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Homebuyer Programs in Baytown, TX (2026)

Last updated April 6, 2026 | Population: 85,205 | Median home price: $240,000 | Est. closing costs: $5,000 - $7,000

Skyline of Baytown, TX

Baytown is an incorporated city in Harris County along the Houston Ship Channel with a median home price around $240,000. The City of Baytown operates its own First-Time Homebuyer Assistance Program, providing up to 5% of the home sales price as a forgivable loan for down payment and closing costs, funded through the federal Community Development Block Grant program. This is a strong local option as Baytown is excluded from the broader Harris County Down Payment Assistance Program because the city runs its own program. Baytown Habitat for Humanity also builds affordable homes with zero-interest mortgages for qualifying families. At the state level, the Homes for Texas Heroes Program and Home Sweet Texas offer grants of 3% to 5% of the loan amount, and My First Texas Home provides up to 5% assistance. By combining city and state programs, eligible Baytown buyers could receive $20,000 or more in total down payment and closing cost assistance.

Top Homebuyer Programs in Baytown

City of Baytown First-Time Homebuyer Assistance Program
Type:
Forgivable Loan
Amount:
Up to 5% of the home sales price
First-time only:
Yes
FHA Loans
Type:
Government-Insured Mortgage
Amount:
Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026)
First-time only:
No
FHLBA Community Partners Product
Type:
Forgivable Loan
Amount:
Up to $20,000 in home purchase assistance for down payment and closing costs
First-time only:
No
FHLBA First Time Homebuyer Product
Type:
Forgivable Loan
Amount:
Up to $17,500 in home purchase assistance for down payment and closing costs
First-time only:
Yes
FHLBA Workforce Housing Plus+
Type:
Forgivable Loan
Amount:
Up to $15,000 in home purchase assistance for down payment and closing costs
First-time only:
No
Good Neighbor Next Door (HUD)
Type:
Government Property Sale Program
Amount:
50% discount off the list price of HUD-owned homes
First-time only:
Yes
Home Possible Mortgage (Freddie Mac)
Type:
Government-Guaranteed Mortgage
Amount:
Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
First-time only:
No
HomeReady Mortgage (Fannie Mae)
Type:
Government-Guaranteed Mortgage
Amount:
Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
First-time only:
No
HUD $100 Down Program
Type:
FHA-Financed HUD REO Purchase
Amount:
Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs.
First-time only:
No
USDA Rural Development Loans
Type:
Government-Guaranteed Mortgage
Amount:
100% financing (no down payment required); loan amount up to appraised value
First-time only:
No
VA Loans
Type:
Government-Guaranteed Mortgage
Amount:
No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026)
First-time only:
No
Baytown Habitat for Humanity Homeownership Program
Type:
Zero-Interest Loan
Amount:
Zero-interest mortgage on a Habitat-built home
First-time only:
No
Home Sweet Texas Home Loan Program
Type:
Grant
Amount:
Up to 5% of the total loan amount
First-time only:
No
Homes for Texas Heroes Program
Type:
Grant
Amount:
Up to 5% of the loan amount (between 3% and 5%)
First-time only:
No
My First Texas Home
Type:
Forgivable Loan
Amount:
Up to 5% of the first lien mortgage amount
First-time only:
Yes
SETH 5 Star Texas Advantage Program
Type:
Forgivable Loan
Amount:
Up to 5% of the loan amount
First-time only:
No

How to Apply

  1. Step 1:

    Check your eligibility. The City of Baytown program requires household income at or below 80% of the Area Median Income (for example, $80,830 for a family of four). You must be a first-time buyer who has not owned a home in the past 3 years, and all household members must be legal U.S. residents.

  2. Step 2:

    Complete homebuyer education. A HUD-approved 8-hour homebuyer education course is required before you can apply to the City of Baytown program. Online courses are available through TDHCA Texas Homebuyer U.

  3. Step 3:

    Contact the City of Baytown Planning and Development Services. Stephany Medina, Community Outreach Specialist, can walk you through the application process. Call 281-420-5398 or visit 2401 Market Street, Baytown, TX 77520.

  4. Step 4:

    Secure mortgage financing. You must obtain a mortgage pre-approval before applying for the city program. The buyer must contribute a minimum of 2% of the sales price from personal funds.

  5. Step 5:

    Get pre-approved through a participating state lender. Work with a lender who participates in TSAHC or TDHCA state homebuyer programs to combine the city forgivable loan with state-level down payment assistance grants.

  6. Step 6:

    Find an eligible home. The property must be a single-family detached residence within Baytown city limits. You may not be related to the property owner or seller.

  7. Step 7:

    Submit your application and close. Apply online at css.baytown.org. The city forgivable loan is fully forgiven after 5 years of owner-occupancy.

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