See programs you qualify for

By Tyler Thompson · Licensed Real Estate Agent · Updated April 6, 2026

Homebuyer Programs in Houston, TX (2026)

Population: 2,319,119 | Median home price: $335,000 | Est. closing costs: $6,500 - $10,000

Houston is the largest city in Texas and the fourth-largest in the United States, anchored by a diverse economy spanning energy, healthcare, aerospace, and manufacturing. With a median home price around $335,000, Houston offers more affordable homeownership than many major metros. The City of Houston Homebuyer Assistance Program provides up to $50,000 as a forgivable loan for first-time buyers, while the Harvey Homebuyer Assistance Program 2.0 offers up to $125,000 for residents impacted by Hurricane Harvey. The Houston Community Land Trust Homebuyer Choice Program can provide up to $150,000 in grant assistance. At the state level, the My First Texas Home program and TSAHC Home Sweet Texas program each offer up to 5% of the loan amount in down payment assistance as a grant or forgivable loan. By combining city and state programs, Houston homebuyers can potentially stack tens of thousands of dollars in assistance toward their purchase.

City Programs in Houston

Program Name	Type	Amount	First-Time Only	Details
City of Houston Homebuyer Assistance Program (HAP)	Forgivable Loan	Up to $50,000	Yes	View →
Houston Harvey Homebuyer Assistance Program 2.0 (HbAP 2.0)	Forgivable Loan	Up to $125,000	Yes	View →

City of Houston Homebuyer Assistance Program (HAP)

Type:: Forgivable Loan
Amount:: Up to $50,000
First-time only:: Yes

Houston Harvey Homebuyer Assistance Program 2.0 (HbAP 2.0)

Type:: Forgivable Loan
Amount:: Up to $125,000
First-time only:: Yes

County Programs in Harris County

Program Name	Type	Amount	First-Time Only	Details
Harris County Down Payment Assistance Program (DAP)	Forgivable Loan	Up to $23,800	Yes	View →

Harris County Down Payment Assistance Program (DAP)

Type:: Forgivable Loan
Amount:: Up to $23,800
First-time only:: Yes

State Programs in Texas

Program Name	Type	Amount	First-Time Only	Details
Home Sweet Texas Home Loan Program	Grant	2%, 3%, 4% or 5% of the total loan amount (borrower chooses); grant on FHA/VA/USDA loans or 0% 3-year forgivable second lien	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 →

Home Sweet Texas Home Loan Program

Type:: Grant
Amount:: 2%, 3%, 4% or 5% of the total loan amount (borrower chooses); grant on FHA/VA/USDA loans or 0% 3-year forgivable second lien
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

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 →

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

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

Nonprofit Programs

Program Name	Type	Amount	First-Time Only	Details
Houston Community Land Trust Homebuyer Choice Program	Grant	Up to $150,000	Yes	View →
Houston Habitat for Humanity Homeownership Program	Zero-Interest Loan	Varies based on home cost and family need	Yes	View →

Houston Community Land Trust Homebuyer Choice Program

Type:: Grant
Amount:: Up to $150,000
First-time only:: Yes

Houston Habitat for Humanity Homeownership Program

Type:: Zero-Interest Loan
Amount:: Varies based on home cost and family need
First-time only:: Yes

Free eligibility check

16 programs available in Houston. See which ones you qualify for.

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How to Apply

Step 1: Check your eligibility. Most Houston programs require household income at or below 80% of the Area Median Income and first-time homebuyer status (no homeownership in the past 3 years). State programs like Home Sweet Texas do not require first-time buyer status.

Step 2: Complete homebuyer education. Obtain a certificate from a HUD-approved counseling agency. Avenue CDC offers an 8-hour HUD-certified course in English and Spanish for $100. Call 713.864.9099 or email classes@avenuecdc.org to register.

Step 3: Contact the City of Houston Housing and Community Development Department. Call 832.394.6200 to learn about the Homebuyer Assistance Program (up to $50,000) and the Harvey Homebuyer Assistance Program 2.0 (up to $125,000 for Harvey-impacted residents).

Step 4: Explore state programs. Take the TSAHC online eligibility quiz at tsahc.org to see if you qualify for up to 5% DPA through Home Sweet Texas or Homes for Texas Heroes. Also check the TDHCA My First Texas Home program at welcomehome.tdhca.texas.gov.

Step 5: Get pre-approved for a mortgage. Work with a lender who participates in the state DPA programs you qualify for. Ask your lender about combining city and state assistance.

Step 6: Find a home within program limits. For city programs, the home must be within Houston city limits and pay taxes to the City of Houston. Search for homes that meet any applicable price restrictions.

Step 7: Submit your application. Work with your lender and the City of Houston HCD to submit all required documentation. Processing times vary, so apply early in your homebuying process.

Frequently Asked Questions

How much down payment assistance can I get in Houston?+

Houston buyers can access substantial assistance by combining programs. The City of Houston Homebuyer Assistance Program offers up to $50,000 as a forgivable loan. The Harvey Homebuyer Assistance Program 2.0 provides up to $125,000 for Harvey-impacted residents. The Houston Community Land Trust offers up to $150,000 in grants (currently waitlisted). State programs like My First Texas Home and Home Sweet Texas add up to 5% of your loan amount. On a $335,000 home, state DPA alone could mean roughly $16,750 in additional assistance.

Do I have to be a first-time homebuyer to qualify?+

Most Houston city programs require first-time buyer status, defined as not having owned a home in the past 3 years. However, two key state programs do not require first-time buyer status: the TSAHC Home Sweet Texas program and the SETH 5 Star Texas Advantage Program are both open to repeat buyers. The Homes for Texas Heroes program is also open to repeat buyers if you work in an eligible profession such as teaching, law enforcement, or emergency services.

What is the income limit for Houston homebuyer programs?+

Most Houston city and county programs require household income at or below 80% of the Area Median Income (AMI). The specific dollar amount varies by household size and is updated annually by HUD. State program income limits vary by county and can range from approximately $63,040 to $163,520 depending on location, household size, and loan type. Check the TSAHC eligibility quiz or TDHCA income limits for current figures specific to Harris County.

What homebuyer education is required?+

All Houston city programs and most state programs require completion of a HUD-approved homebuyer education course. Avenue CDC is a local HUD-approved counseling agency that offers an 8-hour course in English and Spanish for $100. The certificate is valid for 12 months. For state programs, TDHCA and SETH each have their own approved education courses. Contact Avenue CDC at 713.864.9099 or email classes@avenuecdc.org.

Can I use Houston programs if I was affected by Hurricane Harvey?+

Yes. The Harvey Homebuyer Assistance Program 2.0 (HbAP 2.0) is specifically designed for Houston residents impacted by Hurricane Harvey. It offers up to $125,000 in assistance covering down payment, closing costs, principal reduction, and interest rate reduction. To qualify, you must have lived within the City of Houston jurisdiction on August 25, 2017. The City of Houston HCD hosts virtual quarterly trainings throughout 2026 for applicants and partners.

What about assistance in unincorporated Harris County outside Houston city limits?+

Residents purchasing homes in unincorporated Harris County (outside Houston, Pasadena, and Baytown city limits) can apply for the Harris County Down Payment Assistance Program, which offers up to $23,800 as a forgivable loan forgiven after 5 years. The maximum purchase price is $200,000 for existing homes and $228,000 for new construction. A 620 credit score is required. State programs are also available regardless of whether you are inside or outside Houston city limits.