See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated April 7, 2026
Homebuyer Programs in Friendswood, TX (2026)
Friendswood is an upscale suburban community straddling Galveston County and Harris County, southeast of Houston, known for its excellent schools and family-friendly neighborhoods. With a median home price around $490,000, Friendswood sits above the Texas average but offers strong value for the Houston metro area. While Friendswood does not currently have a city-funded or county-funded down payment assistance program, buyers here can access several Texas state programs. The SETH 5 Star Texas Advantage Program and TDHCA My First Texas Home each provide up to 5% of the loan amount in down payment and closing cost assistance, which on a Friendswood home could mean over $20,000 in combined state aid. Bay Area Habitat for Humanity also serves the Friendswood area with affordable homeownership programs for qualifying families.
State Programs in Texas
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Home Sweet Texas Home Loan Program | Grant | Up to 5% of the total loan amount | No | View → |
| Homes for Texas Heroes Program | Grant | Up to 5% of the loan amount (between 3% and 5%) | No | View → |
| My First Texas Home | Forgivable Loan | Up to 5% of the first lien mortgage amount | Yes | View → |
| SETH 5 Star Texas Advantage Program | Forgivable Loan | Up to 5% of the loan amount | No | View → |
- Type:
- Grant
- Amount:
- Up to 5% of the total loan amount
- First-time only:
- No
- Type:
- Grant
- Amount:
- Up to 5% of the loan amount (between 3% and 5%)
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to 5% of the first lien mortgage amount
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Up to 5% of the loan amount
- First-time only:
- No
Federal Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| FHA Loans | Government-Insured Mortgage | Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026) | No | View → |
| Good Neighbor Next Door (HUD) | Government Property Sale Program | 50% discount off the list price of HUD-owned homes | Yes | View → |
| Home Possible Mortgage (Freddie Mac) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HomeReady Mortgage (Fannie Mae) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HUD $100 Down Program | FHA-Financed HUD REO Purchase | Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs. | No | View → |
| USDA Rural Development Loans | Government-Guaranteed Mortgage | 100% financing (no down payment required); loan amount up to appraised value | No | View → |
| VA Loans | Government-Guaranteed Mortgage | No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026) | No | View → |
- 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
- Type:
- Government Property Sale Program
- Amount:
- 50% discount off the list price of HUD-owned homes
- First-time only:
- Yes
- 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
- 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
- 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
- Type:
- Government-Guaranteed Mortgage
- Amount:
- 100% financing (no down payment required); loan amount up to appraised value
- First-time only:
- No
- 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
Nonprofit Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Bay Area Habitat for Humanity Homeownership Program | Zero-Interest Loan | Affordable home purchase with zero-interest mortgage | No | View → |
- Type:
- Zero-Interest Loan
- Amount:
- Affordable home purchase with zero-interest mortgage
- First-time only:
- No
How to Apply
Step 1: Check your eligibility. Texas state programs generally require household income within county-specific limits and a credit score of 620 or higher for TDHCA programs, or 640 for the SETH 5 Star program.
Step 2: Complete homebuyer education. HUD-approved homebuyer education is required for most state programs. The SETH 5 Star program offers a free online course. Bay Area Habitat for Humanity also provides homebuyer education resources in the area.
Step 3: Get pre-approved for a mortgage. Work with a lender participating in the TDHCA or SETH programs to access state-level down payment assistance. Verify that your target home price falls within current acquisition limits for Galveston County.
Step 4: Explore nonprofit homeownership options. Bay Area Habitat for Humanity serves the Friendswood area and offers affordable homeownership programs for qualifying families.
Step 5: Find a home within program limits. Ensure the property meets any applicable purchase price caps for your chosen programs. State program acquisition limits are updated annually and vary by county.
Step 6: Submit your application and close. Your lender will coordinate state assistance funds at closing. The SETH program provides assistance as a forgivable second loan that is forgiven after 3 years.