See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated April 6, 2026
Homebuyer Programs in Pasadena, TX (2026)
Pasadena is a city of nearly 150,000 residents in Harris County, located just southeast of Houston in the greater Houston metropolitan area. With a median home price around $235,000, Pasadena offers relatively affordable housing compared to much of the Houston metro. While the city does not currently offer its own down payment assistance program, and Pasadena is excluded from both the Harris County DAP and Harris County Housing Finance Corporation programs, buyers here still have access to strong state-level options. The My First Texas Home program and the SETH 5 Star Texas Advantage Program each offer up to 5% of the loan amount in down payment assistance, and the Homes for Texas Heroes Program provides the same benefit for veterans, teachers, first responders, and corrections officers. Pasadena Habitat for Humanity also builds affordable homes with zero-interest mortgages for qualifying families. By combining state programs, eligible Pasadena buyers could access over $15,000 in total assistance toward their home purchase.
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 → |
- 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
- 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 |
|---|---|---|---|---|
| Pasadena Habitat for Humanity Homeownership Program | Zero-Interest Loan | Affordable home purchase with zero-interest mortgage sold at no profit | No | View → |
- Type:
- Zero-Interest Loan
- Amount:
- Affordable home purchase with zero-interest mortgage sold at no profit
- First-time only:
- No
How to Apply
Step 1: Check your eligibility. Most state programs require income at or below 115% of Area Median Income, with higher limits in targeted areas. You'll need a minimum credit score of 620 for TSAHC and TDHCA programs. Note that Pasadena is excluded from the Harris County DAP and Harris County Housing Finance Corporation programs, so state programs are your primary DPA options.
Step 2: Complete homebuyer education. TSAHC and TDHCA programs require completion of an approved homebuyer education course before closing. You can find HUD-approved housing counseling agencies serving the Pasadena area by calling 800-569-4287.
Step 3: Get pre-approved through a participating lender. State programs like My First Texas Home, Home Sweet Texas, and SETH 5 Star require a TSAHC-approved, TDHCA-approved, or SETH-approved lender. Ask specifically about DPA grant options vs. forgivable second lien loans, and which programs offer the best combination for your situation.
Step 4: If you are a veteran, teacher, first responder, or corrections officer, ask your lender about the Homes for Texas Heroes Program specifically, as it offers up to 5% DPA plus a free Mortgage Credit Certificate tax credit worth up to $2,000 per year.
Step 5: Find a home within program purchase price limits. TSAHC and TDHCA set acquisition cost limits by county that are updated annually. Your lender can confirm the current limit for Harris County.
Step 6: Contact Pasadena Habitat for Humanity at 702 Charles St, Pasadena, TX 77506 to ask about affordable homeownership opportunities if you qualify for their program.
Frequently Asked Questions
How much down payment assistance can I get in Pasadena?+−
Do I have to be a first-time homebuyer to qualify?+−
Why is Pasadena excluded from Harris County programs?+−
What is the maximum home price I can purchase?+−
What homebuyer education is required?+−
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