First-time homebuyer programs and down payment assistance in Texas
Texas has state, city and county programs that may help with a down payment or closing costs. Here is how to compare them, what to ask a lender, and where to verify the details yourself.
Texas homebuyers may be able to use down payment assistance from state programs such as the Texas State Affordable Housing Corporation (TSAHC) and the Texas Department of Housing and Community Affairs (TDHCA), and in some areas from city or county programs. Both state agencies list assistance of up to 5% of the loan amount, offered through participating lenders, with income, purchase price, credit score and homebuyer education rules that vary by program and county. Whether you qualify is decided by the program and your lender, not by an agent.
Details checked October 24, 2026. Rules, programs and numbers change, so verify with the source before you rely on them.Programs worth checking in the Houston area
No single program fits every buyer. The table below is a starting point for the programs most often relevant to Houston-area buyers. It is not a complete list, and every row is as of Oct 24, 2026. Programs change their limits, funding and rules, so verify each one at the source linked in the sources list.
| Program | What it offers | Key rules to check |
|---|---|---|
| TSAHC Home Sweet Texas | Fixed-rate loan with down payment and/or closing cost assistance of up to 5% of the loan amount, as a grant or a 3-year forgivable second lien. Mortgage Credit Certificate (MCC) available to first-time buyers. | County income and purchase price limits; primary residence; credit score minimums (TSAHC lists 620 on government loans and 640 on conventional); apply through an approved lender. |
| TDHCA My First Texas Home | Up to 5% assistance as a 30-year deferred repayable second lien or a 3-year forgivable second lien. Texas MCC offered separately or as a combination. | First-time buyer (no ownership interest in a primary residence in the past three years), waived for veterans and qualified targeted census tracts; 620 minimum FICO; county income and price limits; TDHCA-approved loan officer. |
| TDHCA My Choice Texas Home | Up to 5% assistance, same two second-lien options. | No first-time buyer requirement; county income limits and other program rules still apply. |
| City of Houston Homebuyer Assistance Program (HAP) | No-interest forgivable loan of up to $75,000 for income-qualified first-time buyers. | Home must pay taxes to the City of Houston; household income at or below 80% of Area Median Income (the guidelines also reference up to 120% AMI for assistance funded by TIRZ set-aside money); first-time buyer (no home owned in the last three years); 8-hour HUD-approved homebuyer education; forgiveness is tied to a period of affordability (the guidelines list 5 years for assistance up to $50,000 and 8 years for $50,000.01 to $75,000). |
| Harris County Down Payment Assistance | Forgivable deferred second lien for first-time buyers in unincorporated Harris County. | As of the date above, the county page says it is accepting applicants affected by Hurricane Beryl/Derecho and cannot accept others; purchase price caps, 580 minimum credit score and flood-hazard property limits apply. |
Separate from assistance programs, an FHA-insured loan can allow a down payment as low as 3.5% of the purchase price, according to HUD. That is a loan type, not a grant, and it still goes through an FHA-approved lender.
How the money usually works
Most Texas down payment assistance is paired with a specific first mortgage from a participating lender. The assistance itself usually takes one of three shapes:
- Grant: money you do not have to repay (TSAHC describes this option for its Home Sweet Texas program).
- Forgivable second lien: a second loan that is forgiven after a set time if you stay in the home and do not sell or refinance. TSAHC and TDHCA each list a 3-year version, and the City of Houston ties forgiveness to a 5- or 8-year occupancy period depending on the award size.
- Repayable second lien: a deferred second loan that is repaid later. TDHCA lists a 30-year deferred repayable option.
A Mortgage Credit Certificate (MCC) is different. It is a federal income tax credit, not cash at closing. TSAHC describes its MCC as a credit equal to 15% of the mortgage interest paid each year, and TDHCA notes that you need federal tax liability to benefit from it in any given year. Ask a tax professional how it would apply to you.
Why the details matter: forgivable does not mean free if you sell or refinance early. Ask each lender what would have to be repaid, and when, before you choose an option.
A simple order of steps
- Check eligibility first. Use the program's own quiz or ask a participating lender. Income and purchase price limits vary by county, so the same household can get different answers in different counties.
- Complete any homebuyer education. TDHCA lists a homebuyer education course as a requirement, and TSAHC lists required education videos for some of its options. The City of Houston requires an 8-hour course through a HUD-approved housing counseling agency, and Harris County requires a HUD-approved course.
- Pick a participating lender early. These programs run through approved lenders, so choosing one before you shop helps you set a realistic price range.
- Shop with the limits in mind. Purchase price caps and property rules (for example, location inside City of Houston limits) can narrow the homes that qualify. I can help you search within those limits once your lender confirms them.
- Compare in writing. Ask for the monthly payment and total cash to close with and without assistance, side by side.
Questions to ask a lender about assistance
- Which program and which assistance option (grant, forgivable or repayable) fits my situation, and why?
- What happens if I sell, refinance, move out or rent the home during the program period?
- What are the income, purchase price, credit score and debt-to-income limits for my county?
- Are there program fees, and are they paid at closing?
- Is funding currently available, and how long does a reservation last?
Where an agent fits in
I am a real estate sales agent, not a lender. I cannot approve assistance or tell you whether you qualify. What I can do is help you plan the home search around the numbers your lender gives you, explain how the contract and timelines work, and point you to the official program pages so you can check the rules yourself. You can read more on the Buy page, or see my other guides under Resources. If you are shopping in the west or north suburbs, you may also like buying in Katy, Cypress and Spring.
Frequently asked questions
What is down payment assistance in Texas?
Down payment assistance (DPA) is money from a housing agency or local government that can go toward a buyer's down payment and, in some programs, closing costs. In Texas it is usually delivered through an approved mortgage lender as a grant or as a second lien that may be forgiven over time. Terms differ by program, so read the program's own rules.
Do I have to be a first-time homebuyer to get help?
Not always. TSAHC says its Home Sweet Texas program is not limited to first-time buyers, although some options, such as the Mortgage Credit Certificate, are tied to first-time buyer status. TDHCA's My First Texas Home is for first-time buyers (no ownership interest in a primary residence in the past three years, with exceptions such as veterans and certain targeted census tracts), while its My Choice Texas Home has no first-time buyer requirement. The City of Houston and Harris County programs listed here are for first-time buyers.
Does Texas down payment assistance have to be repaid?
It depends on the program and the option you choose. TSAHC describes a grant that does not have to be repaid, or a forgivable second lien that is forgiven after three years if you do not sell or refinance the home. TDHCA lists a 30-year deferred repayable second lien and a 3-year forgivable second lien. The City of Houston describes a no-interest forgivable loan tied to a period of living in the home (5 or 8 years depending on the amount). Ask your lender for the exact repayment terms in writing.
How do I apply for TSAHC or TDHCA assistance?
You apply through a participating lender, not directly through a real estate agent. TSAHC suggests starting with its eligibility ("path finder") quiz, which connects you with an approved lender. TDHCA says you must work with a TDHCA-approved loan officer. Start with the lender conversation before you make an offer, since program rules can affect your timeline.
What credit score do I need?
Minimums vary by program and loan type. As of Oct 24, 2026, TSAHC's program page lists a 620 minimum credit score on government loans and 640 on conventional loans, and TDHCA lists a 620 minimum for its first mortgage programs. Lenders can set stricter requirements, so confirm with a participating lender.
Sources
Checked October 24, 2026. Links go to the original publisher.
- Home Sweet Texas (Texas State Affordable Housing Corporation (TSAHC))Used for: Assistance up to 5% of the loan amount, grant vs. 3-year forgivable second lien, MCC, first-time buyer rules, credit score minimums, how to apply.
- Homebuyer and renter informational videos (TSAHC)Used for: Required homebuyer education videos for the 3-year forgivable DPA and the MCC.
- TSAHC Homebuyer Programs (TSAHC)Used for: Program overview, income limits vary by county, 620 / 640 FICO for FHA manual underwrite.
- Income and Purchase Price Limits (effective June 13, 2026) (TSAHC)Used for: County income and purchase price limits are published by county; Home Sweet Texas limits shown at 150% AMI.
- Programs at a glance (My First Texas Home, My Choice Texas Home, Texas MCC) (Texas Department of Housing and Community Affairs (TDHCA))Used for: Up to 5% assistance, first-time buyer definition and exceptions, 620 minimum FICO, DTI guidance.
- TDHCA Lender Guide (TDHCA)Used for: 30-year deferred repayable and 3-year forgivable second liens, MCC tax credit description and the need for federal tax liability.
- Homebuyer Assistance (HAP) (City of Houston Housing and Community Development Department)Used for: Up to $75,000 forgivable loan, first-time buyer, 80% AMI, City of Houston tax jurisdiction, forgiven after the occupancy period.
- Homebuyer Assistance Program Guidelines (Eighth Amended and Restated) (City of Houston HCDD)Used for: $75,000 maximum, 8-hour HUD-approved homebuyer education, 5- and 8-year periods of affordability, 80% / 120% AMI references.
- Down Payment Assistance (Harris County Housing & Community Development)Used for: Unincorporated Harris County, current availability limited to applicants affected by Hurricane Beryl/Derecho, award and price limits.
- Let FHA Loans Help You (U.S. Department of Housing and Urban Development (HUD))Used for: FHA down payment can be as low as 3.5% of the purchase price.
Want to talk through your options?
I can walk you through the home search side and help you line up your timeline with a participating lender. I cannot tell you whether you qualify for a program.
General information only, not legal, tax, financial, lending or insurance advice. Mr. Wright is a real estate sales agent, not a lender, attorney or tax adviser. No price, savings, approval or outcome is promised. Details as of October 24, 2026.
