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Homebuyer Programs in Houston, TX (2026)

Last updated April 6, 2026 | Population: 2,319,119 | Median home price: $335,000 | Est. closing costs: $6,500 - $10,000

Skyline of Houston, TX

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.

Top Homebuyer Programs in Houston

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
Harris County Down Payment Assistance Program (DAP)
Type:
Forgivable Loan
Amount:
Up to $23,800
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
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
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. 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.

  2. 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.

  3. 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).

  4. 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.

  5. 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.

  6. 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.

  7. 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

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