brandon for the most up-to-date figures for your household.

How long does it take to get down payment assistance?

Processing times vary. TSAHC programs are processed through your lender and typically add 1 to 2 weeks to the normal loan timeline. City of Houston HAP and Harvey HbAP require a separate application and approval process, which can take 4 to 8 weeks depending on demand and documentation. Starting the process early is important. Brandon handles the DPA application alongside your mortgage so the timelines run in parallel.

Can I use DPA for closing costs too?

Yes, several programs cover both down payment and closing costs. The City of Houston HAP and Harvey HbAP 2.0 can be applied to both. TSAHC programs specifically designate funds for down payment and closing cost assistance. The total amount available depends on the program and your purchase price.

What credit score do I need for down payment assistance?

Most DPA programs require a minimum credit score of 580 to 620 because they pair with FHA or conventional loans. TSAHC programs generally require at least a 620 credit score. City of Houston HAP works with FHA loans, so 580 is often sufficient. If your score is below 580, you may need to improve it before qualifying for DPA. See bad credit mortgage options for help improving your score.

Down Payment Assistance Houston | Up to $125K Programs

Q: What down payment assistance programs are available in Houston?

Houston has several DPA programs: the City of Houston Homebuyer Assistance Program (up to $50,000 forgivable), Harvey Homebuyer Assistance Program 2.0 (up to $125,000 total assistance), TSAHC My First Texas Home and My Choice Texas Home programs (up to 5% of loan amount), and Harris County Community Services DPA (up to $25,000). Eligibility varies by program based on income, location, and buyer status.

Q: Can I combine DPA with an FHA loan?

Yes. Most Houston DPA programs are designed to pair with FHA, VA, or conventional loans. FHA is the most common pairing because it requires only 3.5% down and accepts lower credit scores. The DPA covers your down payment and sometimes closing costs, which means you may be able to buy a home with little to no cash out of pocket.

Houston Down Payment Assistance Programs

The down payment is the biggest barrier to homeownership for most Houston buyers. A 2024 National Association of Realtors survey found that 60% of first-time buyers cited saving for a down payment as the most difficult step. The good news is that Houston has multiple programs designed to eliminate or reduce that barrier.

These programs provide grants, forgivable loans, or deferred second liens that cover your down payment and sometimes your closing costs. Some require repayment only if you sell or refinance within a certain period. Others are fully forgivable after you live in the home for a set number of years.

As a mortgage broker, I help Houston buyers navigate which programs they qualify for and pair the right DPA with the right loan. The programs below are the major options available right now.

Program	Max Assistance	Forgivable?	Key Eligibility
City of Houston HAP	Up to $50,000	Yes, after occupancy period	Income at or below 80% AMI, first-time buyer or 3-year gap, City of Houston limits
Harvey HbAP 2.0	Up to $125,000 total	Varies by component	Must purchase in Harvey-impacted area, income limits apply
TSAHC My First Texas Home	Up to 5% of loan amount	Yes, after 3 years	First-time buyer, income limits by county, 620+ credit score
TSAHC My Choice Texas Home	Up to 5% of loan amount	Yes, after 3 years	Repeat buyers eligible, income limits by county, 620+ credit score
Harris County DPA	Up to $25,000	Varies	Must purchase in Harris County, income limits apply

City of Houston Homebuyer Assistance Program (Up to $50,000)

The City of Houston Homebuyer Assistance Program is one of the most generous municipal DPA programs in Texas. It provides up to $50,000 in assistance for down payment and closing costs to eligible buyers purchasing within the City of Houston.

How it works. The assistance comes as a forgivable loan secured by a lien on your property. If you live in the home as your primary residence for the required occupancy period, the loan is forgiven. If you sell, refinance, or move out before the forgiveness period ends, you repay the prorated balance.

Eligibility requirements:

First-time homebuyer, or have not owned a home in the past 3 years
Household income at or below 80% of the area median income (AMI)
Purchase price within program limits
Property must be within City of Houston boundaries
Must complete HUD-approved homebuyer education course
Must occupy the home as your primary residence

What it covers. The funds can be applied to your down payment, closing costs, or a combination of both. On a $250,000 home with an FHA loan requiring 3.5% down ($8,750), the HAP program covers the full down payment and potentially all of your closing costs with funds to spare.

Funding availability matters. The City of Houston HAP program operates on allocated funding cycles. When funds are available, applications are processed on a first-come, first-served basis. When funds run out, the program pauses until new funding is allocated. Brandon monitors funding availability and can tell you whether the program is currently accepting applications. Call 832-997-1527.

Harvey Homebuyer Assistance Program 2.0 (Up to $125,000)

The Harvey HbAP 2.0 is funded through Community Development Block Grant Disaster Recovery (CDBG-DR) funds allocated to Houston after Hurricane Harvey. This program provides up to $125,000 in total assistance, making it one of the largest DPA programs in the country.

How it works. The assistance can cover down payment, closing costs, and in some cases gap financing to bridge the difference between the loan amount and the purchase price. The structure and forgiveness terms vary depending on the specific component of assistance you receive.

Eligibility requirements:

Must purchase in a Harvey-impacted area (most of Houston qualifies)
Income limits apply based on household size and area median income
Must complete homebuyer education
Primary residence requirement
Property must meet program standards

Why this program stands out. The $125,000 maximum is far higher than any other local DPA program. For buyers purchasing in neighborhoods that were heavily impacted by Harvey, this program can cover a significant portion of the total purchase. The program was designed to bring homeownership back to communities that were displaced by the storm.

TSAHC Down Payment Assistance

The Texas State Affordable Housing Corporation (TSAHC) operates two statewide programs that Houston buyers can access: My First Texas Home and My Choice Texas Home.

My First Texas Home

Assistance: Up to 5% of the mortgage loan amount for down payment and closing costs

Forgiveness: Fully forgivable after 3 years of occupancy

Credit score: Minimum 620

Buyer status: First-time homebuyers only (have not owned in past 3 years)

Income limits: Vary by county and household size. Updated annually by TSAHC.

My Choice Texas Home

Assistance: Up to 5% of the mortgage loan amount for down payment and closing costs

Forgiveness: Fully forgivable after 3 years of occupancy

Credit score: Minimum 620

Buyer status: Repeat buyers eligible (this is the key difference from My First Texas Home)

Income limits: Vary by county and household size. Updated annually by TSAHC.

How TSAHC programs work. Unlike city-level programs that require a separate application process, TSAHC assistance is processed through your lender. Brandon submits the DPA application alongside your mortgage application, so both move through underwriting at the same time. This streamlines the process and avoids separate approval delays.

On a $300,000 FHA loan, 5% TSAHC assistance equals $15,000. FHA requires 3.5% down ($10,500), so the TSAHC grant covers your full down payment plus $4,500 toward closing costs. For many buyers, this means buying a home with little to no cash out of pocket beyond inspection and appraisal fees paid upfront.

Harris County DPA Programs

Harris County Community Services Department offers down payment assistance for buyers purchasing within Harris County but outside the City of Houston limits. This covers a large portion of the Houston metro area including unincorporated Harris County communities.

Assistance amount: Up to $25,000 for down payment and closing costs.

Eligibility: Income limits based on HUD guidelines for Harris County. Must purchase within Harris County boundaries. Primary residence requirement. Homebuyer education may be required.

If you are buying in areas like Spring, Humble, Atascocita, Baytown, or other Harris County communities outside Houston city limits, this program may be available to you in addition to or instead of the City of Houston HAP.

Eligibility Requirements

While each program has its own specific rules, most Houston DPA programs share common eligibility themes.

Income limits. Most programs cap household income at 80% to 120% of the area median income, depending on the program. For Houston, this means a household of four might qualify with income up to approximately $75,000 to $110,000 depending on the specific program and year. These limits are updated annually.

First-time buyer status. Most programs define "first-time buyer" as someone who has not owned a home in the past three years. If you owned a home five years ago and have been renting since, you qualify as a first-time buyer under most programs. TSAHC My Choice Texas Home does not require first-time buyer status at all.

Homebuyer education. Nearly all DPA programs require completion of a HUD-approved homebuyer education course. These courses are available online and in person, typically taking 6 to 8 hours. Brandon can recommend approved courses that satisfy the requirements for the programs you are applying to.

Credit score. Most DPA programs pair with FHA or conventional loans, so the minimum credit score is typically 580 for FHA or 620 for conventional and TSAHC programs. If your credit is below 580, see our bad credit mortgage options for paths to improve your score before applying for DPA.

Primary residence. All DPA programs require you to live in the home as your primary residence. These funds cannot be used for investment properties or second homes.

How to Combine DPA with FHA, VA, or Conventional Loans

DPA programs are not standalone loans. They layer on top of your primary mortgage to cover the down payment and closing costs that the mortgage itself does not finance.

DPA + FHA loan. This is the most common combination for Houston first-time buyers. FHA requires 3.5% down with a 580+ credit score. A DPA grant covers that 3.5% plus closing costs. Result: you buy a home with minimal cash out of pocket. Learn more: FHA Loans Houston.

DPA + conventional loan. Conventional loans require as little as 3% down with a 620+ credit score. DPA covers the down payment. The advantage of conventional over FHA is that mortgage insurance can be removed once you reach 20% equity, while FHA mortgage insurance lasts the life of the loan. Learn more: Conventional Loans Houston.

DPA + VA loan. VA loans require zero down payment for eligible veterans and active-duty service members. DPA can still be used to cover closing costs, which typically run 2% to 5% of the purchase price. This combination gives veterans a true zero-out-of-pocket purchase.

Multiple programs can sometimes be stacked. In certain cases, buyers qualify for more than one DPA program. For example, you might qualify for both TSAHC and Harris County DPA. Stacking depends on program rules and lender guidelines. Brandon reviews all available programs for your situation and identifies the best combination.

Frequently Asked Questions

What down payment assistance programs are available in Houston?

Houston has several major DPA programs. The City of Houston Homebuyer Assistance Program provides up to $50,000 in forgivable assistance. The Harvey HbAP 2.0 offers up to $125,000 total. TSAHC runs the My First Texas Home and My Choice Texas Home programs with up to 5% of the loan amount. Harris County DPA provides up to $25,000. Eligibility varies by income, location, buyer status, and credit score.

Do I have to be a first-time homebuyer?

Not for all programs. TSAHC My Choice Texas Home is available to repeat buyers. Most other programs define "first-time buyer" as someone who has not owned a home in the past 3 years. If you sold a home 4 years ago and have been renting since, you qualify as first-time under most programs.

Is the assistance forgivable?

Many programs offer forgiveness. City of Houston HAP is forgivable after a required occupancy period, typically 5 to 10 years depending on the assistance amount. TSAHC grants are forgivable after 3 years of occupancy. Harris County DPA has its own forgiveness provisions. If you sell or refinance before the forgiveness period ends, you may need to repay a prorated portion.

What are the income limits?

Income limits vary by program, household size, and year. Generally, the City of Houston HAP requires income at or below 80% of area median income. TSAHC programs have county-specific limits. Harris County DPA follows HUD income guidelines. A family of four in Houston might qualify with household income up to $75,000 to $110,000 depending on the program. Brandon can check current limits for your household.

Can I combine DPA with an FHA loan?

Yes. FHA + DPA is the most common pairing for Houston first-time buyers. FHA requires 3.5% down at 580+ credit, and DPA covers that down payment plus closing costs. This lets you buy a home with minimal cash out of pocket. DPA also works with conventional and VA loans.

How long does the process take?

TSAHC programs are processed through your lender and add 1 to 2 weeks to the normal timeline. City of Houston HAP and Harvey HbAP require separate applications that can take 4 to 8 weeks. Starting early is important. Brandon submits the DPA application alongside your mortgage so both processes run in parallel.

Can DPA cover closing costs too?

Yes. Most Houston DPA programs cover both down payment and closing costs. The City of Houston HAP, Harvey HbAP 2.0, and TSAHC programs all allow funds to be applied to closing costs. The total available depends on the program and your purchase price.

What credit score do I need?

Most programs require 580 to 620 because they pair with FHA or conventional loans. TSAHC requires 620 minimum. City of Houston HAP works with FHA, so 580 may be sufficient. If your score is below 580, work on improving it before applying. See: Bad Credit Mortgage Houston.

Apply for Down Payment Assistance

Brandon works with all major Houston DPA programs and can tell you which ones you qualify for in a single consultation. The process starts with a pre-approval to determine your loan amount, then identifying the best DPA match for your income, location, and homebuyer status.

Related Resources

First-Time Homebuyer Houston - Complete guide for first-time buyers
FHA Loans Houston - The most common loan paired with DPA
Conventional Loans Houston - Another option for DPA pairing
Mortgage Pre-Approval Houston - Start the process today
Bad Credit Mortgage Houston - Options for lower credit scores

Find Out Which DPA Programs You Qualify For

Houston has programs that cover your down payment and closing costs. Brandon reviews your income, credit, and location to identify every program available to you. Free consultation, no obligation.

5-Star Rated on Google Talk to Brandon About DPA Programs

Brandon Huynh

Mortgage Loan Officer | NMLS #2522494

I help Houston buyers access down payment assistance programs and pair them with the right mortgage. Bilingual in Vietnamese. Available 7 days a week.

832-997-1527