What down payment assistance is available in Houston TX?

Houston buyers have access to 10+ DPA programs. The City of Houston HAP offers up to $50,000 as a forgivable loan. Harris County DAP provides up to $23,800. State programs include TSAHC Home Sweet Texas (5% grant), TDHCA My First Texas Home (5% deferred), and SETH 5 Star (5% grant). Credit scores start at 580 for some programs.

What is the Houston Homebuyer Assistance Program (HAP)?

Houston HAP provides up to $50,000 as a no-interest forgivable loan. The full amount is forgiven after 5 years of continuous residency. First-time buyers at 80% AMI or below ($80,900 for a family of 4). No minimum credit score required by the program itself. 8-hour HUD-approved homebuyer education course required.

What credit score do I need for DPA in Houston?

Credit score minimums vary: Harris County DAP starts at 580, Houston HAP has no program-set minimum (lender standards apply), TSAHC and TDHCA require 620, SETH 5 Star requires 640. Most Houston buyers with 620+ credit have access to the full range of programs.

Do I have to be a first-time buyer for Houston DPA?

Not for all programs. TSAHC Home Sweet Texas and SETH 5 Star do not require first-time buyer status. Houston HAP, Harris County DAP, and TDHCA My First Texas Home require first-time buyer status (no homeownership in past 3 years).

What is the FHA loan limit in Houston?

The FHA loan limit for Harris County is $541,287 for a single-family home in 2025-2026. Houston's median price of approximately $340,000 is well below this limit, meaning all FHA-based DPA programs work on the vast majority of Houston purchases.

Can I combine DPA programs in Houston?

Some programs can be combined. TSAHC and TDHCA programs include their own first mortgage products with built-in DPA. Houston HAP and Harris County DAP may layer on top of other financing. SETH 5 Star pairs with SETH's own mortgage product. Confirm stacking eligibility with your lender before making assumptions.

What is the difference between Houston HAP and Harris County DAP?

Houston HAP ($50K forgivable) covers properties within City of Houston limits. Harris County DAP ($23.8K forgivable) covers unincorporated Harris County areas OUTSIDE Houston city limits. They serve different geographic areas. You qualify for one or the other based on where the property is located, not where you currently live.

What income limits apply for Houston DPA?

Houston HAP and Harris County DAP cap at 80% AMI ($80,900 for family of 4). TDHCA programs cap at approximately 115% AMI (~$116,000). TSAHC limits vary by county. SETH 5 Star has its own income limits. The key: a household earning $80,000 qualifies for the city program, and a household earning $100,000+ still qualifies for multiple state programs.

How long does it take to get DPA in Houston?

Timeline varies by program. Houston HAP requires an 8-hour education course upfront which can take 1-2 weeks to schedule. TSAHC and TDHCA process through your lender and add 1-2 weeks to a standard closing timeline. Start the education course and lender selection early to avoid delays.

Can veterans get DPA in Houston?

Yes. TSAHC Homes for Texas Heroes offers up to 5% as a grant specifically for veterans, active military, teachers, police, firefighters, and other public servants. TDHCA waives the first-time buyer requirement for veterans. VA loans (0% down) can be paired with TSAHC or SETH programs for closing cost coverage.

Down Payment Assistance Houston TX 2026 | 10+ Programs, Up to $50K City Grant

Last updated: April 2026 · Program availability changes frequently

Down Payment Assistance in Houston: Overview

Houston is one of the strongest DPA markets in the country. The city's median home price sits around $340,000. A 3.5% FHA down payment on that is roughly $11,900. The City of Houston's Homebuyer Assistance Program covers up to $50,000 as a forgivable loan. That is more than four times the minimum down payment on a median-priced home. The math here is not close.

Beyond the city program, Houston buyers have access to three separate layers of assistance: Harris County DAP (up to $23,800 for properties outside city limits), four statewide programs through TSAHC and TDHCA (each offering up to 5% of the loan amount), and the SETH 5 Star program covering Southeast Texas. A first-time buyer earning $75,000 with a 620 credit score qualifies for multiple programs simultaneously.

Harris County's Area Median Income is approximately $101,100 for a family of four. The city HAP program caps at 80% AMI ($80,900). But TDHCA programs extend to approximately 115% AMI ($116,000+), and TSAHC has its own county-specific limits that often reach higher. A household earning $100,000 is not disqualified from DPA in Houston. It just shifts which programs apply.

The FHA loan limit for Harris County is $541,287. Houston's median is $340,000. That gap means every FHA-based DPA program works on essentially every home purchase in the city. There is no price ceiling problem here like in California coastal markets. This guide covers what is open, who qualifies, and how the programs fit together.

Quick Answer

Yes. Houston has one of the deepest DPA landscapes in Texas, with 10+ programs across city, county, and state levels.

The City of Houston HAP provides up to $50,000 as a forgivable loan, forgiven after 5 years. On a $340,000 purchase, that covers the entire 3.5% FHA down payment ($11,900) plus all closing costs with money left over. TSAHC offers up to 5% as a true grant with no repayment. Credit scores start at 580 for some county programs.

The key decision for most Houston buyers is which program layer to use: city HAP (highest dollar, income-restricted), TSAHC/TDHCA state programs (higher income limits, repeat buyers OK), or a combination. Your lender should run scenarios across all three.

Houston and Harris County Programs

Verify Funding City of Houston

Houston Homebuyer Assistance Program (HAP)

Amount: Up to $50,000

Type: Forgivable loan (forgiven after 5 years)

Income limit: 80% AMI (~$80,900 for family of 4)

First-time buyer: Required

Credit score: No program minimum (lender standards apply)

Min buyer contribution: $350

Requires 8-hour HUD-approved homebuyer education course. Fixed-rate mortgage only. Liquid assets must be under $30,000. Property must pay taxes to City of Houston. DTI limits: 33% front-end / 45% back-end.

Verify Funding Harris County

Harris County Down Payment Assistance (DAP)

Amount: Up to $23,800

Type: Forgivable loan (5-10 year period)

Income limit: 80% AMI (~$80,900)

First-time buyer: Required

Credit score: 580 minimum

Coverage: Unincorporated Harris County (outside Houston city limits)

Includes coverage for home warranty and flood insurance. Liquid assets must be under $10,000. Requires 8-hour HUD-approved course (in-person). Excludes City of Houston, Pasadena, and Baytown.

City vs. County: Houston HAP and Harris County DAP cover different geographic areas. Houston HAP = properties inside Houston city limits. Harris County DAP = properties in unincorporated Harris County outside Houston. You cannot use both. Which one applies depends on where the property is located, not where you currently live.

How DPA Programs Work in Houston

True Grants

Money you never repay. TSAHC Home Sweet Texas and SETH 5 Star both offer grant options up to 5% of the loan amount. On a $340K purchase, 5% = $17,000. No lien, no repayment, no strings. This is the cleanest form of assistance. It is also the one most buyers do not know exists.

Forgivable Loans

Forgiven after a set period if you stay in the home. Houston HAP forgives after 5 years. Harris County DAP forgives in 5-10 years depending on amount. TSAHC also offers a 3-year forgivable second lien option. The practical effect: stay in the house and the debt disappears. Sell or refinance before the period ends and you repay it.

Deferred Second Mortgages

No monthly payment. Repaid when you sell or refinance. TDHCA My First Texas Home and My Choice Texas Home use this structure. The balance sits quietly until a triggering event. That keeps your monthly payment lower, but the deferred amount reduces your net proceeds at sale. It is a cost shifted, not eliminated.

Mortgage Credit Certificate (MCC)

Not DPA in the traditional sense, but worth knowing. TSAHC and TDHCA offer MCCs that give you a federal tax credit of up to 40% of your annual mortgage interest. On a $300K loan at 7%, that is approximately $8,400/year in tax credits. It effectively reduces your monthly housing cost. Can be paired with DPA programs.

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Texas DPA Programs DPA in Dallas DPA in San Antonio DPA in Austin DPA in Fort Worth First-Time Buyer Guide: Texas Chenoa Fund Guide Eligibility Tool

This guide is for informational purposes only and is not a commitment to lend. Program availability, terms, and eligibility requirements change frequently. All program details should be verified directly with the administering agency or an approved lender before making financial decisions. DownPaymentScout is an independent resource and is not affiliated with any government agency or lending institution. Information is believed accurate as of the date shown but is not guaranteed. Last updated April 2026. Program availability changes frequently.

Down Payment Assistance in Houston, Texas