Houston Down Payment Assistance Programs: HAP, Harris County, and TSAHC

Houston buyers have four realistic down payment assistance routes, and the one you qualify for is decided by where the house sits before it is decided by what you earn. The City of Houston Homebuyer Assistance Program offers up to $75,000 inside city limits. Harris County offers up to $40,000, but only in unincorporated areas. TSAHC and SETH offer up to 5% of your loan amount and work almost anywhere in the metro. Check the address first, then the income limit.

Below is every amount, income cap, purchase price limit, credit minimum, and repayment rule, taken from each program’s own published guidelines as of September 2026. Then we show you which route fits your address, your job, and your income, so you stop guessing and start comparing. Our team works these programs alongside your first mortgage every week as a Houston mortgage lender.

Houston Down Payment Assistance Programs at a Glance

Four programs cover the Houston metro. They do not overlap the way most buyers assume, because each one draws a different map.

City of Houston Homebuyer Assistance Program Requirements

The Houston Homebuyer Assistance Program is the largest single source of help in the metro. It is a no-interest forgivable loan secured by a lien on the property, worth up to $75,000. Live in the home as your primary residence for five years and the balance is forgiven in full. Leave early and you repay a prorated share.

How Much You Can Get and How Forgiveness Works

The award is sized to your file, not handed out at the maximum. It is applied to your down payment and closing costs, and because it is structured as a forgivable lien rather than a second payment, it does not add to your monthly housing cost. The five year clock starts at closing.

Who Qualifies for HAP

• Household income at or below 80% of area median income
• First time buyer, or no ownership interest in a home for the past three years
• US citizen or permanent resident
• The property must pay taxes to the City of Houston, which is stricter than a Houston mailing address
• Front-end debt-to-income ratio at or below 33% and back-end at or below 45%
• Less than $50,000 in liquid assets at application
• A minimum buyer contribution of $350 from your own funds
• A completed HUD-approved homebuyer education certificate

Two of these surprise people. There is no minimum credit score on the city side, so a thin file is not automatically out, though your first mortgage lender will still have its own floor. And there is no purchase price cap, provided the payment is affordable to you under those debt-to-income ceilings. If your ratios are tight, read how debt-to-income ratio is calculated before you apply.

The Funding Status You Need to Check First

HAP is funded in rounds. As of September 2026 the City of Houston has stated that applications which have not yet received pre-approval are on hold until further notice. That does not close the program, and it does not affect the county or state routes at all, but it does mean the order you do things in matters. Confirm the current status on the City of Houston Housing and Community Development page before you build a plan around it, and have a second route lined up.

How Much Down Payment Assistance Can I Get in Houston

It depends on which map your address falls on and which structure the program uses.

Fixed dollar programs. Take a $300,000 home inside Houston city limits with an FHA loan. You may need a significant amount of cash to close — the down payment, closing costs and prepaid taxes and insurance together. A HAP award can cover all of it, which is how buyers reach a cash-to-close figure near zero.

Percentage programs. TSAHC and SETH size the help to the loan, not to the gap. On a $350,000 purchase with an FHA loan, the loan amount lands near $337,750, so 5% is roughly $16,880. That clears the $12,250 down payment and leaves about $4,600 toward closing costs. On a smaller loan you get proportionally less, which is why the percentage programs work best above the $300,000 mark and the fixed-dollar programs work best below it.

Run your own numbers against a real payment using our mortgage calculators before you decide which route to chase.

Harris County Down Payment Assistance for Unincorporated Areas

The Harris County Downpayment Assistance Program runs to a maximum award of $40,000, with a base of $27,100 toward down payment and closing costs before eligible incentives are added. It is structured as a silent second mortgage, so there is no monthly payment attached to it.

Why Unincorporated Area Only Is the Deciding Factor

An incorporated area is a city with its own government, such as Houston, Katy, Pasadena, or Baytown. An unincorporated area sits outside any city and is served directly by the county. The county program exists to serve those unincorporated pockets, because cities are expected to run their own buyer assistance. That is why a home inside any city limit is out, even when the mailing address says Houston. Parts of Cypress, Spring, Atascocita, and northeast Harris County fall on the eligible side of that line, but it is drawn parcel by parcel, not by neighbourhood name.

Purchase Price Caps, Credit, and the Liquid Asset Limit

• Purchase price cap of $285,000 for an existing home and $296,000 for new construction
• Minimum credit score of 580, so a 580 credit score home loan can still pair with this program
• Front-end debt-to-income ratio at or below 39% and back-end at or below 42%, which is tighter than the city program
• Minimum buyer contribution of $1,000
• Liquid assets capped at $30,000
• Homeownership education from a HUD-approved provider
• The home must sit in a qualified census tract

Those price caps matter more than any other line here. At $285,000 for an existing home, a large share of the Houston metro inventory is already above the ceiling, which is the real reason most buyers who look at this program end up on the state route instead. Full criteria are published on the Harris County Housing and Community Development site.

How Long the Affordability Period Runs

The lien stays in place for a set period based on the size of the award. Under $25,000 the affordability period is five years. Between $25,000 and $40,000 it runs ten years. Sell or move out before the period ends and repayment is triggered, so the larger award carries the longer commitment.

TSAHC Programs: Home Sweet Texas and Home for Texas Heroes

TSAHC is the Texas State Affordable Housing Corporation. Its two homebuyer programs work anywhere in Texas, which makes them the practical answer for buyers in Katy, Sugar Land, Pearland, Cypress, Conroe, and The Woodlands, where neither the city nor the county program reaches. Both give up to 5% of the loan amount, need a 620 credit score, and require approved homebuyer education before closing.

Grant or Forgivable Second Lien

• Grant. Never repaid, no lien, no clock. You usually accept a slightly higher interest rate in exchange.
• Forgivable second lien. Forgiven after three years, with a lower rate on the first mortgage in most pricing scenarios.

The right pick is arithmetic, not preference. If you are confident you will hold the home past three years, the second lien usually wins on total cost. If there is any chance of a move inside three years, take the grant. We price both side by side on the day you lock, because the spread moves.

Who Counts as a Texas Hero

Home for Texas Heroes was built for teachers, teacher aides, school librarians, school counsellors, police officers, corrections officers, firefighters, EMS personnel, veterans, and nursing and allied health faculty. If your job is on that list you get access to the same 5%, and we have a separate guide to down payment help in Texas for teachers, nurses, and veterans.

Home Sweet Texas for Everyone Else

Home Sweet Texas covers every other eligible buyer regardless of occupation. Neither program requires first time buyer status, so repeat buyers can use them, and that single fact makes TSAHC the widest net in this article. Income limits are set by county and were last revised in June 2026, with higher limits available in targeted areas. Confirm the current Harris County figure on the TSAHC homebuyer programs page, since the limits are non-household-size based and move on their own schedule.

SETH 5 Star Texas Advantage

The Southeast Texas Housing Finance Corporation runs the 5 Star Texas Advantage Program, offering up to 5% of the final loan amount. It needs a 640 minimum credit score, has no first time buyer requirement, and is available across Texas outside Travis County and the city limits of El Paso, Grand Prairie, and McKinney. Assistance is either forgiven after three years or set up as a deferred payment loan with no interest and no payments, due on sale, refinance, or at the end of 30 years. Program terms are published by SETH.

SETH and TSAHC overlap heavily. In practice the choice comes down to which one prices better with your credit profile on the day, and whether the 640 floor rules you out.

Do You Have to Pay Back Houston Down Payment Assistance?

It depends entirely on the structure, and the four programs here use three different ones.

• Grants are never repaid. The TSAHC grant option carries no lien and no holding period.
• Forgivable loans disappear on a clock. Three years for TSAHC and SETH, five years for City of Houston HAP, five or ten years for Harris County depending on the award size. Stay to the end of the period and the balance is written off. Sell, refinance out, or stop living there first and you repay a prorated share.
• Deferred loans are repaid, just not monthly. SETH’s deferred option and TDHCA’s My First Texas Home use a 0% second lien with no payments. The balance comes due when you sell, refinance, or pay off the first mortgage.

None of these adds a monthly payment. What they add is a condition on how long you stay, and that is the part to plan around.

Which Houston Down Payment Assistance Program Fits You?

Start With Location

• Inside Houston city limits, income at or under 80% AMI: start with City HAP, and check funding status first.
• Unincorporated Harris County, purchase under $285,000: check the county DAP.
• Katy, Sugar Land, Pearland, Conroe, The Woodlands, or any incorporated suburb: TSAHC or SETH.

Then Check Your Job

• Teachers, school staff, police, corrections officers, firefighters, EMS, and veterans should ask about Home for Texas Heroes before anything else.

Then Check Your Income and Credit

• Below 80% AMI opens the two largest awards, city and county.
• Above 80% AMI usually leaves TSAHC and SETH, which carry far higher county income limits.
• Under 620 credit, the state programs are out, but HAP has no score requirement and the county sits at 580.

Check the address first. Everything else is secondary, because income flexibility exists on the state route and location flexibility does not exist anywhere.

How Houston Assistance Works With FHA, VA, USDA, and Conventional Loans

Assistance is not a mortgage. It sits alongside your first mortgage and covers the cash you would otherwise bring to closing. TSAHC and SETH both pair with FHA, VA, USDA, and conventional financing, which is the widest compatibility of the four.

An FHA loan asks as little as 3.5% down, and assistance can cover that entire amount plus closing costs, which is the most common combination we write in Houston. A VA loan already requires no down payment, so assistance goes to closing costs instead and can still take thousands off your cash to close. On a conventional loan with 3% down, assistance can cover the down payment and reduce the mortgage insurance exposure that comes with a low-equity position.

Every one of these programs is for a primary residence. Investment properties and second homes do not qualify anywhere in this article. For a wider view of what else is available across the state, see our overview of state and local housing programs.

Five Mistakes That Get Houston DPA Applications Rejected

1. Choosing a Home Outside the Program’s Boundary

A Houston mailing address does not mean the property pays City of Houston taxes, and a Cypress address does not mean the parcel is unincorporated. Both programs verify at parcel level. Get the address confirmed before you fall in love with the house, not after the option period starts.

2. Skipping or Delaying the Homebuyer Education Certificate

Every program here requires a HUD-approved or program-approved course, typically six to eight hours and available online. The certificate must be in the file before closing. Book it in week one. A class date is a terrible reason to move a closing.

3. Applying for Assistance After the Loan Instead of Alongside It

Assistance files run on their own timeline and their own funding rounds. Start both at once and your closing stays inside the normal 30 to 45 days. Start the assistance file late and you will either miss a funding window or extend your contract. Our mortgage approval checklist covers what to gather up front.

4. Assuming Your Income Is Too High Without Checking

Programs count income from every adult in the household, which catches people out in the other direction too. Meanwhile the state income limits are considerably higher than most buyers expect and were raised in 2026. Add it up properly, then compare it to each limit rather than ruling yourself out.

5. Forgetting the Liquid Asset Ceiling

This is the one nobody sees coming. HAP caps liquid assets under $50,000 and Harris County caps them at $30,000. A buyer with a healthy savings balance can be income-eligible and asset-ineligible at the same time. If you are close to either line, tell us early so we can plan the file properly rather than discover it in underwriting.

Your Keys May Cost Less Than You Think

Down payment assistance in Houston is real money that goes unclaimed every year, mostly because buyers rule themselves out on a number they read on the wrong website. Between a $75,000 city award, a $40,000 county award, and two state programs with no first time buyer requirement, the odds that none of these fits your file are lower than you think.

We will check your address against all four program maps, run your income against each limit, and show you the lowest cash-to-close path available to you. The first conversation costs nothing and commits you to nothing.

Houston Down Payment Assistance FAQs

Is there down payment assistance for teachers in Houston?

Yes. Home for Texas Heroes through TSAHC was built for teachers, school staff, police, corrections officers, firefighters, EMS personnel, and veterans. It offers up to 5% of the loan amount as a grant or a forgivable second lien, works anywhere in Texas, and needs a 620 credit score with no first time buyer requirement.

Can you combine an FHA loan with Houston down payment assistance?

Yes. TSAHC and SETH both pair with FHA, VA, USDA, and conventional loans, and City HAP and Harris County DAP are routinely paired with FHA financing. The assistance can cover the 3.5% FHA down payment and contribute toward closing costs.

Is there a first time home buyer Houston no down payment option?

Often, yes. A HAP award or a 5% state grant can bring cash to close close to zero on the right purchase, and a VA loan needs no down payment at all. Your address, income, and credit still have to clear the program you are using.

What is the Houston HAP program credit score requirement?

The City of Houston Homebuyer Assistance Program does not set a minimum credit score. Your first mortgage lender will still apply its own minimum, and the program does require front-end debt-to-income at or below 33% and back-end at or below 45%.

What are the Harris County down payment assistance income limits?

The Harris County program is income-qualified and the home must sit in a qualified census tract in unincorporated Harris County. Purchase price is capped at $285,000 for an existing home and $296,000 for new construction, with liquid assets capped at $30,000. Confirm the current income table with the county before applying.

What is the Houston down payment assistance purchase price limit?

City HAP sets no purchase price cap, provided the payment is affordable within the program’s debt-to-income ceilings. Harris County caps it at $285,000 existing and $296,000 new. TSAHC applies purchase price limits by county, with higher limits in targeted areas.

Do you have to pay back Houston down payment assistance?

Grants are never repaid. Forgivable loans are written off after the holding period, three years for TSAHC and SETH, five years for City HAP, and five or ten years for Harris County depending on award size. Deferred loans carry no monthly payment but come due on sale, refinance, or payoff.

Can I get down payment assistance in unincorporated Harris County?

Yes, and unincorporated areas are the only places the Harris County program serves. Parts of Cypress, Spring, Atascocita, and northeast Harris County qualify, but eligibility is determined parcel by parcel rather than by area name, so the address has to be verified.