Houston Down Payment Assistance Programs (2026 Guide)
A 2026 guide to down payment assistance in Houston: City of Houston HAP, Harris County DAP, Fort Bend and Montgomery County, TDHCA, TSAHC and SETH, plus FHA, VA, USDA and conventional basics.
yes, there are real down payment assistance (DPA) programs for Houston-area buyers. They range from local programs with large amounts but strict rules and limited funding, to statewide programs that typically offer up to 5% of the loan amount through participating lenders. Program details below were checked on official websites on November 1, 2026. Amounts and rules change often, so always confirm with a participating lender.
Details checked November 1, 2026. Rules, programs and numbers change, so verify with the source before you rely on them.First, the low-down-payment loan basics
- FHA: 3.5% down with a 580+ credit score (10% with 500 to 579), per HUD.
- VA: 0% down for eligible veterans, service members and some surviving spouses; no PMI, though a funding fee may apply.
- USDA: 0% down for eligible homes in eligible areas, with household income limits.
- Conventional: as low as 3% down on some programs, such as Fannie Mae HomeReady and Freddie Mac Home Possible.
DPA usually comes as a grant (no repayment), a forgivable loan (forgiven if you stay a set time), or a deferred loan (repaid when you sell, refinance or pay off the mortgage).
Houston-area programs
City of Houston Homebuyer Assistance Program (HAP): up to $75,000 as a 0% forgivable loan for first-time buyers at or below 80% of area median income buying a home that pays City of Houston taxes. You must live in the home 8 years. As of November 1, 2026, the City says it is not accepting new applications because funds are exhausted. Check back at houstontx.gov/housing/hap.html.
Harris County Down Payment Assistance Program (DAP): up to $40,000 total including insurance and warranty incentives, with up to $27,100 for down payment, prepaids and closing costs. It is for first-time buyers with a 580+ credit score buying in unincorporated Harris County, with price caps of $285,000 (existing) and $296,000 (new). It is currently accepting only applicants affected by Hurricane Beryl/Derecho.
Fort Bend County Housing Finance Corporation: $10,000 for first-time buyers purchasing in Fort Bend County, first come, first served, while 2026 funds last.
Montgomery County HOME DPA: up to $12,600 for buyers below 80% AMI who haven't owned in 3 years, buying outside Conroe city limits. It is administered by Easter Seals Greater Houston.
Statewide programs you can use in Houston
- TDHCA My First Texas Home: up to 5% DPA with a 30-year fixed FHA, VA or USDA loan. First-time buyer rules apply (waived for veterans and targeted areas). 620 minimum credit score.
- TDHCA My Choice Texas Home: up to 5%, no first-time buyer requirement, conventional allowed, no purchase price limit (income limits apply).
- TSAHC Homes for Texas Heroes: up to 5% as a grant or a loan forgiven after 3 years, for teachers, first responders, corrections officers, nursing faculty, veterans and more.
- TSAHC Home Sweet Texas: the same type of assistance for low- and moderate-income buyers.
- SETH 5 Star Texas Advantage: up to 5%, no first-time buyer requirement, 640 minimum credit score, no maximum sales price. SETH also lists an extra $3,500 grant when combined with its Mortgage Credit Certificate (MCC).
How to get pre-approved with assistance
- Check your credit and fix errors.
- Set a comfortable monthly budget.
- Gather pay stubs, W-2s, tax returns and bank statements.
- Talk with a lender approved for the programs you want.
- Take the required homebuyer education course.
- Get your pre-approval letter.
Frequently asked questions
Is there down payment assistance in Houston right now?
Yes, though availability changes. Statewide programs (TDHCA, TSAHC, SETH) work through participating lenders. As of November 1, 2026, the City of Houston HAP is paused and the Harris County DAP is limited to Beryl/Derecho-affected applicants.
Do I have to be a first-time buyer?
Not always. TDHCA My Choice Texas Home and SETH 5 Star have no first-time buyer requirement. Many local programs require that you haven't owned a home in 3 years.
Is down payment assistance free money?
Sometimes. Grants don't have to be repaid. Forgivable loans are forgiven if you meet the terms. Deferred loans are repaid when you sell or refinance.
Can I combine programs?
Sometimes, but not freely. Your lender will tell you which programs can be layered.
What credit score do I need?
It varies: 580 for Harris County DAP, 620 for TDHCA, 620 to 640 for TSAHC depending on loan type, and 640 for SETH 5 Star.
Where do I start?
With a lender approved for the programs you're interested in. Mr. Wright can help connect you.
Sources: City of Houston HAP · Harris County DAP · Fort Bend County HFC · Montgomery County DPA (Easter Seals) · TDHCA · TSAHC Heroes · TSAHC Home Sweet Texas · SETH
Equal Housing Opportunity · Brokered by Walzel Properties · TREC Information About Brokerage Services · TREC Consumer Protection Notice. This article is general information, not legal, tax or financial advice.